9. Promotion of goods (services)
9.1. Promotion functions
Promotion is any form of communication to inform, persuade, remind about goods, services, social activities, ideas, etc.
The most important promotion functions:
- creating an image of prestige, low prices, innovation,
- information about the product and its parameters,
- maintaining the popularity of goods (services),
- changing the way the product is used,
- creating enthusiasm among sales participants,
- persuading customers to switch to more expensive products,
- answers to consumer questions,
- favorable information about the company.
Promotion goals: stimulating demand and improving the company's image. Specific actions depend on the so-called impact hierarchy (Table 9.1).
Table 9.1
Their roles in consumer and industrial marketing are somewhat different (Table 9.2).
Table 9.2
Places by importance of types of promotion
If marketing research aims to “listen” to the consumer, then promotion is the second half of the dialogue (see Fig. 35).
Rice. 35. Roles of research and promotion in marketing
9.2. Composition and main provisions of the theory and practice of advertising activities
The concept of coding is as follows. The media for transmitting advertising messages (television, the press) have specific features that can distort the message and introduce “information noise”. Therefore, a certain optimization of the impact of individual messages is necessary, taking into account the external environment of the recipient.
Promotion should be considered as an integral part of the marketing mix. Advertising refers to competitive product brands. Therefore, it would seem that with its help we should try to increase sales of this particular product. However, a progressive element of promotion is the promotion of the entire company, and not its individual brands. Since a company can use different types of promotion, this promotion contributes to the promotion of individual brands of goods. Each type of promotion is designed for a specific target audience. But each of these promotion campaigns must be considered as part of a single whole.
Research has shown that advertising is more effective if:
- the product is standardized,
- there are many end consumers,
- small size purchase is typical,
- sales are carried out through intermediary channels, and not directly,
- support services are important,
- the product has a premium price (or premium quantity),
- the manufacturer has a significant benefit per ruble of sales,
- the manufacturer has a relatively small market size and/or excess production capacity,
- the majority of the manufacturer's sales are made up of new products.
In general, there are three main groups of actions in advertising activities:
- information (a message that the product exists and what its qualities are),
- persuasion (inducing favorable emotions, forming a position of recognition of the product, switching consumer decisions to purchase it),
- maintaining loyalty (consolidating existing consumers as the main source of future sales).
To ensure all this, a unified process for managing advertising activities must be carried out (Fig. 37).
9.3. Advertising in industrial marketing
Advertising in industrial marketing has its own characteristics. In many ways, it is carried out through personal contacts and requires more information. These campaigns last for a longer period, the budget of advertising campaigns is relatively smaller (per unit of sales). The campaign typically targets 6-7 individuals in each buying organization, and so on.
9.4. Developing a message (message)
The main message in an advertisement is usually based on a specific benefit, with which the advertiser identifies the main advantage in which his product differs from that of a competitor. The advertiser will strive to find a “unique selling proposition” (USP). It can be based on physical or intangible characteristics of the product. On the other hand, SCP can be based on the psychological aspect: fear (insurance of financial transactions), guilt, positive emotions (love), humor. It can also be based on certain associations (Pepsi-Cola and Michael Jackson).
Moreover, if the product is practically similar to similar products of competitors, then the company can try to explain its advantages more clearly than competitors, for example, differentiate its advertising style and thereby create an “additional value” in advertising effectiveness.
It is believed that an advertising campaign should be built in two stages:
- attracting public opinion leaders;
- attracting the bulk of potential consumers (typical consumer groups at different stages of the product life cycle should be taken into account).
The message may be contained not only in speech or video, but also in something that was kept silent, but it is quite eloquent.
The choice of message must necessarily take into account the need to persuade the recipient. Experts typically recommend some focus on the central selling proposition. The strength of an advertising campaign depends on the strength of the main idea contained in it. This idea should be:
- clearly defined and rich;
- clear and simple;
- believable for the recipient;
- resistant to opposition;
- related to the needs of the consumer.
The actual application of marketing techniques may differ significantly from theoretical concepts. Thus, it is considered an axiom that any marketing decision should be based on marketing research. However, there are situations where this is literally difficult to follow. For example, a competitor suddenly changes its strategy; retaliatory actions should follow within a few days. There is simply no time for marketing research, and decisions are made largely intuitively.
Real (“rough”) marketing is therefore based on the inclusion of a large number of intuitively assessed factors due to incomplete information and lack of resources. Therefore, when developing advertising messages, success will largely depend on the plausibility of the simulation of the average consumer.
In theory, selecting a message medium should be a process of selecting the most cost-effective medium to achieve the greatest coverage and number of presentations. Typically both of these dimensions are assessed. Advertising must reach the maximum number of target audiences. It is usually difficult to capture the last percent of this mass: the cost of cumulative coverage is described by an exponential curve. Thus, the coverage decision in practice represents a balance between the desired full coverage and the cost of achieving it.
Even with high coverage, a one-time presentation of advertising (“Opportunity To See” - OTS) is not enough to influence the recipient. Typically, an average of about 5 OTS is needed to achieve the required degree of impact to the level of recognition and switching attention to the advertised brand of product. Achieving five OTS even with 70% target audience coverage may require 20-30 national press releases. Submission frequency is a function of campaign timing. 12 messages in a year or 12 messages in a week are not the same thing. It is often considered appropriate to present information in “rolls” or “waves”.
Main types of message media (in order of importance):
The press can be divided into the following sectors: national newspapers, regional newspapers, magazines, professional and technical literature.
Posters (road posters), radio and cinema are the least attractive mediums for transmitting messages due to their specificity.
Research in England determined the positioning of various information environments (Fig. 38).
9.5. Work of advertising agencies
Traditionally, such agencies perform three main functions:
- accepting orders,
- creative work,
- purchase of message medium.
Additional functions:
- production,
- control,
- administration,
- marketing research,
- marketing,
- “public relations”,
- direct mailings,
- promotion.
A typical agency organization is shown in Fig. 39.
The differentiating factor for most advertising agencies is their creativity. To achieve this, large agencies must have certain creative specialists:
Text writers prepare texts and scripts, often being sources of original ideas. The visual element of an advertisement is prepared by artists who are usually called visualizers. They work hand in hand with the text writers, creating sketches with texts. Usually they do not produce a finished artistic work, for which specialist photographers, illustrators, etc. are invited. Producers are needed in television, radio or film. They ensure relationships with external partners to ensure that all commercial terms and conditions are met.
From the client's point of view, the typical ad creation process goes through a number of stages:
The order is usually made in a standard form, which is agreed upon by the client with the agency responsible for accepting the order and the executive artistic director (visualizer) (Fig. 40).
Acquiring a presentation environment also involves a number of stages:
9.6. Planning of advertising activities
As with all types of marketing activities, advertising must establish its objectives, including:
- who and where (target audience, percentage coverage, message environment);
- when (time balancing of individual parts of the campaign);
- what and how (the essence of the message and its presentation).
The most important aspect of the plan is that it must be quantified, including results (particularly awareness and shifts in audience acceptance of the product).
The budget for an advertising campaign is usually determined based on experience. The most popular approaches:
- if possible (depending on individual costs and required profit);
- as a percentage of sales;
- based on parity with competitors;
- according to goals and objectives (calculation of necessary costs).
A survey of companies in England showed that three approaches are most often used in practice:
- percentage of sales volume (44% of companies);
- estimates of production costs (21%);
- by goals and objectives (18%).
The process of advertising research usually follows the same rules as other marketing research: the time and channel of turning on the TV is studied, remembering the advertising message on TV and in newspapers. “Spontaneous awareness” is measured by the proportion of those who remember the brand without any other promotion. “Promotion awareness” is measured by the proportion of those who recognized the brand when presented with it.
Brand recognition is assessed by the number of those who changed their position as a result of the advertising campaign. And finally, the integral indicator is the increase in sales after such a campaign. Test marketing is also used to compare different campaigns in different regions.
An effective method for studying the effectiveness of advertising in the press is a system of coupons - discounts upon presentation of the coupon in the newspaper. Thus, it is possible to evaluate the effectiveness of advertising by publication, time of release, placement of information, etc.
One aspect of planning advertising activities is choosing an advertising agency. The following order is recommended:
1. Clear definition of needs and goals.
2. Desk search - selection from reference books and based on your own experience.
3. Formulation of the task - optimal advantages, key questions.
4. Narrower search - narrowing the alternatives to two or three agencies.
5. Real choice.
9.7. Legal aspects of promotion
Legislation regulates the activities of promotion firms. These requirements range from prohibiting the installation of billboards in certain locations to requiring popular personalities who advertise certain products to actually use them.
There are five main ways to legally protect consumers and competitors from unfair promotion:
- provision of complete information;
- confirmation;
- termination orders;
- corrective advertising;
- fines.
Providing complete information requires that the consumer has all the data necessary to make the right decision (product composition, consequences of use, etc.).
Verification requires that a firm can prove all of the claims it makes, including through rigorous testing.
Fines may be levied to the treasury and in the interests of specific consumers.
9.8. Direct and interactive marketing
Direct marketing consists of direct (interactive) communications with a selected specific buyer, often in the form of a personalized dialogue, to obtain an immediate response.
Main forms of direct marketing:
- personal (personal) sales - direct interaction with one or more potential buyers for the purpose of organizing presentations, answering questions and receiving orders;
- direct mail marketing - includes mailing letters, advertising materials, booklets, etc. to potential buyers to addresses from mailing lists;
- catalog sales - the use of catalogs of goods sent to customers by mail or sold in stores;
- marketing by telephone (telemarketing) - using the telephone as a tool for directly selling goods to customers;
- direct response television marketing - marketing of goods and services through advertising television (or radio) programs using feedback elements (usually a telephone number);
- interactive (online) marketing - direct marketing carried out through interactive computer communication services in real time.
Companies that use direct marketing closely monitor the relevance of the marketing offer to the needs of a narrow segment of consumers or an individual buyer.
Many companies, when using direct marketing, focus primarily on concluding individual transactions. However, recently, more and more companies are turning to direct marketing in order to achieve not only more effective access to target consumers, but also to create stronger, long-term and individualized relationships with them (relationship marketing).
According to most experts, the transition from mass marketing to individual marketing is associated with changes occurring in the household, with the emergence of technologically complex products, new ways of making purchases and paying for them, with intense competition, with the development of additional distribution channels and new information technologies.
Below are the main differences between mass and so-called individual marketing:
|
Mass Marketing |
Individual Marketing |
|
Average buyer |
Individual buyer |
|
Anonymity of buyers |
Focus on a specific buyer |
|
Standardized product |
Individual market offer |
|
Mass production |
Customized production |
|
Mass distribution of goods |
Individual distribution |
|
Mass product promotion |
Creating personalized purchase incentives |
|
Unidirectionality of the product message |
Bidirectionality of product message |
|
Emphasis on scale |
Focus on depth of coverage |
|
Coverage of all buyers |
Reaching profitable customers |
|
Market share |
Share among buyers |
|
Attracting buyers |
Customer Retention |
In direct marketing, the key to success is detailed information about the individual consumer. Modern enterprises create special customer databases, which represent an array of detailed information about individual (potential) customers, including geographic, demographic, psychographic, as well as data on the characteristics of purchasing behavior. Such databases are used to find potential buyers, modify or develop products to suit their specific needs, and maintain relationships with them.
Database marketing is the process of creating, using, maintaining customer databases, as well as other databases (products, distributors, sales, etc.) for the purpose of completing sales transactions and establishing relationships with customers.
Companies use both individual forms of direct marketing and integrated direct marketing, which can include all forms. One of the diagrams of the integrated MSP (Marketing and Sales Productivity System) system is shown in Fig. 41.
Rice. 41. Information support for direct marketing
A relatively new and rapidly developing form of direct marketing today is interactive marketing and e-commerce. Interactive marketing has gained such popularity for the following main reasons:
The advantages of interactive marketing also include:
- the possibility of its use by both large and small firms;
- practically unlimited electronic (as opposed to, for example, printed) advertising space;
- fairly fast access and copying of information;
- as a rule, confidentiality and speed of electronic purchases.
In addition to the advantages, modern interactive marketing has some disadvantages:
- limited access of buyers and, consequently, volumes of purchases;
- some one-sidedness of demographic and psychographic information about customers;
- chaos and information overload in global networks;
- insufficient security and confidentiality of data.
9.9. Sales promotion
Key characteristics of this type of promotion:
- effectiveness for a relatively short time;
- direct impacts on sales potential, distribution channels, consumers or a combination of these groups;
- use for specialization of some specific actions.
Sales promotion covers a wide range of possibilities. To those given in table. 9.3 Sponsorship should also be added (for example, for sporting events).
Table 9.3
Types of Sales Promotion
|
indirect |
indirect |
indirect |
||||
|
Consumer |
Price reduction |
Coupons |
Free access |
Coupons |
Guarantees |
|
|
Trade |
Instructions to dealers |
Expanding Credit |
Free gifts |
Coupons |
Guarantees |
Coupons |
|
Sellers |
Bonds |
Coupons |
Free gifts |
Coupons |
Free service |
Coupons |
The main advantages of sales promotion:
- sales growth is the main short-term benefit;
- specific target audience;
- clear role;
- indirect roles - the ability to be used to achieve other goals.
Flaws:
- short duration of impact;
- hidden costs;
- the possibility of conflicts with advertising representations;
- price cutoff - the ability for buyers to expect lower prices in the future.
Targeted stimulation methods include:
- price reduction;
- coupons (purchases or services under obligations with price reductions);
- financing of next purchases;
- credit;
- seasonal price reductions.
Non-price incentives:
- buyer competition (lotteries);
- personal promotion;
- free gifts (possibility of additional free purchases);
- presentation of samples of new products for trial use.
9.10. Public relations
Public relations (public relations, PR) is a range of programs whose purpose is to promote and (or) protect the image (image, prestige) of a company or individual products.
Publicity (propaganda) is a type of public relations and is defined as the non-personal and non-sponsored stimulation of demand for a product, service or activity through the publication of commercially important information in the printed media or favorable presentation on radio, television or on stage.
One of the most important tasks of PR is maintaining contacts with key journalists in relevant areas (press, magazines, radio, TV). This is essentially a process of “investing” (results will not appear immediately). First of all, these are messages about new results, new products, demonstrations of such new products at business meetings, lunches, and conferences using communication technology. It is advisable for companies to create certain press centers.
Corporate PR tools include:
- relations with shareholders;
- advertising;
- connections with local communities;
- sponsorship;
- Exhibitions.
Exhibitions provide a double effect: product demonstration and personal contacts. Therefore, exhibitions should be carefully planned based on objectives, theme selection, placement and design.
Goals should consider retaining existing customers and acquiring potential ones. This can be illustrated by the matrix in Fig. 42.
Rice. 42. Matrix of goals for “public relations”
| Previous |
Beautiful signs, commercials on television and radio, leaflets and gifts given by promoters, tastings and exhibitions, promotions and sales are “tricks” known to every consumer, forcing him to pay attention to the enterprise’s offer. Using them, an entrepreneur tries not only to attract attention to his organization, but also to stimulate the first purchase and turn a random client into a regular buyer.
It is already obvious to many that promotion of goods and services is a set of enterprise activities aimed at stimulating customers to make purchases. A modern enterprise has in its arsenal a “portfolio” of lazy marketing tools through which it influences its customers.
Why “promote” products? It is necessary:
> to attract new customers (each product must find its consumer, and the consumer must find its product);
> to stimulate repeat purchases (it is not so much the first purchase that is important, but subsequent purchases);
> to increase consumer loyalty to the organization and its product (if the buyer is satisfied with the purchase, then he develops a favorable attitude about the company);
> to increase consumer interest in the company’s activities (a company that always satisfies the needs of its consumers and pleasantly surprises them becomes interesting in all its manifestations);
> to establish compliance with consumer expectations (promotion activities have become a habitual and expected activity of the organization from the consumer’s perspective, the consumer expects promotions, discounts, competitions, etc.);
> to get rid of the remnants of “obsolete” products (often, through promotional activities, an organization can “get rid” of the remnants of “not entirely necessary” products).
Let's look at how the above tasks are implemented in the context of lazy marketing.
You can start attracting new consumers long before the store opens. This will inform a large number of potential consumers and warm their attention to your offer. It is for this purpose that large stores at least two weeks before opening, begin active advertising, broadcasting their commercials on television and radio. Outdoor advertising and bright signs with corresponding calls have no less effect: “Opening soon!”, “New collection”.
Directly on the opening day or presentation of new collections, you can use the distribution of leaflets or promoter dolls inviting you to the store. As an addition, you can offer the buyer a tasting, a discount or a gift for a purchase.
Forming a first impression of the store– one of the decisive moments in promotion. It is important to create a welcoming and festive atmosphere so that in the future consumers will have only pleasant impressions of your company. If you simultaneously want to stimulate long-term relationships with consumers, then this is a very convenient moment for distributing discount or club cards, as well as collecting event and consumer information about consumers for the purpose of implementing event marketing. Remember, a satisfied customer shares information about the store he likes with at least 20 more friends!
If the buyer is already yours, the next task is keep it and stimulate future purchases. To do this, you can use discount and club cards, which will create an idea of the benefits of cooperation with your company. It is desirable that the discounts be cumulative, which will provoke an increase in the amount of one purchase and the frequency of purchases. However, this is also not the main thing...
It is necessary to serve the buyer in such a way that he feels comfortable and has a desire to come back again. This impression is made up of the following elements:
> attentive attitude (consulting, providing additional information about the product and methods of use, providing additional services);
> taking into account consumer preferences and desires (notification of the arrival of a new collection);
> attention to individual consumer characteristics (congratulations on your birthday, happy holidays);
> creating a comfortable environment (no queues, the presence of comfortable chairs, places to park a car and place a baby stroller, pleasant music, beautiful retail equipment, etc.).
Imagine yourself in your buyer's place and you will immediately understand what he needs. Or ask him about it. Modern buyers are no longer intimidated by consultants’ questions and willingly answer them, expecting that the level of service will increase next time.
Increased loyalty - a complex marketing task, the solution of which is assigned to the entire staff. Especially for “first line” workers who directly communicate with clients. These should be not only outwardly pleasant sales consultants, but also, to some extent, psychologists. Their task includes not only selling goods, but also identifying needs and satisfying them, as well as creating an atmosphere of goodwill. The buyer may not find the model he needs, but if he likes the way he was communicated with, he will appreciate it and come again. Sales personnel must always remember that he is the “face” of the company and the impressions from communication with him are projected onto the image of the entire enterprise.
Interest in the company from consumers is manifested in the following cases:
> if she is interested in the lives of customers;
> if it is focused on meeting the needs of its consumers;
> if she values and respects their time, costs and time;
> if it is open and provides information about itself;
> if it values its consumers and is ready to make some concessions in order to retain them;
> if it accompanies its consumers during periods of time that are important to them.
In cases where at least some of these “ifs” are met, the consumer will be interested in what is happening with the organization. In order to satisfy this interest, it is necessary create a communication system. IN As communication channels, you can use information boards, corporate newspapers, leaflets, reports about the company in the media, interviews and organization personnel, personal communication with customers, a website, Direct-mail, exhibitions and fairs, and much more. Tell the consumer about the history of the company, about the basic principles of activity and development prospects, about products and services, about how you love and value your consumer. Offer to participate in the development of promotions or in a survey, or in holding a children's competition.
The modern consumer is tempted by various unique commercial offers. The competitive market environment has led to offers everywhere for price reductions, additional services, gift vouchers, etc. These tools have become “expected”. If a female buyer comes to a store and is not offered a discount on a product she likes or is not given a discount card, then her expectations are not met. For the buyer of household appliances, purchases on credit and delivery of goods to their home have become “expected”; for the buyer of a mobile phone, free setup of Internet access and MMS; for the client of a sports club, a personal locker in the locker room and always clean towels. That is why an organization must constantly enrich its product, complementing it with related products and services in order to meet the “expectations” of its consumers.
In turn, if your offering exceeds customer expectations, then you have developed a competitive advantage that will set you apart from your competitors.
Each product, just like a person, just like an organization, has its own life cycle. And it happens that it ceases to be popular or as necessary for the consumer as before. This leads to a significant decrease in sales volume and accumulation of goods in the warehouse. In this case, you can use promotion tools. For example, offer this product at a reduced price or use it as a free gift (after first finding out whether your consumer needs it).
All of the above tasks are implemented by enterprises to varying degrees depending on the market, field of activity, specifics of the product or service, consumer expectations and level of communication with him. However, despite the fact that some task at some point becomes the most urgent, the rest cannot be forgotten either. This will significantly reduce the overall impact on the consumer. That is why we are talking about a promotion system in which all elements are important and interconnected.
The elements of the promotion system include advertising (in all its forms), sales promotion activities, merchandising, participation in exhibitions and fairs, personal selling, direct mail, event marketing.
They can also be presented structurally (see Table 3).
Table 3Structure of promotion system elements5.2. Promotion process
Promotion of products and services is carried out differently in different companies. However, it is possible to define some stages that are standard for all:
> defining goals and objectives for promotion;
> identifying the target audience;
> selection of promotion tools;
> budgeting for promotion;
> determining the time frame for promotional activities;
> determination of promotion efficiency indicators.
Promotion of products and services can be carried out either directly by the enterprise or by resorting to assistance from specialized agencies.
If an entrepreneur decides to organize the promotion process using his own employees, then he needs to be prepared for painstaking and creative work. It is important to identify not only the products that need to be promoted, but also to conduct a consumer survey to determine which tools will be effective. Here, the role of sales personnel is invaluable, since it is the sales floor workers and managers, who actively communicate with customers, who can provide the correct information about their interests and expectations.
At the same time, if you decide to entrust this responsible task to a specialized agency, then you need to remember the following:
> young agencies can often be very creative and provide a more comprehensive range of services and options at a lower cost;
> involve the agency in budget planning so that they know the limits of your financial capabilities and act within them;
> be sure to describe the promotion model proposed by the agency to managers and sales staff; they will certainly be able to provide useful comments and additions.
The promotion process consists of the following stages: preparing information for the consumer, choosing a channel for transmitting information, transmitting information, receiving feedback, assessing the effectiveness of promotion and conclusions.
The information message for the consumer should be bright, short, and memorable. This could be a small and bright slogan that could be passed on from mouth to mouth.
The message transmission channel must be accessible and convenient for the consumer. When posting a television commercial, determine whether the broadcast time will be convenient for the potential consumer. If you plan to use outdoor advertising, then think about whether your target audience pays attention to it. The same applies to the placement of POS materials. If the sticker contains information about a children's product, it should be located at the child's eye level.
Information transfer process should be quick and easy for the consumer. Also, it should not be accompanied by large financial costs.
It is important to find out what effect the information message had on the consumer, whether he found it interesting and whether it allowed him to solve the problems.
Evaluating the effectiveness of the promotion process depends on the planned indicators that were determined before the implementation of the promotion program. It is possible to determine not only economic efficiency, focused on an increase in sales, but also a social effect, due to which the company’s image is enhanced and consumer loyalty is increased.
5.3. Sales promotion activities
Promotion management has in its arsenal a variety of means to achieve goals: advertising, publicity, sales promotion, point-of-sale advertising, the use of sports and entertainment events, personal selling. We offer the following brief definitions of the concepts used.
In a broad sense, advertising influence is carried out through the use of media: newspapers, magazines, radio, television and others (outdoor advertising: billboards, banners, advertising on transport, signs), or through direct contact with the buyer using mail.
In order to develop a bright and meaningful advertising message, as well as choose the most effective channels and means of advertising, it is better to contact a specialized advertising agency.
Publicity is not a personal appeal to the target audience. Forms of publicity include: official statements in the press by company representatives, messages in news programs, comments by editors in the press about the company’s products or its activities. This information is not paid for by the company itself and forms an idea of reliability and objectivity in the minds of consumers.
Modern marketers have come to the conclusion that to increase the effectiveness of publicity, it is better to use a wider range of public relations tools (public relations) than just publicity.
Sales promotion is a set of marketing activities aimed at stimulating customers to purchase the company's products or services in the near future. Sales promotion in the activities of companies is presented in the form of promotions (BTL and ATL), loyalty and customer retention programs, events, merchandising, bonus schemes, exhibitions, fairs.
Sales promotion affects all participants in the supply chain: from the distributor to the end consumer. For each link, programs are developed that stimulate specifically its purchasing activity.
Sales promotion in the sales channel includes presentations of the company's products and services, development of retail equipment that allows better presentation of the product to the end consumer, incentive programs for distributors, supervisors, and sales representatives. In order to develop an effective program, you need to analyze the effectiveness of previous programs, find out the needs and motivational expectations of the sales entity.
Information about programs aimed at stimulating customer purchases or increasing consumer satisfaction is placed on product packaging, advertising materials, POS materials, and television and radio commercials. Such information can be transmitted by special consultants (distributors), promoters - during promotions, consultants - at exhibitions and fairs, dispatchers - on hotlines.
As part of the implementation of sales promotion activities, other marketing tasks can be solved.
Sales promotion activities undoubtedly include various competitions that are held in the store. For example, a “competition for the best drawing” in a supermarket. This event can pursue the following objectives: attracting consumers to the store, informing customers about new products and forming a positive attitude towards the company. Parents who bring their children to this competition can shop and receive information about new products and services. At the same time, they will enjoy the fact that the store took care of their children, appreciated their creativity and gave gifts.
Product presentation at the time of purchase is also a sales promotion tool that is often used by fast food companies. For example, sellers at McDonald's, before issuing a receipt for a purchase, will definitely offer some additional product from the assortment, which will increase the amount of the order. If the form of presenting this information is unobtrusive and polite, then the consumer perceives it positively and often buys the recommended product. Thus, investments in personnel training in sales promotion techniques at the time of communication with the consumer are justified and allow the company to increase profits.
The use of entertainment and sporting events as sales promotion activities is not carried out as often as promotions, but their effectiveness is also justified. In addition to the fact that they have a significant impact on sales growth, they also carry a large image-forming load. The positive emotions that a consumer or buyer receives while attending a concert or participating in a sports relay race further form positive associations with the organizing company (customer).
Personal selling is an important sales promotion tool, focused primarily on creating optimal contact with the consumer at the time of selling a product or service to him.
The above promotional tools can be called a complex for promoting the company’s products and services. Thus, promotion management is the coordination and balancing of various marketing tools in order to stimulate additional sales, create a positive image, and attract new consumers.
Promotion management must be consistent with the company's overall marketing goals and contribute to their achievement.
5.4. Merchandising of the sales area
According to marketing research, 85% of purchasing decisions are made directly in the store. The buyer, while in the sales area, is exposed to displays, advertising materials, music and makes unplanned purchases. It is for this purpose that modern retailers use various tools to increase the consumer’s time in the store and stimulate his purchasing activity. Therefore, by beautifully and correctly displaying the product on the shelf, you can significantly increase its sales. Thus, merchandising can also be used as an effective lazy marketing tool.
Merchandising of the sales area- This is a very effective lazy marketing tool that significantly affects the competitiveness of a trading enterprise. How comfortable the consumer will be in your store largely determines how much money he will spend and whether he will return to you again. Modern literature provides a large number of definitions of merchandising. However, in this manual, merchandising will be understood as a system of measures aimed at attracting the attention of consumers and stimulating their purchases through the design of the sales floor and ensuring effective display of goods.
All merchandising techniques are obvious and simple. There is no need to carry out any complex calculations and measurements here. The solution to the problem, as a rule, is on the surface. This is why it has everything to do with lazy marketing.
To understand the essence of merchandising, it is necessary to determine some of its categories.
Place of sale– a place on the sales floor where the buyer can see the product and make a decision about its selection and purchase.
Main point of sale– the only place in the sales area where the entire range of a certain product group is presented.
Additional point of sale– a place on the sales floor used to increase the likelihood of purchasing a product (outside the main point of sale).
Assortment group– products with similar consumer characteristics, presented under the same brand.
Assortment item (SKU – Stock Keeping Unit)– one brand in one type of packaging, one volume.
Single corporate block– all the company’s products are grouped into a single corporate unit at the point of sale.
Facing– a unit of product of a certain brand, type, packaging, visible to the buyer.
POSM (Point of Sales Materials)– advertising materials located in the sales area or directly at the point of sale.
TO main areas of merchandising can be attributed:
> ensuring effective stock;
> the location of product sections in combination with the needs of consumers and the benefits of the retail enterprise;
> ensuring display of goods;
> use of additional points of sale;
> musical accompaniment of the purchasing process;
> provision of POSM materials;
> decoration of the sales area in accordance with the corporate style of the enterprise;
> ensuring a comfortable consumer presence in the store;
> development of economic efficiency of merchandising.
Modern merchandising is based on several principles:
1. Ensuring cleanliness. The first thing the consumer pays attention to is the cleanliness of the floor in the sales area, the absence of dust on the shelves and goods, and the neatness of the sellers and consultants. Therefore, before arranging commercial equipment and goods, it is necessary to ensure cleanliness. Imagine yourself in the consumer’s place: you go into a store, choose a product, and there is a layer of dust on it... Surely, you will form a negative attitude towards the store and get the feeling that the consumer is not loved here.
2. Providing an overview of the entire product for the consumer. When a consumer enters a sales area, he must immediately understand where he needs to go to buy everything he needs. For this purpose, indicators of product sections are placed in the sales area and maximum visualization of goods is ensured.
3. Availability of goods for consumers. The product should be as accessible to the buyer as possible. Availability refers, first of all, to the ability to take a product without making any serious effort. It is also necessary to take into account the consumer purpose of the product. If this is a product for children, for example, a toy, then it must be placed at the child’s height level.
4. Comfortable presence in the store. The concept of comfort is very broad, and its essence largely depends on the individual characteristics of a person and his psychographic characteristics. However, it is possible to define a number of standard comfort requirements for the general population of consumers. These include the following.
1. Ease of movement in the sales area. A person must move freely through product sections without bumping into other people or touching store equipment.
2. Music in the shopping area. Musical accompaniment of the shopping process is an effective means of stimulating sales. According to the results of marketing research, dynamic music causes active movement around the sales floor and accelerates the purchase decision-making process, increasing impulse purchases. Slow (most often classical) music relaxes the buyer and ensures a longer presence in the sales area. It is used in sales areas where carefully selected and expensive goods are presented. Modern retailers select music that is most suitable for the store’s positioning, as well as the behavioral characteristics of the buyer.
3. Quality service. Store personnel must be ready to assist the consumer at any time. The politeness of salespeople and consultants and the ability to provide all the necessary information are highly appreciated by customers and form loyalty to the store. Quality service also requires careful attention to the needs of the buyer. For example, if a woman with a small child comes into the store, a good consultant will certainly help her place the baby stroller and buy everything she needs as quickly as possible.
4. Providing additional services (entertainment, information and others). Often, a buyer comes to a store not only to make purchases, but also to receive advice about a product or how to use it, or, for example, to pay for cellular services through a machine. That is why the store must have the necessary attributes to satisfy the corresponding needs.
5. Availability of auxiliary equipment, facilitating the shopping process - shopping baskets, trolleys, chairs for relaxation, stands for bags, special places for entertainment and distraction of babies accompanying their mothers.
6. Comprehensive use of merchandising tools. All merchandising tools must be used together. While arranging the product beautifully on the shelf, it is also important to ensure the presence of price tags and POSM. In the children's goods section, it is necessary not only to make toys accessible, but also to organize a place for entertainment for children, allowing their mothers to shop in peace.
7. Ensuring shelves are stocked. It is important to give the consumer the impression of constant availability of all the assortment he needs in the store. Therefore, shelves should always be stocked with products that satisfy consumer needs.
8. Ensuring that products are informative. Product packaging must contain all the information necessary for the consumer. Moreover, its main part (name, weight, fat content, etc.) should be duplicated on the price tags.
9. The price should be clear to the consumer.
10. Layout structure. The placement of brands and assortment items on shelf space must be carried out in strict accordance with the assortment matrix and consumer expectations. As a rule, manufacturers, when presenting a product to a store, provide a ready-made assortment matrix that corresponds to the positioning of the product.
11. Compliance with the rule of priority of product location. The store has to take into account the needs of not only the consumer, but also the manufacturer or supplier of the product. Therefore, the priority of product placement on the shelf is determined in accordance with the marketing strategy of the enterprise. A product for which a promotion or some kind of marketing program is being carried out during a given period is placed in priority place.
12. Ensuring cost-effectiveness of using merchandising tools. All merchandising tools and methods should help increase sales and generate profit. Therefore, it is necessary to constantly evaluate the economic feasibility of their use.
Thus, following these principles will allow the trading enterprise to provide effective sales promotion and build consumer loyalty to the store.
The following factors influence how the product will be presented in the store:
1) the image of the store - for example, all sizes of one product are presented at once - this creates a sense of orderliness;
2) packaging - by piece, by weight, etc.;
3) nature of the product - bottles (on the shelf), cosmetics (samples).
There are the following methods of presenting goods in the store:
> ideological presentation of the product - it is based on the image of the outlet (furniture is arranged to show how it would look in a home environment), products are grouped to show options for their use;
> grouping by assortment groups and styles (remedies for fever, painkillers, cough suppressants, etc. - pharmacies display appropriate signs next to groups of medications to facilitate search and selection);
> organization by color scheme (rarely used);
> price equalization (several goods of the same category, sold at different prices, are displayed side by side) - allows you to create the illusion of price choice;
> vertical representation that takes into account the movement of the human eye;
> volumetric presentation – a large amount of goods is displayed (for example, mountains of fruit in the vegetable department), which creates the impression of redundancy of goods;
> frontal presentation – the most attractive side of the product is demonstrated (for example, books are shown front side).
Under the atmosphere of the store visual components are understood - color, smell, lighting, music, which stimulate the emotional state (for example, a restaurant with a cozy atmosphere, dim lights). Lighting allows you to highlight the product (the direction of the light beams highlighting the product should be 3 times brighter than the main lighting). Different shades of light can be used to create a certain mood. Different colors can also cause a certain reaction. There are warm (red, yellow) and cold (blue, green) shades of color. They create the exact opposite psychological reaction. Warm colors are more suitable for food service outlets, stimulating the appetite. Cool tones are useful when selling expensive items. When it comes to odors, women are more sensitive to them than men. To attract customers, some stores use timed fragrances that spray the scent at certain intervals, i.e. they use aroma marketing.
Merchandising can be represented as a set of rules for the effective presentation of goods on the sales floor, as well as their highlighting through various POS materials. Merchandising Tools allow you to stimulate product sales without the use of sales personnel. Thus, merchandising technology to some extent replaces sales assistants in stores and allows you to more actively attract customers.
The main thing in merchandising is that all rules must be tested in practice, directly on the buyer. The manufacturer's opinion on how the product should be displayed on store shelves will have no meaning if it does not correspond to the buyer's opinion. Changing the location of product categories and displays on the sales floors of household appliances, mobile phone and grocery stores often lead to significant changes in sales. If you attract a buyer to a product by highlighting it in some way, you can significantly increase its sales. Thus, the main subject of merchandising, in relation to whom all its tools are used (POSM, display, sound effects, aromarketing), is the buyer. It is to attract his attention that planograms, display diagrams, beautiful and bright posters, signs, price tags, etc. are developed.
The merchandising concept is based on three basic laws: Stock, Location, Presentation. Let's take a closer look at them.
Law of stock. In order for the store to always have the product the buyer needs, it is necessary to determine the volume of the maximum stock, i.e. the amount of product that should be presented on the shelf and stored in the warehouse for a certain period of time (until the next order).
Law of location. In the sales area, you can distinguish both priority places (places that are as close as possible to the buyer and attract his attention) and non-priority places (badly visible places with a low level of accessibility for the consumer). In this regard, it is necessary to know the sales volumes of certain product groups, brands, types and packaging and, in accordance with this, organize all this on the sales floor and on the shelf space. It is also important to position the product facing the buyer. However, this is not always possible due to limited shelf space and the uncertainty of the “face” of the product.
Law of representation. The consumer must and has the right to know all the necessary information about the product: consumer properties, manufacturer and seller data, weight, dimensions, composition, safety data, method of use, side effects, expiration date, etc. Therefore, the packaging of the product or the documentation accompanying it must contain all this information. The buyer should not make an effort to get all of his questions answered regarding the product he wants to buy. In order to provide additional information that attracts the buyer's attention, POS materials and various information tools are used.
The practice of interacting with consumers shows that several points are a priority for them when making a purchase.
1. Specifications, and especially the properties that ensure the safety of using the product. If a buyer wants an iron with an automatic shut-off, this is the feature they will be looking for.
2. Brand. If the buyer has already formed a certain positive attitude towards the brand, then it will be difficult to convince him of the product of another brand. For example, if a buyer has been using Sony household appliances for a long time, then he is unlikely to want to buy a TV or radio of any other brand in the future.
3. Price. When making a purchase decision, the buyer is guided by a certain price that he is willing to pay for the product. If the product is more expensive, then there will need to be compelling reasons for him to purchase it.
4. Design . The current stage of technical development of household appliances has practically equalized household and computer appliances and communications equipment in terms of configuration and functional content. Therefore, the buyer, when choosing a microwave oven, having determined the functional category, the next step will be to choose the design of the oven in accordance with the design of the kitchen. Thus, product design became a priority factor in the purchasing decision.
Merchandising in the household appliances industry has become very important. This is due to the fact that the buyers of this product, for the most part, are not specialists and have little understanding of the intricacies of the design of various devices. Moreover, they don’t want to know this, since they prefer to spend time studying some more important things and solving other problems.
An important concept in merchandising is zoning. Zoning– this is the distribution of service and retail areas of the premises. In a store, the location of product categories and service areas must comply with certain rules and requirements (safety, convenience, compatibility). Service areas should be located away from the customer so that the work of the staff does not interfere with customers.
According to certain sanitary standards Food products should be located at some distance from household chemicals. Packaged dairy products must be placed in special refrigerators that ensure the safety of their consumer properties and are as accessible to the buyer as possible.
In each store, you can identify certain areas that require special requirements due to their importance to the buyer. For example, "entry" zone is extremely important, since it allows a person to “enter” the store and understand that he is no longer on the street. Therefore, depending on the time of year and weather, these areas are equipped with split systems, which, by blowing cold or warm air, create a feeling of comfort when entering the store. Lighting is also important - it should be bright, but not shocking.
Service areas, which include the consultants' area and the cash register area, occupy a certain fixed amount of space. This size can only change depending on customer flow. The usable area can be calculated as follows: subtract all service areas from the area of the sales area. As a result we get to the buyer (which should be at least 70%) and the display area, respectively, about 30% of the usable area. If the buyer's area is smaller than the specified size, then it will be uncomfortable for buyers to walk around the sales floor; they will push each other and violate each other's “intimate” space. Therefore, the buyer’s main thought will be to leave this store, since he is not comfortable in it.
5. Grouping . Correct grouping greatly simplifies the problem of choosing a buyer. It becomes much easier for him to find the product he needs and get information about it by studying the packaging. Only if this does not satisfy him will he call a seller or consultant.
An effective grouping must satisfy the following requirements: attractiveness and interchangeability.
Maximum attractiveness – dedicated, clearly visible blocks of products. They allow the buyer to quickly determine where the desired product category is located.
Maximum interchangeability – interchangeable goods should be located nearby, which will allow the buyer to quickly find an alternative to the desired product.
This criterion can also be applied to household appliances. For example, buyers choose a TV based not on the brand, but on the diagonal size. If a person has already decided on this indicator, then he does not need a TV of a different size; therefore, in the corresponding block with a given diagonal, different brands and designs can only be presented. Models with a different diagonal will need to be separated into other blocks.
6. Additional sales locations - This is a springboard for wars between suppliers, since they are a source of large profits. Additional sales points are used to attract buyer attention to a product outside the product category block.
When registering an additional point of sale It is important to follow the following rules.
1. The priority place in the hall is located where a person either makes a purchase decision, or in the place where he is forced to stay for a relatively long time (for example, the checkout area, the area of durable goods).
2. Limited number of SKUs. No more than 1–2 product SKUs should be presented at an additional point of sale. A person should not have a problem choosing one product item. If the buyer sees an additional place for selling the goods he needs, then there is no need to provoke him to think long and hard.
3. Remoteness from the main place of sale. The additional point of sale should be located so far from the main one that it is not entirely convenient for the buyer to return to the main display (where he may want to choose a competitor’s product).
4. Duplication of products. At an additional point of sale, it is advisable to duplicate products, and even better to ensure a maximum stock of the product, designed for higher demand.
7. Product placement on the shelf. The buyer should, without effort, find the product he needs on the shelf space and understand how he will use it. Therefore, it is important not only to provide the product with the necessary information, but also to provide it with additional materials that allow the buyer to imagine how it will look during its use (mannequins, catalogs, interior modeling). It is for this purpose that furniture showrooms create an imitation of a real kitchen, with a certain decor and kitchen utensils, to demonstrate the benefits of products.
The buyer should always be sure that when he comes to the store, he will find all the products he needs (depending on the specialization of the store). If this is a grocery supermarket, then it must have bread, meat, semi-finished products, drinks, etc. Moreover, they must be as accessible as possible as the buyer moves in the sales area. In order to make this path easier, you need to use indicators of product categories, various navigation pictures and drawings, and beacons. The use of such tools will ensure maximum independence for buyers and will largely free sales staff from consulting on these issues.
When using pointers It is advisable to place photographs or drawings of product groups on them. In the description of the product, it is important to indicate its advantages and priority consumer characteristics. The list of properties that are important to the consumer must be consistent with the real opinion of the buyer. If, when choosing an iron, the buyer is guided by the following indicators: brand, presence of a steamer, energy intensity, presence of additional functions, then on the price tag or information sheet they should be indicated in the same sequence. Thus, the buyer, having glanced at this text, will immediately determine whether this product is suitable for him or not.
It often happens that, despite the efforts of the sales staff and reasonable prices, customers still feel uncomfortable and want to leave the sales area quickly. What is the reason? You need to decide on the criteria for comfort.
To the factors that shape comfort, These include lighting, design of the sales floor and its attributes in a corporate style, easy navigation, smells, uniforms of sales personnel, availability of rest areas, and sound. To create comfort and coziness in the sales area, luxury clothing stores play classical music, listening to which, customers relax and are in no hurry to leave the store. Sportswear stores use dynamic music that matches the style and prompts quick purchasing decisions.
Lighting of the trading floor, design of commercial equipment should also be executed in the same corporate style of the company and emphasize the advantages of the product. Using this technique helps to “accustom” the buyer to the corporate combination of colors and fonts, and after a while he will automatically recognize the company’s products on the shelves.
Similar brand association companies are seeking not only in the field of trade and production, but also in the b2b sphere, for example, cellular operators. The Beeline brand in its black and yellow design is represented on a huge number of attributes, from clothing to kitchenware. That is why almost every resident of Russia associates this color combination with the Beeline brand and, accordingly, the company and its products.
Sound accompaniment of the purchasing process, as noted above, it also plays a big role in stimulating sales and is a merchandising tool. You can note Several rules in the selection of sound accompaniment.
1. Music should not be too loud. Unusually loud sounds irritate the buyer and arouse the desire to leave the room in which they are heard. Therefore, the music should not be loud, but also not strain the ears, otherwise the buyer may be distracted by trying to hear what is being sung in the song.
2. Music should be melodic and non-aggressive. Even sporting goods stores, when selecting music for sound, try to avoid aggressive notes and melodies. Calm and medium tempo music calms the buyer, makes him move slower, relaxes him, and increases his propensity to buy.
3. It is desirable that the music selection contain melodies that are classic in a certain style. The latest hits of music competitions may be unknown to some or irritate some buyers.
4. In order to make the optimal selection of music, find out from your consumer what he listens to and try to take into account his preferences.
We must not forget that seller – continuation of equipment. Vendors must wear a uniform that distinguishes them from ordinary visitors, using corporate colors and, preferably, a company logo. Sewing a uniform and putting the salespeople in it is an important task, but making sure the uniform is always in a clean and tidy condition is even more important. A dirty and torn uniform causes irritation and hostility among the buyer, which is undoubtedly projected onto the company to which it belongs.
Labels, tags, shelf talkers and similar attributes indicate quality, price and other characteristics, highlight the product and encourage customers to purchase it. Thus, make sure that they are bright, memorable and effective.
Various coupons and vouchers for gifts from the company, which can be attached to the product or located next to it on the shelf, also encourage the buyer to make additional purchases and help increase demand for the product.
When developing your display, make sure that the main product is accompanied by complex sets. Some shoppers may want to buy a set of products, and so this kind of product ensemble may come in handy. Also remember that it is much easier to convince a buyer to buy several products at once than to come back for the product again.
If the buyer seeks advice from the seller, then these recommendations should not be too intrusive, since not many people like to have a product imposed on them. Therefore, it is necessary to conduct training with sales personnel on the subject of their work with customer requests and constructing an appropriate conversation.
In order to create a feeling of high demand for a product, you can use a merchandising technique such as "caries effect" . Its essence lies in the fact that an empty gap is left in the display of a certain product, either in a central place or close to the center. One gets the impression that this product is popular and is actively purchased by store visitors. Therefore, there is a desire to purchase it as well.
You can also use another merchandising rule in your practice, which is called "borrowing popularity": Products should occupy space on shelves in accordance with their sales level. Therefore, place products with a low sales indicator in the middle of the shelf, and with a high one - at the beginning and end of the row (thus, being surrounded by strong products, weak products receive additional attention from buyers from them).
Placing the product at eye level significantly increases its sales (according to various estimates by 70–80%). Therefore, this place is the most priority and expensive.
The use of branded price tags, shelf talkers and labels from manufacturers significantly improves the image of the store and product.
Obviously, buyers are more willing to choose goods whose price is clearly visible (obviously, thanks to our mentality, we are embarrassed to ask for a price that we can’t see well or not see at all, and approaching a device that reads it is generally a problem). Therefore, price tags need to be placed exactly under the product to which they correspond, and to ensure maximum accessibility of this information for “modest and shy” buyers.
Demonstration stands, posters, as well as labels, tags etc., provide an additional opportunity to tell potential buyers about your products, their competitive advantages and help them decide that your product is exactly what they need.
Can you suggest the following algorithm for organizing a merchandising management system, following which, achieving the set goal is possible without the expenditure of serious effort.
1. Development of a store positioning concept: for whom the goods are sold, for what customers the store even exists.
2. Identification of target customers, segmentation, identification of major and minor groups.
3. Determining the behavioral characteristics of the target buyer.
4. Development of merchandising standards, planograms and determination of shares of brands, product groups, categories.
5. Direct placement of goods on the shelf.
6. Control over compliance with merchandising standards.
7. Monitoring merchandising performance indicators and observing consumer behavior.
8. Changing standards and planograms.
POS materials, depending on their functionality, are divided into POSM advertising and POSM information. TO advertising POSM include materials advertising a specific product or brand, as well as equipment and devices that perform an advertising and demonstrative function.
Product manufacturers are generally interested in highlighting their products and placing promotional materials. There are a few simple rules to remember when placing POSM.
1. Advertising will be effective only when placed on no more than 15–20% of the total area where goods are displayed. An oversaturation of advertising materials confuses the consumer and does not achieve its goal - highlighting one product.
3. Information POS materials are placed to provide the consumer with important consumer information about the company’s products, services, department locations, etc.
Types of POS materials:
> signs;
> floor stickers;
> price holders; shelf stickers and posters, wobblers;
> wall posters;
> framework systems;
> racks for printed products;
> auxiliary accessories;
> additional layout.
5.5. What kind of advertising is good?
> find consumers (distribute through available communication channels);
> be understandable to the consumer (the information message must be understandable);
> be pleasant (not cause irritation and aggressiveness);
> be timely (provide information about relevant and available products);
> be memorable (information messages and slogans should be easily remembered by the consumer and evoke associations with the product or manufacturer (seller)).
If an advertisement meets all the above requirements, then it can be called good. However, this is not exactly the indicator that businesses should strive for when developing and placing advertising. Advertising must be effective and bright. This is ensured by the presence of extraordinary creative ideas, the use of creative plots, and humor. Advertising must evoke certain emotions - this is the key to its effectiveness.
Advertising effectiveness assessment involves determining the ability of an advertising message and an advertising medium to convey certain advertising information to the target audience or to form a desired attitude towards a product (service) or company for the advertiser.
Most often, to evaluate effectiveness, the increase in sales volume (or profit) obtained solely as a result of advertising events is determined. And this is despite the fact that in practice the reporting period is taken to be the period of the advertising campaign, taking into account costs and sales growth accordingly.
However, as a rule, after an advertising campaign has been carried out for some time, there is also an increase in buyer interest in the product, the so-called “exhaust”, which can also be accompanied by an increase in sales volumes and increased loyalty to the product and the company.
The preliminary stage of calculating economic efficiency is determining the profitability of advertising events, showing the ratio of profit received to costs. It is determined by the formula:
P = P * 100 / Z,Additional turnover is calculated using the formula:
Td = Tc * P * D / 100,Тд – additional turnover under the influence of advertising (in value terms);
P – increase in average daily turnover for the advertising and post-advertising period (in%);
D – number of days of accounting for turnover during the advertising and post-advertising period (in days).
Widely used in practice method for determining economic effect (E):
Нт – trade markup, margin (as a percentage of the selling price);
We can offer several ways to calculate advertising campaign performance indicators:
> the “implementation” indicator, defined as the ratio of the number of people who remembered the advertisement to the number of people who did not remember it;
> indicator of “involvement” in consumption, which is defined as the difference between the number of buyers for every 100 people who remember the advertisement and the number of buyers per 100 people who are not familiar with the advertisement.
The degree of attractiveness of outdoor advertising can be determined by calculating the ratio of the number of people who paid attention to advertising media during a certain period of time to the total number of people who passed by the advertising medium during the same period.
5.6. Participation in exhibitions and fairs
Exhibitions and fairs are effective and popular sales promotion tools.
Exhibition is an organizational event where you can demonstrate and present the company’s products and services. Exhibitions can be either periodic (annual, quarterly, etc.) or situational (timed to coincide with an event, for example, Trade Day). Exhibitions have a distinct industry character, i.e. they involve enterprises from the same industry or market.
Purpose of participation in the exhibition – demonstration of the product portfolio and its development potential, informing about the company, collecting information about competitors. Often, after participating in an exhibition, a company defines new horizons and directions of development for itself, begins to cooperate with new partners, and identifies new consumer segments for itself.
Participation in the exhibition is in many ways an image event. You need to clearly understand that not only your competitors will probably be present at the exhibition, but also partners, intermediaries and, of course, consumers. That is why the information that the company will present must be analyzed from the point of view of safety for the company and importance for all these categories of participants.
Need to prepare visual materials, product samples, catalogues, which can attract attention and which can be distributed to everyone. Souvenir products, which carry manifestations of corporate identity, play a major role in shaping the image at exhibitions.
If a company has the opportunity to participate in exhibitions, then it should take advantage of it. Companies that are actively developing their own exhibition activities, as a rule, are able to demonstrate their own competitive advantages and do not suffer from a lack of clients. Moreover, it is obvious that they are aimed at long-term and successful development.
Trade fairs is an organizational event, the purpose of which is not only to demonstrate the company’s products, but also to conclude contracts. Fairs are held on an annual basis and attract a large number of consumers.
At fairs, consumers have opportunity to taste the product. Accompanying elements of the fair are entertainment events: concerts, performances of ensembles. At the fair you can not only look, but also buy.
Fairs also have a pronounced image focus, but are mainly focused on popularizing the product among consumers.
Organizing a company’s participation in exhibitions and fairs is an important and responsible task that is best entrusted to professionals. In modern conditions, the organizers of these events offer their services to assist in preparing a company for an exhibition or fair, producing souvenirs, promotional materials, etc.
Thus, The company's participation in exhibitions and fairs provides the following advantages:
> demonstration of goods and services;
> providing interested parties and companies with information about the company;
> drawing attention to goods and services;
> obtaining information about market development trends and competitors;
> formation of a positive image;
> product positioning;
> search for profitable partners;
> conclusion of transactions;
> identifying potential consumers and partners.
Organizing participation in exhibitions is a complex multi-stage process, the implementation of which is best left to specialists. However, if lazy marketers want to do this on their own, there are a few important issues that need to be addressed first.
1. Determine the goals of participation and correlate them with the profile of the exhibition. If your goal is to find new suppliers, then it is better for you to register as a visitor or guest to an exhibition in which suppliers are participants. If the purpose of the exhibition is to find new clients and demonstrate your own advantages, then you need to declare participation in an industry exhibition or fair.
2. Prepare demonstration materials: catalogues, prospectuses, brochures, leaflets, presentations and souvenirs.
3. Send invitations to your clients and partners.
4. Book an exhibition space.
5. Ensure maximum visibility and accessibility of exhibition materials to exhibition participants.
By following the above tips on using lazy marketing tools in the field of promotion, a company can significantly increase its own competitiveness with maximum effect.
I. Introduction.
“How to bring a product to market
II. Modern methods of product promotion
2.1. Internet – as a virtual market for goods and services
2.2.Exhibition is one of the methods of promoting goods
2.3. A strong brand is the main tool of competition
2.4. Franchising
2.5. Telemarketing
2.6. Merchandising - the art of selling
2.8. Success in business – success in the market
III. Methods of product promotion used at the enterprise "LMZ-STEMA" LLC
IV. Conclusion
List of used literature
I. Introduction.
How to bring a product to market.
In modern conditions, the process of promoting a product or service to a market in which there are many similar goods or services from domestic competitors, as well as imported ones, is costly, time-consuming and complex for many companies. And marketing services use various methods of marketing communications in their activities in order to promote enterprise products in modern markets.
Marketing communications – is the constant management of the promotion of your activities to consumers and clients with the aim of:
1. Inform potential consumers about your product, services, and sales conditions;
2. Convince prospective consumers to give preference to these particular products and brands, to make purchases in certain stores, and so on;
3. Motivate promising consumers to act without postponing the purchase for the future.
Marketing communications are divided into personal and impersonal communications. Personal communications include personal selling and public relations. Impersonal communications include advertising and sales promotion activities.
Modern methods of product promotion also include the Internet, Branding, Franchising, Telemarketing, Merchandising, Exhibitions, Advertising and other methods.
In this work, I will describe some of the modern promotion methods used in modern market conditions, as well as methods for promoting enamel cookware produced by LMZ-STEMA LLC, AK LMZ OJSC
II. Modern methods of product promotion.
2.1. The Internet is like a virtual market for goods and services.
The Internet is a new, fastest growing and incredibly attractive virtual market for goods and services for any type of business. Having absorbed the characteristics of many traditional means of communication and, at the same time, not being their sum, the Internet is not a copy, but an alternative to the real world. The revolutionary impact of the Internet on modern society, including marketing, cannot be overestimated. Remaining the fastest growing technology, the Internet is fundamentally changing established ideas about the practice of marketing, and new horizons are opening up for marketers. Carrying out marketing activities via the Internet is on average a quarter cheaper than using existing forms and methods. Combining the functions of a mass communication medium, a means of interpersonal communication, a financial transaction tool and, in part, a distribution channel, the Internet is attracting more and more users from all over the world, which represents an attractive commercial potential for any type of business. According to the forecast of the American research company Forrest Research, the number of Internet users by the end of 2003 will reach 60 million people - 21 million more than there were in 1999. The main characteristic of the Internet is interactivity, or in other words, the possibility of feedback/interaction. The interactivity of the Internet and its technical capabilities to store unlimited amounts of information create ideal conditions for searching, collecting, organizing and distributing information, including commercial information. But the availability of the Internet is more limited compared to traditional means of communication. The Internet is a collection of websites that are created by various companies in order to organize access to these sites for numerous Internet users. Companies can create on the Internet both virtual stores, which are functionally no different from regular ones, and representative sites of an advertising and informational nature.
Online store - characteristics.
Relevance of Internet fairs.
All over the world, along with traditional fairs, Internet fairs (virtual fairs) are actively developing.
Traditional fairs are expensive events. In the United States, direct costs associated with traditional fairs annually exceeded $53 billion. Over 80% of the total costs of a company’s participation in such a fair are related to the venue, which includes the rental of fair space, the services of organizers, the installation of its pavilion and its ongoing maintenance, the work time and travel expenses of its own employees, as well as transportation costs. Considering these circumstances, in developed countries firms give preference to Internet fairs and this direction has gained great popularity. Now in our country, enterprises and entrepreneurs have the opportunity to participate in Internet fairs. The MITS portal is one of the most visited in Russia - more than 1 million visits per year. Therefore, participation in All-Russian Internet fairs becomes very relevant. In addition, MITS is also conducting an additional advertising campaign, which certainly increases interest in this project. Thus, participants in these fairs have a real chance of expanding the market for their products, since more than 1 million visits within one year provides a very high probability of success. If an enterprise does not participate in these fairs, then it would be incorrect to say that this enterprise is taking effective measures to stimulate the sale of its products.
Advantages of All-Russian Internet Fairs.
In the system of the Interregional Internet trading network, for the first time in our country, fully functional All-Russian Internet fairs began to function, where it is possible to conclude transactions electronically, using an electronic digital signature.
According to the current legislation of the Russian Federation, in the MITS system, an electronic digital signature in an electronic digital document is equivalent to a handwritten signature in a paper document certified by a seal. MITS uses FAPSI-certified tools for cryptographic protection, including electronic digital signatures. In addition, MITS has the appropriate FAPSI licenses.
All-Russian Internet fairs have a number of advantages over traditional fairs:
Participation is ten times cheaper;
There is no need to spend money on stand design;
There is no need to bear the costs of shipping goods back and forth;
No travel expenses;
Possibility of permanent participation at the fair;
Wider opportunity to provide information about the company and products;
Reaching a much larger audience of buyers and participants;
Access to the fair 24 hours a day, seven days a week, and regardless of geography;
the ability to agree on the terms of the transaction at any time;
The ability to conclude a transaction electronically, signing with an electronic digital signature in just a few minutes;
The presence of mechanisms to ensure the execution of transactions, which exclude the possibility of dishonest fulfillment of obligations, both on the part of the seller and the buyer;
The ability to optimize cargo transportation using the capabilities of the logistics service, etc.
Traditional fairs allow potential consumers to explore a wide range of possible sellers and their products in a relatively short period of time. This is achieved by having private traders gather together in one place and at one time. Online fairs expand this opportunity by allowing them to be held continuously. The continuity of Internet fairs largely compensates for the lack of personal meetings with potential consumers that are typical for traditional fairs. In order to become a participant in the fair and place your virtual stand (for a period of 1 year), the client must pay 300 USD. That is, without discounts, and the client receives a personal electronic digital signature.
Online marketing requires a fundamentally new approach and a re-evaluation of traditional marketing tools and strategies. One of the main differences in Internet marketing is that Internet users can control the flow of information and advertising to a certain extent. They have the opportunity to choose what they like, “skip” what does not interest them, and are no longer passive viewers and readers. Understanding the characteristics of the Internet environment makes it possible to implement marketing strategies more effectively and at lower costs.
2.2. An exhibition is one of the methods of promoting goods.
Thousands of businesses present and sell their products at trade shows and fairs, allowing them to demonstrate products, offer relevant information, answer questions, compare competing brands, place orders and generate new leads.
A fair is a large exhibition where manufacturers of various goods in a given industry present their products to buyers, as well as other industry representatives. Trade shows and other special events are especially good for public relations purposes such as creating goodwill for a company and providing information to the public. An ideal exhibition should be colorful, spectacular and unusual. Spectator participation is encouraged whenever possible. If viewers can press buttons, look at pictures and ask questions, then the exhibition will be a great success. Businesses also use exhibitions to promote their products. Exhibitions are inaugurated and may include museum exhibits, historical displays, prototypes of new products such as new cars, models of buildings and other structures.
Companies spend more than $9 billion annually on trade shows, and trade shows generate over $70 billion in sales annually. Some companies, especially those in high-tech markets, devote a large portion of their marketing budgets and communications planning efforts to trade shows.
Exhibitions allow you to show products to your target audience, create trade prerequisites for subsequent contacts with the help of sales personnel, provide a large amount of information about competitors and help build relationships. The atmosphere of such events tends to be relaxed; Free goods are distributed and many business parties are organized. In an environment where all companies are trying to provide a clear picture of their products to potential customers, competitors can easily compare quality, features, prices and technology.
The design of stands and the training of stand staff are important factors for the success of an exhibition. The design of many exhibition stands can use, for example, interactive technologies - audio and video texts, CDs, telephone communications, corporate television networks, computer conferences and virtual reality. Chrysler has used the Jeep simulator at auto shows to increase traffic and showcase the impressive design features of its all-terrain vehicles. The stands are usually staffed by the company's best sales representatives, who make personal contacts with senior executives representing various intermediary agencies. It is important that the costs of exhibitions are lower than the costs of advertising or personal calls to close deals.
To attract attention, trade shows must rely on multiple media, such as print advertising and direct mail. Souvenirs are also widely used - before, during and after the exhibition - to attract potential buyers, increase the degree of fame and recall of the company, and also increase the willingness of invitees to do business with it. Here, properly conducted pre-marketing is especially important and serves as a guarantee of the success of the exhibition. Research has shown that a pre-exhibition incentive gift can almost triple exhibition attendance, just as much as a pre-exhibition invitation. Creative competitions, such as drawing competitions, with interesting prizes, also stimulate stand attendance. Pre-show mailing before the exhibition can, in conjunction with the competition, encourage people to linger at the stand.
2.3. A strong brand is the main tool of competition.
Today, a situation has developed in regional markets in which many domestic producers, having sufficient potential to enter broader interregional and national sales markets, continue to move along the path of least resistance. Producing very competitive products, enterprises use price as the main tool in the struggle for a place in the market. Products are sold at the lowest possible price and are aimed at a group of price-conscious buyers who purchase goods on the basis of the cheapest they can find and do not pay attention to quality. This strategy leads to the fact that the position of the product on the market becomes precarious - a cheaper competitor may appear at any moment, and in addition, the number of such buyers is decreasing from year to year. When attempting to enter the markets of other regions, the manufacturer inevitably faces another problem - the presence of local competitors who are unlikely to want to give up their positions and, in turn, also have plans to expand sales markets. The enterprise finds itself in a situation that it cannot control - as soon as a strong manufacturer appears, the product very quickly loses its gained market share.
To prevent this from happening, it is necessary to begin market promotion by building a brand. A strong brand is the main tool for competition in modern markets.
Trademark – this is a combination of a trademark (the name of the product and its visual design) and a range of associations that arise in the consumer when mentioning this product. Building and maintaining a positive image of a product in the consumer’s mind, i.e. creating a successful brand, allows manufacturers to solve four main problems:
- Compete and take a strong competitive position in relation to other manufacturers in your region;
- Extend your product to other regions and successfully compete with brands already present in these markets;
- Enter the markets of large cities and, first of all, the Moscow market, since up to 30% of Russia’s total trade turnover is sold only on the Moscow market;
- Sell products with a higher profit level by positioning the product in a higher price segment.
Today, many companies have already realized the need to create their own brands, but very few of them represent the process of creating a brand and bringing a product to the market from start to finish. The most important condition for successful penetration into retail chains of such regions is, firstly, a well-thought-out naming and packaging system, secondly, high-quality packaging and, thirdly, systematic advertising support for the product. Sporadic advertising “outbursts” do not bring long-term results, since the effect of advertising wears off very quickly. One, even a very successful advertising campaign in highly competitive markets can ensure the successful launch of a product on the market, but will not decide its fate in the future.
The current level of development of interregional and national markets provides for the fact that professionals should be involved in creating a trademark and introducing a product to the market. When a commodity producer tries to make do on his own, this is almost always visible to the naked eye and can be compared to the appearance of a homemade car on the streets among mass-produced cars. Low quality design and packaging, unprofessionally developed, sometimes funny names - all this does not inspire buyer confidence in the brand. In modern competitive markets, the consumer no longer perceives a product by its internal merits. Efforts must be made to convince consumers to try it. Those manufacturers who manage to quickly understand this achieve noticeable success. A professionally developed and implemented product promotion strategy allows, at minimal cost, to successfully “throw” the product into the highest price category not only in the markets of the Central region, but throughout Russia and sell it with a significantly larger share of profit compared to unlabeled goods without a trademark.
Today we are witnessing a turn in public consciousness towards domestic brands. Moreover, this trend is based not only on nostalgia for the “good old days” or on the low purchasing power of the population. To a large extent, consumer preferences of Russians are formed under the influence of conscious patriotism and rational choice of buyers. The quality and packaging of many Russian goods have undergone significant changes; products are produced that are not inferior to the best foreign analogues; the approach to working with a trademark has changed. The word brand is often equated with “trademark,” although brand is a more capacious term that includes other, broader concepts.
Trademark is a name, term, symbol or special sign that allows one seller's goods or services to be identified from those of another. A trademark is the proper name of a product, it is indicated on the packaging.
Trademark is an officially registered trademark.
Brand – not just a registered trademark, it is a successful, popular trademark with a stable circle of loyal consumers. The popularity of a brand implies that it is known and used by a significant number of people.
In the Russian market today, real patent wars are being waged over trademarks - well-known and not so well-known. The mechanism for resolving disputes over trademarks in Russia is just being developed. An important issue is the possibility of exclusion from competitors producing the same product.
So, what should a good brand “be able to do”? She must:
- emphasize the characteristics of the product - its benefits, properties, use, action, result of use;
- be easy to pronounce, write, remember;
- be original, effective, attract the attention of potential consumers;
- be conceptually suitable for new products that may be added to the product line;
- be patentable in order to prevent its use by other manufacturers.
How advisable is it to create trademarks if this increases the costs of packaging, labeling, advertising, legal protection, and the risk of not satisfying the consumer increases? A trademark gives the seller several advantages:
It simplifies the process of placing orders and delivering products. Thus, Anheuser-Busch receives a specific order for one hundred cases of Michelob beer in 0.33 liter bottles, and not a request for “some of your best beer.” Moreover, the seller will easily correct the error if he completed the order incorrectly, or will deal with the validity of complaints about poor product quality;
A trade name and mark provide legal protection for the unique qualities of a product, which competitors could otherwise copy with impunity;
Trademarks give the seller the opportunity to attract a sufficient number of buyers. Brand loyalty provides the seller with some protection from competitors and increases the degree of his control over the planning process of marketing programs;
Trademarks help the seller to clearly segment the market. Instead of selling one brand of laundry detergent, P&G could offer 8 brands, targeting specific market segments seeking different benefits;
Strong brands help strengthen corporate image, simplify the introduction of new brands and ensure the favor of distributors and consumers.
Obviously, distributors prefer to work with manufacturer's brands that make goods easier to handle, guarantee a certain standard of quality, reinforce buyer preferences and simplify supplier identification. Consumers expect brands to help them identify quality differences and improve shopping efficiency.
2.4. Franchising.
Franchising (from the French franchir - the right to freedom to conduct any activity) was invented in medieval England. The monarchs of Foggy Albion had a very widespread tradition of granting the nobility the right to collect taxes, hold fairs, organize bazaars and participate in other equally profitable enterprises. In return for royal favor, subjects were obliged to give part of the proceeds. Today, franchising is a business organization in which the owner of a brand (franchisor) transfers to an entrepreneur or company (franchisee) the right to sell a product or service under its brand. Usually, along with the brand, the franchisee is also provided with the technology for selling goods or services. In return, the franchisee undertakes to work according to predetermined laws and business rules that are established by the franchisor. In 1851, the sewing machine manufacturer Singer began trading through financially independent firms that received exclusive rights to sell and service sewing machines in a certain territory. In 1898, a similar system was developed by General Motors. According to the agreements concluded by the company with dealers, the latter did not have the right to sell cars from other manufacturers. Moreover, dealers were required to invest their own money in service and advertising. Coca-Cola, Pepsi and 7-UP went even further. They began to use franchising in production. Regional partners of non-alcoholic monsters bought the concentrate, branded bottles and bottled the drinks on site. This was much more convenient than transporting bottled liquid from one end of the country to the other. The system is still in effect. In the 1930s, franchising was first used in the trade of petroleum products.
Today, perhaps, there is no area where franchising is not used. According to its system, hotels and shops, laundries and dry cleaners, car service centers and restaurants, fast food cafes and beauty salons, repair shops and health centers, entertainment clubs and travel agencies are opened. In total, according to the International Franchising Association, 70 types of activities are subject to licensing. Today, franchising is actively used by more than forty major companies. In the United States alone, franchise companies sell $1 trillion worth of goods and services annually. dollars, controlling 40% of the market.
The phenomenal success of franchising in developed countries is explained by the fact that it is beneficial for both franchisors and franchisees. The technology is interesting to franchisors because it brings money for business development: franchisees pay an initial fee, make periodic payments (royalties), pay for additional services, and also help increase the franchisor’s turnover if they sell products distributed by it. Another advantage of franchising for the brand-holder company is the increase in brand awareness. In addition, franchising can help save on marketing costs. Franchisees receive technology that works and brings money, a brand known to customers. In the largest Russian chain of consumer electronics, Eldorado, which has 320 retail outlets in 206 cities across the country, the introduction of franchising has contributed to an increase in the network's coverage and turnover. The decision to open franchise stores was made at Eldorado in the winter of 2001. It was decided to cover cities with a population of 48 to 200 thousand inhabitants. There are about 500 such settlements in Russia, and the network occupied by larger facilities did not reach them. Under the terms of the franchise agreement, the franchisee purchases household appliances and electronics from Eldorado at cost. The franchisor earns from royalties that each franchisee is required to pay - 25% of the difference between purchase and selling prices, or 5% of turnover in purchase prices. The terms of the agreement turned out to be quite acceptable. In two years, thanks to franchisees, the network increased by 125 stores. Franchisees working with Eldorado, famous for its low prices, can significantly improve their business performance. As one of the network’s partners noted, before cooperation he only had enough money to live, and a year after the conclusion of the agreement, he was able to increase the area of the trading floor - up to 120 square meters. m. - and equip a warehouse.
Franchising is less risky than traditional business schemes. Only 14% of US franchised firms go out of business within 5 years. For comparison, the market average bankruptcy rate is much higher than 65%.
However, franchising also has its disadvantages. Franchisees are effectively independent from the business owners. It is difficult for the franchisor to track transactions concluded by the franchisee that could harm his business. And, having traced it, he cannot immediately break off the relationship. An agreement is concluded between the franchisor and the franchisee, in which, among other things, the duration of cooperation is discussed. For some time, the brand holder has to put up with the fact that his brand is being harmed. McDonald's, one of the world's largest franchise networks, did not dare to launch a similar project in Russia. There are so many fears for your brand. The main disadvantages of working under a franchisee's license are that the franchise agreement significantly limits his freedom. The company must operate according to strict technology in a fixed territory. A step to the left, a step to the right are interpreted as an attempt to escape, a jump in place is an attempt to fly away.
The franchise agreement usually includes a definition of the franchisor's "intellectual property." Intellectual property refers to a trademark, know-how, special details of the production process, trade and production secrets, as well as any other information that the franchisor is obliged to transfer to the franchisee. Most franchise agreements stipulate a license under which the franchisee can use the know-how, trademark and business system of the franchisor. The franchisor, along with a license to open stores, can transfer information about trading technology and provide specialists for its implementation.
In Russia, the emergence of franchising dates back to 1993, when the well-known Baskin Robbins sold its first franchise (franchise package - operational manuals, standards). Russian companies followed the foreigners. The name began to be sold by shoe stores "Econika", fast food enterprises "Rostik, s", "Teremok - Russian pancakes", "Yum-Yam", gas stations LUKOIL, TNK and some others.
However, franchising has not become widespread in Russia. Experts cite several reasons for this. Firstly, Russian legislation does not contain the concept of “franchising”. The use of the concept of “commercial concession” significantly complicates the transfer of intellectual property. Secondly, Russian poverty hinders the spread of franchising. To operate under a license, a starting capital of about 100 thousand dollars is required - considerable money for most entrepreneurs. In the West, franchisors practice lending to franchisees through partner banks. According to expert estimates, in England, subsidies for franchisees reach 80%. In Russia, most licensing projects do not provide for concessional loans. The implication is that businessmen must have their own money. Thirdly, many franchises sold in Russia are not yet ready for mass use. Russian companies sell schemes that are “raw” in technology, while Western companies sell schemes that are not adapted to Russian specifics. Buying an untested business is very dangerous. This was once again proven by the history of the Big Boy fast food chain, which opened its franchise enterprise in Bangkok several years ago. Local residents perceived the food place as a new temple. They brought rice and incense to the image of Big Boy - a plump boy with a hamburger in his hands. Big Boy was perceived as an unconventional image of Buddha.
2.5. Telemarketing.
Telemarketing (telephone marketing) is the use of telephone and telecommunication technologies in conjunction with database management systems to sell goods and services by telephone, organize call service centers, conduct marketing surveys, collect and process the necessary information.
According to many experts, at present, telemarketing in Russia has not yet emerged from its infancy. Real call-centers have just appeared (companies with special equipment, a large number of telephone lines and a staff of specially trained operators). So far, telemarketing is used in full by either large Russian or Western companies. Medium and small firms in most cases use their own employees or invite “homeworkers” for this work. In this case, the lack of training of operators is compensated by low costs, but in the end it is better to use the labor of professionals.
All telemarketing can be divided into inbound and outbound. In the first case, these are most often “hotlines”, by calling which you can find out answers to your questions about the goods/services of a particular company. In the second - telephone sales and some kind of questionnaire. Or. Simply put, calling potential customers in order to get them to buy something.
The client today is a rather stubborn and distrustful creature. Often you have to not only make a sale as such, but also simply break stereotypes, change a person’s opinion about the world around him, smooth out rough edges and avoid direct insults addressed to him. And this despite the fact that it all comes down to breaking the client’s resistance and convincing him that your company’s products are good in this and that way, but competitors cannot provide him with all this, even if they want. Moreover, the offensive takes place on several fronts at once: a mailing list is sent with the company’s offers, an advertising campaign is carried out on a local television channel, stickers are posted on entrances, and potential clients are constantly called. However, failures are quite common. This is explained not only by the desires and whims of the client, who, of course, is always right, but sometimes without a twinge of conscience takes advantage of his opportunity to show character, but rather by the professional qualities of the operator, his ability to find an approach to a person and interest him. Sometimes the operator will be able to make candy out of nothing and sell it to the most distrustful client. Each client must have a special approach. However, there are techniques that are the same for everyone. The client likes to speak beautifully, but everything is to the point. But achieving this, and even in a free conversation, is quite difficult. For successful negotiations, specialists need to not only study the psychology of the person on the other side of the receiver, so that the telephone cannot become an instrument of torture for the client, but also be professionally trained on issues related to the company. To learn how to sell, you need to know what exactly you offer; for this you need, for example, to familiarize yourself with the history of the enterprise, the rules for providing services to individuals with all sorts of calculations, and the direct technologies for providing services. The professionalism of employees determines the face of the company. Telemarketing specialists in companies where this service operates make up the client base. It consists of the addresses and telephone numbers of potential and existing clients, as well as information that needs to be known to maintain business relationships: services, contracts, payments, debts, etc. Telephone sales are becoming increasingly common, and the average representative of society is gradually starting to get used to it. According to experts, the day is not far off when people in Russia will calmly perceive telemarketing as a type of business cooperation, and not express their dissatisfaction with the phone ringing at the wrong time. Of course, to achieve this goal, you need to spend a lot of effort, train first-class specialists who are well versed in psychology, constantly purchase the latest equipment, make workplaces even more comfortable, provide decent salaries and constantly expand the client base. It is under these conditions that telemarketing can develop in Russia to the level of international standards. Especially if these are the standards of business communication over the phone.
There are five stages in telemarketing:
1. Establishing contact. The main task: making acquaintances, “building bridges” and establishing positive relationships. The main tool: voice and positive attitude. At this stage, it is not so much important what to say, but how to say it. At this stage, it is necessary, first of all, to interest the client to continue the conversation.
2. Needs reconnaissance. The main task: to find out what the client needs from what you have. The skill of telemarketing at this stage lies in the ability to ask the right questions and listen to the client. Main tool: It is necessary to use the technique of “Closed” and “open” questions and active listening techniques.
3.Presentation of commercial proposal. The main task: to interest the client and provide arguments in favor of purchasing the product. The basic rule: speak the language of the client’s needs and benefits: present not travel, but sunsets and the smell of the sea.
4. Work with objections. The main task: to remove objections and maintain positive relationships. The basic rule: accept the client’s point of view, compliment his objections.
5. Completion of the sale. The main task: to obtain agreement in principle. The basic rule: create emotional impulses to bring the client out of a state of indecision.
Telemarketing rules.
2. By controlling tempo, rhythm, articulation, intonation and volume of voice, the caller controls the customer's first impression.
4. Refusals over the phone are more common than during personal meetings. You need to accept a refusal calmly: after all, every call brings you closer to your cherished goal. The sale is often made after 3-4 contacts.
5. You need to speak the first phrases slowly, do not immediately pour a waterfall of information on the client - you need to give him time to tune in to the conversation.
6. It is necessary to prioritize calls, rank clients by importance, and understand the purpose of each call.
7. The secretary may be the most important person in the organization for the caller. It is necessary to show him (her) signs of attention and respect.
8. To make a call effective, you need to call at the right time, to the right clients with the offers they need.
9. A lesson must be learned from every conversation with a client. A professional is a person who is always learning!
2.6. Merchandising is the art of selling.
The concept of merchandising comes from the English “merchandising” - the art of trading. Simply put, merchandising is a set of activities carried out on the sales floor and aimed at promoting a particular product, brand, type or packaging, the result of which is always stimulating the desire of consumers to choose and buy the promoted product.
Abroad, the first to use merchandising were the most organized retailers, such as supermarket chains. Moreover, they did not do this for manufacturers of goods. It was noticed that by making it easier to search and select a product, turning the process of selection and purchase into an exciting activity and, thus, increasing the time the buyer spends in the sales area, an additional effect can be obtained.
Subsequently, manufacturers (suppliers) of goods began to use merchandising, as a result of which merchandising also became a tool that provides tangible competitive advantages. Many corporate manufacturers have made merchandising part of their marketing strategy. It is believed that merchandising ideas were introduced into the Russian market by multinational corporations such as Coca-Cola, Pepsi-Cola, etc. However, the first in Russia to use merchandising were retailers - not supermarkets, but market traders such as: “ Kalinka Stockman, Global USA. They specially came to work early in order to arrange the goods, as they said, “beautifully” and attract the attention of customers. Thanks to the advent of science, society also acquired a new specialty - merchandiser. The main task of a merchandiser as a specialist in product promotion in retail trade is to maintain a positive image of his company, ensure favorable placement of products on store shelves, and monitor their constant availability for sale. He also supplies stores with advertising and gives souvenirs on behalf of the company.
The functions of a merchandiser also include adjusting retail prices for goods: he monitors competitiveness, advises sellers on the optimal size of trade markups. In order to complete all these tasks, the merchandiser visits all the stores assigned to him at least once a week (on average, five or more points per day). He records the state of affairs in each of them in a special passport. Based on the results of the trips, the merchandiser submits a weekly report to the company’s marketing department, which reflects changes in the situation in the sales market for this type of product: the presence or absence of demand, prices set by competitors for similar products, etc. Requirements for candidates for this position, dictated by nothing more than concern for the image of their company: presentable appearance, sociability, higher or incomplete higher education (they willingly accept students), age from 20 to 30 years, high efficiency, basic knowledge of English, driver's license category B, learning ability.
There are several rules to remember when using merchandising.
Firstly, it is necessary to organize an effective inventory, that is, the availability of those goods and services that the buyer expects to find in a given store. As a result, purchases from suppliers must be made in proportion to sales. In addition, products should occupy shelf space in accordance with sales levels. This is simply necessary in order to avoid the situation of the lack of best-selling products.
Secondly, the product must be positioned in the most efficient manner. The main (for example, a drinks section) and additional (for example, a rack or display) points of sale must be positioned in accordance with the flow of customers in the sales area. In addition, products should be laid out in such a way that finding the right product is as easy as possible. To do this, you need to create visible blocks on the shelves by brand, packaging and product group.
Thirdly, an effective presentation of the promoted products is necessary. Buyers are more willing to choose products whose prices are clearly marked and clearly visible, so the store must take care of the correct placement of price tags. In order not to mislead buyers, price tags should be located exactly under the product for which they indicate the price.
Merchandising as a science helps to most effectively use the buyer’s space and time to promote a product; it is necessary to arouse interest and even excitement in the buyer. It is very important to ensure the correct placement of advertising materials. There are several general rules that almost all companies use when setting standards for the placement of their advertising materials. In addition to the fact that they must be located directly near the point of sale of the specified product or along the way to it, and must also be clearly visible to the buyer, they must also be relevant (materials for a specific advertising campaign are installed at the beginning of the campaign and withdrawn at its end). It is always necessary to remember that advertising that hangs in the same place for a long time becomes blurred, and the buyer ceases to perceive it. And since the purpose of placing advertising materials is to constantly remind the buyer that he can purchase this product in a given store, the manufacturer has to take care of constantly updating the materials. Keeping the point of sale and the products themselves clean is a very important point that the merchandiser must remember. Not only the level of sales of a given product in a particular store, but also the image of the company as a whole depends on this.
However, it is always worth remembering that success using merchandising can only be achieved through the cooperation of the efforts of the manufacturer, distributor and retailer aimed at improving customer service. Moreover, the manufacturer must constantly improve the assortment, the distributor must ensure the constant presence of goods in the retail network at minimal costs, and the retailer must strive to sell goods of this particular brand that is profitable for him. It is important to remember that successful merchandising is only possible with the participation of all three: manufacturer, distributor and seller, i.e. effective merchandising is, first of all, the result of joint efforts aimed at “winning” the buyer.
It is clear that you always need to start from the store space itself. As a result, store layout is one of the main elements of merchandising. When developing it, it is important to think through methods that stimulate the movement of customers around the sales floor so that they buy more goods than they had previously planned. Stimulating promotion activities are external diversity - the placement of retail equipment, its types, floor level rises, original floor patterns, inclined transitions, information displays, stained glass windows, lighting, smells, sound background, etc. After all, all merchandising is built on human psychology. Knowledge of the psychology of buyers can also increase the efficiency of product display. As shoppers move along the shelves, they are less likely to notice the items at the end of each row. This means that such shelves should contain products in bright, eye-catching packaging, as well as the best-selling product. Here it is advisable to place advertising information on posters, lay out colorful booklets, leaflets, etc. But products from different manufacturing companies that have the same functional purpose must be laid out vertically on the shelf (not forgetting the importance of placing products of the same brand together, within a product group). Moreover, it has been noticed that in stores that have a rich display, goods are sold better. Therefore, sellers must fill and replenish shelves and displays with goods not only before the opening and closing of the store, but also during the working day.
So, merchandising allows you to increase the efficiency of sales, direct the buyer to the desired goal, and the correct layout of the store helps a lot in this. But along with arranging the shelves, you also need to correctly lay out the goods. Moreover, its layout should be based on priority. It is important to remember that even the most popular product, if placed in the wrong place, may remain “out of use”; the buyer simply will not notice it. Priority seats in the sales area are determined depending on the customer flow, that is, on the path that most customers take. Thus, a correctly placed product will always provide maximum benefit to the manufacturer and store. Moreover, you should always remember that in most cases, when planning a purchase, the consumer clearly determines which product groups he wants to purchase (bread, milk, pasta, clothes, shoes, dishes, etc.) Therefore, the store’s assortment can be divided into three groups: goods everyday demand (the purchase of these goods is the purpose of almost every customer visit to a retail outlet), periodic goods (the purchase of these goods is planned once every few visits) and impulse goods (the purchase of these goods is usually not planned). It turns out that one of the most important tasks of merchandising is finding places for the best location of the main and additional points of sale of your product. Moreover, the main place of sale is the place where all manufacturers of a given product group are represented, and an additional place always increases the likelihood of purchasing this product. And the whole task of merchandising comes down to placing the product in the main places as efficiently as possible, while not forgetting about additional ones, which can often help effectively promote a particular product. Moreover, the best-selling items of the product group must be located at additional points of sale. In this case, the likelihood of impulse purchases increases significantly. It is also necessary to monitor the movement of the buyer. Slowing down or speeding up the pace can be achieved by widening or narrowing the aisles between shelves, as well as using music. Slow, calm music creates a more relaxing atmosphere in the store, encouraging customers to take their time and stay in the store. Fast music has the opposite effect - it turns a stroll into a faster pace, which is mainly used during rush hours to speed up the movement of shoppers. In general, the buyer is a picky creature. He needs constant attention and care. Such care can be carried out in different ways. The main thing is to ensure that the struggle for the consumer does not turn into a struggle for survival, which is quite possible given the current state of the Russian market. Until now, many store owners hardly understand what merchandising is. Many of them rely on intuition and their own flair and style. Often such a policy does not justify itself. Of course, it cannot be said that everything depends on well-applied merchandising and an experienced merchandiser working with wholesalers and retailers. However, many troubles can be avoided by using the services of a specialist. He will help you correctly arrange the goods on the shelves, arrange the equipment in the hall so that the buyer has a pleasant and comfortable shopping experience, point out possible errors, place advertising in the right places, i.e., he will do everything to make you and your store successful.
Rarely does any commercial activity, given equal opportunity, involve so little risk. It is difficult to calculate in advance human preferences, character traits, prejudices, likes and dislikes. It is difficult to predict how popular a particular product will be. Advertising allows you to sell it most effectively. Risk may lead to failure, but not to disaster. Losses, if they occur, are small. And their reasons, as a rule, have nothing to do with advertising. Advertising is one of the safest, most reliable types of commercial enterprises that can generate large profits. There are thousands of successful examples. Their diversity indicates the unlimited possibilities inherent in advertising. But thousands of people who need accurate knowledge about advertising, without which they will not be able to achieve what they deserve, still have not fully appreciated its benefits. In order to understand advertising or learn its basics, one must start with the right concept.
Advertising is the ability to sell. Her methods of influence coincide with those used by a good salesperson on the sales floor. Success or failure in both cases is due to the same reasons. Therefore, any advertising issue should be considered through the prism of sales methods.
The only purpose of advertising is to sell goods. Advertising will pay off or not pay off depending on the actual sales figures. Advertising is not a “thing in itself”. She is not meant to show off in public. It is not an auxiliary method for other sales methods. Advertising must be looked at as a new seller. The profit from advertising must be compared with the profit from other methods of sales, and the cost of the effort expended must be compared with the result obtained. The peculiarity of advertising is its scale. Advertising is the seller’s job multiplied. She addresses thousands of buyers while the seller deals with one. And its cost corresponds to its task. People pay about $10 per word in a typical ad. Therefore, every ad should work like a super seller. One seller's mistake isn't worth that much. A mistake in a published advertisement costs thousands of times more. Bad advertising can ruin everything. There is an opinion that an advertisement is a correctly written text. However, literary abilities have the same distant relation to advertising as organizational skills have to the ability to trade. Something else is required: the ability to express thoughts briefly, clearly and convincingly, as a seller should do. Fine words, of course, only harm the cause. Special artistry is also inappropriate. All this either distracts attention from the product itself, or, conversely, the hook is too noticeable from under the bait. All studies show that an attempt to sell causes more resistance, the less it is covered. When the seller communicates directly with the buyer, the patterns are the same as when using printed materials. Krasnobay are rarely good sellers. And good salespeople are unlikely to be able to make speeches from the podium. These are simple and sincere people who know their clients and their needs. The same settings are required for advertisements. In the advertising industry, there is a very simple way to answer any survey. Ask yourself: “Will this help the seller sell his product? Would this help me personally as a seller, face to face with the buyer?” Answering these questions honestly will help you avoid many mistakes.
The main difference between advertising and regular sales is direct contact. The seller's job is to attract attention to his product. It is impossible to ignore the seller in the store. You can simply not look at advertising. However, the seller wastes a lot of time on those customers who will not buy anything. Advertising is read only by those people who themselves strive to find out what we want to convey to them.
The creators of advertising messages try to influence all senses of a potential buyer without exception. First of all, it is vision and hearing. But there are advertising messages containing scents (“trial” perfumes), offering samples of goods that can be touched, which facilitates the process of making a purchasing decision. Moreover, advertisers use almost all known forms of art for the needs of their profession: literature, cinema, painting, photography, music, sculpture. The arsenal of the current advertiser is huge; it includes all modern technologies, from printing to space technology. But, just like a hundred years ago, the effectiveness of an advertising message depends on the creative potential of its creator. First of all, the advertiser needs to conduct a marketing analysis of the situation. You need to understand what it should advertise, who the advertising is intended for, how the advertising object differs from its analogues. Traditionally, the creative field of an advertiser is print advertising and advertisements in print media. The optimal advertising message contains only one advertising idea. Quite often it is possible to express it with a slogan - a short advertising appeal that embodies the essence of a unique product offering. A slogan is an advertising phrase in condensed form that sets out the main advertising offer and is part of all advertising messages of one advertising campaign. This is “dried” advertising text, it is repeated in all advertising formats. It begins to live only when it appears in the mass consciousness of people.
Recently, many experts have noted that the Russian market is becoming more and more civilized (at least outwardly), “marketing”. More and more companies are thinking about the image of their products, attracting expensive branding and advertising specialists. Everyone strives to stand out, everyone tries to create a unique and memorable message to the consumer.
It would seem that advertising has filled everything - television broadcasts, streets, press, transport. But every day new opportunities are found to convey information to the consumer about the exceptional properties of a product or service. And wherever you are, you are surrounded by appeals, slogans and attention-grabbing stories. And people read, absorb, comprehend. They read it everywhere - on the subway or at the bus stop, in their favorite newspaper or supermarket. Advertising is designed to affect a person’s personal interest in solving a problem, in satisfying a need. Advertising is capable of presenting something new to the audience, awakening its curiosity; it informs the consumer about the merits of the advertised product or service and is a modern method of promoting goods.
2.8. Success in business means success in the market.
Success in business is success in the market. Not only production difficulties lead to companies going out of business, but also ineffective marketing. Many people believe that marketing is an art, and in order to manage effectively, you need talent. This may be true, but the art of marketing is based on a certain set of scientific methods and precise rules, which in turn are considered to be starting points and must be known.
Rule #1: 10/30/60. This rule regulates the relationship between the main target groups and the percentage of the marketing budget that should be spent on working with them. So, it is believed that 10% of the budget must be allocated to the share of a group consisting of consumers who are not clients of the company and, according to certain characteristics, do not correspond to the profile of the company. For example, let's take the drug Viagra. It is intended for men aged 40 years and above - this is the main target group; 10% must be spent on those who may become consumers of this product years later. To successfully promote a product on the market, a competent marketing department will allocate 30% of the budget to potential consumers who, for various reasons, are not yet clients of the company, but could well become them. This category corresponds to the company profile. The largest percentage (60%) of the budget goes to the segment of existing customers. This category needs to be stimulated and retained, although it is the smallest in number. The product can be sold to current consumers much cheaper (due to the presence, for example, of “growing” discounts on the company’s plastic cards), but the costs for this segment are recouped much faster than for those markets that the company has yet to conquer.
Rule #2: 1/100. This simple rule is as follows: one dollar spent on communicating with your own staff is equivalent to a hundred dollars of marketing budget spent on the final consumer. Since all the key factors of a firm's competence or success are directly dependent on the knowledge and skills of employees, their morale and goodwill represent the organization's capital. Employees want to work for management that lives up to its claims and takes into account the interests of the entire workforce. Therefore, the head of an organization should always strive to establish strong corporate ties, which are naturally 100% justified. The Japanese remain world leaders in marketing because they are always ready to share the failure of their company or its success together, as a whole team. For them, the recognition of colleagues and the approval of their superiors is much more important than a new position and material reward. At the same time, the Japanese always try to act as a team, without selfish considerations. They are sure that it is better not to say: “I was mistaken.” It’s better to say: “We were wrong.”
Rule No. 3. According to marketing experts, budget allocation for successful product promotion should look like this:
1/3 – invested in product design;
1/3 – spent on its modernization;
A distinctive packaging design can be critical to selling it at the point of sale. The external design should give the right idea of the content. For example, white packaging of cigarettes implies a low tar content, while red packaging implies a strong taste. And canned beef stew should not be confused with dog food. With regard to modernization, let us recall, for example, the producers of Twix chocolate, working on new varieties of their product, which resulted in the appearance on the market of “Twix - a rare species”. And Nestle has more than 200 varieties of Nescafe coffee to satisfy the diverse tastes of its consumers around the world. Advertising achieves an effect only when it is permanent. Short-term successes are illusory.
IN USA the famous businessman Donald Trump, whose name is associated with all American citizens with a skyscraper, a hotel, three casinos, and supermarkets, once settled on this. Having achieved rapid success, he also quickly fell from his peak: in 1994, Mr. Trump's debts amounted to about $1.4 billion. The opposite example is Coca-Cola. It would seem that everyone knows this brand. So why does she need advertising? But the scope of its advertising campaigns confirms that any, even the most popular brand, needs constant support.
Rule #4: 50/80/90. This rule concerns such an important component of marketing as planning. There is a famous saying: “If you can’t plan, you can bet you will fail.” And here there is a certain rule that is worth remembering. If the quality of management is low, you can count on a maximum of 50% profit. With good – by 80% and with the best, sadly, – by 90%. That is, 100% is a myth and its implementation is impossible. Therefore, in order for the investment to pay off as much as possible, management efficiency must be maximized.
Rule No. 5: “The miser pays twice.” In this context, this simple wisdom concerns technical support. For not investing in upgrading the technical base on time, you will have to pay twice as much later. Moreover, this rule applies to everything: from modernizing the computer base in an organization to regular preventive inspection of the company’s vehicle fleet. The American “The Bank New York” illustrates the situation. It is so well equipped technically that attempts to hack its security system, which occur on average once every 10 minutes, have never been successful. On the other hand, and this applies to a greater extent to Russian companies, which often neglect to update their anti-virus systems, a common virus can become a serious problem, including the loss of critical data without the possibility of recovery.
Rule #6: “Be involved in the process.” This is an axiom. It does not have an exact formulaic expression, but it is an important law for managers seeking effective management in all areas of the company.
The success of a company, as a rule, contributes to the emergence of new problems and new worries. The more an organization expands and the faster its profits grow, the less time a manager can devote to advertising and marketing. However, these are too serious things to be completely left to someone else. If there is a need to delegate your authority in this area, then this can only be done in terms of direct constant communication with the press, participation in cocktails, corporate parties and other types of communications.
III. Product promotion methods used at the enterprise
LLC "LMZ-STEMA"
“Promotion of products is our task”
“Probably everyone is familiar with the phrase “competitive struggle.” Today, when the market is saturated with both domestic and imported goods, and the purchasing power of the main population of the country is not so great, competition is intensifying every year. “Chief Teacher” in marketing F. Kotler writes: “...Every company should strive to distinguish its product from others and make it better. If this is not possible, the company should invest in differentiating its service and making it better.” But to make your product special or unique, you need not only knowledge of the buyer’s needs, but also new equipment, new technologies, and this requires huge investments. But many domestic enterprises cannot afford this. Therefore, in market conditions, such enterprises win precisely because of the quality of service, the service offered, the use of advertising technologies, and the correct positioning of the product in the market.
The products manufactured by LMZ-STEMA LLC: enamel dishes, classroom whiteboards, sinks are no longer unique products, and today there are many competitors on the market, whose products are not fundamentally different from the products of LMZ-STEMA LLC. Therefore, not every buyer can determine the advantages or disadvantages of products from different manufacturers. Commodity abundance forces us to use all sorts of ways to influence the consumer in order to lead the latter to purchase. LMZ-STEMA LLC carries out a whole range of marketing activities to promote its products on the market. Firstly, this is participation in large specialized exhibitions in Russia and abroad: Ambiente, Servitex, Household Goods and Furniture, National Glory, Buy Russian, ConsumExpo, etc. After all, participation in exhibitions allows you to show products to your target audience and create the preconditions for subsequent contacts , helps to obtain a large amount of information about competitors (usually new technologies and new products are demonstrated at exhibitions). The exhibition helps to establish relationships with clients, solve problems in the field of Public Relations in creating a good attitude towards the company and providing the public with information. To identify the needs and preferences of buyers at exhibitions, marketing research, surveys and surveys of stand visitors are carried out. Secondly, over the past years, LMZ-STEMA LLC has been participating in a number of competitive programs, the objectives of which are to assist Russian manufacturers in promoting high-quality Russian goods, services and technologies. The result of participation in these programs were awards won by LMZ-STEMA LLC - bronze, gold, platinum quality marks of the 21st century, a gold sign “The best for children!”, a certificate of the program “100 Best Products of Russia”, they give the right to label their products with the appropriate familiar and, as a result, give the company the opportunity to distinguish it from similar products of competitors. To create a positive image of the organization and manufactured goods, and, consequently, consumer motives, LMZ-STEMA LLC, using the corporate style of AK LMZ OJSC, annually produces printed advertising publications - calendars, booklets, leaflets for distribution at ongoing exhibitions and fairs , through wholesale buyers. In 2001, an advertising video about Lysvenskaya dishes was made and broadcast on the RTR television channel, and copies of videotapes were distributed to large wholesale buyers for broadcast on local television channels. The company places print advertising in specialized publications, actively using direct mail and the Internet. In order to promote the classroom board, LMZ-STEMA LLC takes part in all tenders organized by the Regional Committee for Education and Science; as a result of winning the competition in 2003–2004, products worth hundreds of thousands of rubles were additionally sold.
When talking about product promotion, it is impossible not to mention packaging. After all, packaging should make the consumer want to buy the product. The packaging is the same as the clothing of the product. And just as poorly chosen clothing distorts a person’s appearance, so unattractive packaging distorts the idea of a product and creates a false picture of its quality and properties. Understanding this, the production, since May 2002, has been offering to the market sets of stewpans (low cylindrical pans) in colorful, full-color, easy-to-carry packaging. And work in this direction continues: colorful individual packaging for a souvenir mug is ready, and soon sets of pear-shaped saucepans and sets of saucepans with the “tor” element will also acquire a beautiful outfit. An advertising label with information about the benefits of the product has been developed for them and has already been ordered; its purpose is to stimulate the purchase of a potential consumer.
Specialists of the marketing bureau are forming a client database for analysis and research in order to be able to open new market segments and demand trends.”
“High quality is the key to success”
“Today, every manufacturer with a stable business dreams of receiving a prize at any prestigious competition of enterprises or industrial goods. Winning a prestigious competition is an opportunity to successfully use it in advertising. With the abundance of goods, both domestic and imported, on the consumer goods market, there was an urgent need to create a brand that would guarantee against low-quality products at the household level. I looked at the label or packaging - and it was immediately clear. There is nothing to be afraid of this product, it is reliable and inspires consumer confidence.
Labeling products with the “21st Century Quality Mark”, “100 Best Products of Russia” means that this product has passed an examination and meets state standards, and also has excellent quality at the level of international standards. Such products can be trusted, and people willingly buy them. The words ecology, safety, quality are no longer empty words and easily surpass all popularity ratings. It has somehow become unfashionable to buy a pig in a poke. Today they prefer to buy something more expensive, but with the confidence that the item will last a little longer than stated. The necessary quality control is carried out by an expert commission represented by ROSTEST-Moscow. The consumer properties of products that determine their quality and competitiveness are subject to examination. The evaluation criteria is the product’s compliance with the quality indicators of state standards and other regulatory and technical documentation, confirmed by the results of the examination of the submitted documents and testing of product samples.
Throughout 2002, LMZ-STEMA LLC took part in a number of competitive programs, the objectives of which are to assist Russian manufacturers in promoting high-quality Russian goods, services and technologies. The products manufactured by LMZ-STEMA LLC were adequately appreciated and received high awards. At the competition “All-Russian Brand (III Millennium). Quality Mark of the 21st Century”, held from 2000 to 2002, enamel cookware reconfirms the right to own the “Platinum Quality Mark of the 21st Century”, and new samples of sets (with a “torus” element; with glass lids and stainless steel handles) were also awarded the “Golden Sign”. steel), a kettle with a whistle, a blackboard, an enamel sink was awarded the “Bronze Quality Mark”. At the All-Russian competition “Only the best for children!” For its high quality (also confirmed by the ROSTEST examination), the classroom board was awarded the “Golden Quality Mark” “The best for children.” Participating in the all-Russian program - the competition "100 Best Goods of Russia", enameled steel cookware LLC "LMZ-STEMA" was awarded a diploma from the program "100 Best Goods of Russia". These awards give the enterprise the right to mark its products with the appropriate Mark free of charge for 2 years and, being a Laureate of the Platinum Quality Mark of the 21st Century, has the right to apply for a passport “Reliable Enterprise of the Russian Federation”.
LLC "LMZ-STEMA", like its parent company - OJSC "AK LMZ", has a goal - to achieve unconditional recognition in the domestic and world markets. The tool for achieving it is a comprehensive improvement in the quality of goods and services. The main thing on this path is not to lose face. And success will definitely come."
In 2004, in addition to printed advertising media: price lists, booklets, leaflets, the company’s specialists produced an electronic product catalog, which allows you to send visual information about products to potential consumers, existing clients, and distributed at exhibitions and fairs.
"It's better to see once"
It is not easy to create high-quality products such as those produced by LMZ-Stema LLC. The process of its “birth” includes ideas, development, testing, implementation into production... But this is not the whole chain. Next, these wonderful products need to be presented favorably to existing and potential buyers. Some of the modern forms used for this throughout the world areCD- business cards, presentations, electronic product catalogs... True, their development, for example in the Perm region, costs from 1 thousand to 3.5 thousand dollars. The first in our company, and, perhaps, in the city, to prepare such a catalog on their own, using the latest computer technologies, were the Stamovites.
To successfully promote its products on the market, any enterprise needs to provide consumers with information about the product. Over the course of several years, Stamovites have released several advertising brochures and leaflets, providing wholesale buyers with colorful printed catalogs of their products. But in order to maintain leadership in the production of domestic enamel cookware, the company is forced to replenish its products with “new products”, develop exclusive designs, and new technological developments. Creating printed advertising publications is a long and expensive process. The more advertising products you order, since the price depends on the circulation, the more likely it is that the last copies of printed advertising will lose their relevance and will contain outdated information about the products.
And so the creative team of LMZ-STEMA LLC was faced with the task of how to demonstrate their products, available enamel coatings, and decals not only to wholesale partners in a timely, visual, and accessible manner, not only to wholesale partners, but also to create a favorable image of the enterprise among potential buyers. An electronic version of the catalog would allow this problem to be solved, and its distribution would not be so time-consuming and cost-intensive.
The preparatory process has begun, including photography, computer processing, and advertising support. The designer of the enterprise, Lyudmila Nefedkina, and the artist, Olga Ralnikova, photographed dishes, enamel coatings, and decals, which are in demand among consumers, professionally choosing the desired angle, background, and composition for photography, creating still lifes with greenery, flowers, berries, and vegetables to suit your taste.
Today, two electronic catalogs of STEM products have been created.
The first was developed for one of the Moscow exhibitions at the end of last year, the second with the assortment of the current summer-autumn season - this year.
At the request of customers, it was planned to make only catalog pages demonstrating the decals used in the design of tableware. When they were laid out, the developer did not think the work done was very solid or presentable. There was a desire to do something more interesting and consistent with the image of our company. The idea came to use Flash technologies, which allow us to “revive” the image and develop complex animation effects. The result is a very nice, easy-to-browse catalogue. The Screensaver opens it. On the screen there are changing and flickering images, from which we learn that the LLC produces more than 5,000 types of products, the high quality of which is guaranteed by the international ISO standard, and we see the geography of supplies. The catalog has three main sections: Decals, Coatings and Tableware. They present the latest samples, some of which were released only a month ago. The pages are designed very conveniently and are available for viewing by any recipient. The catalog has "live" links with email addresses of the marketing and sales departments in the Contacts section. When you click them, the mail program and the letter form with the addressee fields already filled in opens. The catalog contains seven original melodies, which allows you to choose the musical accompaniment for a more enjoyable viewing experience.
You can be sure that this electronic catalog, made using modern computer technologies, into which a piece of the soul, talent, and energy of a creative team of like-minded people was invested, will be the calling card of LMZ-STEMA LLC for many years to come.
Based on the approved advertising budget (Appendix 1), a product promotion plan for the year has been drawn up (Appendix 2), but the company has not yet applied all modern promotion methods, such as merchandising, franchising, and an online store, it is a matter of time. As noted above, the Internet is used to promote products; information about products is posted on the website of the parent company OJSC AK LMZ (Appendix 3).
Commercial proposals are sent to regular and possible potential clients for cooperation (Appendix 4), invitations are also sent to visit the stand of LMZ-STEMA LLC (Appendix 5), congratulations on upcoming holidays and anniversaries. In the commercial proposals we send, we must use elements of the corporate identity of AK LMZ OJSC, the trademark of the parent enterprise, LLC marks confirming the quality of the products, and information about the international system of ISO standards operating at the enterprise.
One of the points in the product promotion plan of LMZ-STEMA LLC is advertising in the media. But we are just starting to work in this direction, and the difficulties we have to face are the limited advertising budget. After all, placing print advertising is rational only in publications – “watering holes”, aimed at a readership that is potential consumers of products.
Marketing research shows that the main buyer of enamel cookware is women from 16 to 65 years old, because a woman is the “keeper of the hearth” and, by and large, only she cares about what to cook with, what the interior of the kitchen in the house looks like, and therefore the dishes, how much they will be environmentally healthy dishes. Popular women's magazines are such as "Peasant", "Domashniy Ochag", "Cosmopolitan", "Liza" and many others, and it would be wise to place your advertising in them. But after conducting a comparative analysis of the prices for advertising in these magazines (A 4 format page in the magazine “Peasant” costs $7 thousand), the LLC places its advertising in cheaper publications (Perm magazine “ On your floor" newspaper “Komsomolskaya Pravda - Perm”), offers are always welcome from advertising agencies that request information about products and place them free of charge in their “pilot” issues (Moscow magazine “Kitchens and Bathrooms”). In these publications, advertising, although it is indirect, i.e. they post information both about competitors’ products and about a specific competitor product, still brings to the attention of the reader the advantages of a particular product and provides him with the opportunity to choose. And the task of LMZ-STEMA LLC is to provide information that favorably distinguishes the advantages and benefits of its products from competitive ones.
IV. Conclusion.
The FOSSTIS service (demand generation and sales promotion) is an integral element of the entire marketing structure of an enterprise, regardless of what goods (products or services) the enterprise produces and offers to its partners. Advertising is the most effective tool in an enterprise’s attempts to modify the behavior of customers, attract their attention to its products, create a positive image of the enterprise itself, and show its usefulness. To successfully enter the market, an enterprise, focusing on the selected target market, or more precisely, its preferred segment of the target market (in advertising practice - a contact audience), must offer its potential consumers an attractive product of market novelty. In accordance with this, it is planned to hold events in order to create demand for the product (FOS event), the main one of which is trade advertising.
Product advertising – any form of non-personal appeal to potential buyers with the aim of persuading them to purchase goods, services, etc. With the help of various FOS activities and, above all, product advertising, a positive “image” of the product is created in the minds of potential buyers.
The main advertising tools: print advertising, radio and television advertising, advertising on non-traditional and moving advertising media, outdoor advertising, at points of sale, “electronic” advertising, souvenir advertising, exhibitions and fairs.
Sales promotion is an integral part of the marketing mix. These are any activities aimed at increasing sales of goods, including advertising, public relations, exhibitions and fairs, personal selling methods, stimulating consumers and the trade sector, and sales promotion at points of sale.
Sales promotion activities aimed at consumers most often the goal is to introduce the consumer to a new product and “push” him to purchase; increase the number of product units purchased by one buyer; encourage adherents of a particular brand and regular customers; reduce temporary fluctuations in sales (seasonal, by day of the week, during the day), etc. For this purpose, various tools are used to influence the consumer: seasonal sales discounts for certain categories of consumers, discounts for the bearer of a coupon, prizes from the manufacturer for participation in a competition, discounts for buying a new product, etc.
Sales promotion activities aimed at resellers, The following main tasks are being solved: to encourage an increase in sales; stimulate orders of maximum volumes of goods for sale; encourage the exchange of best practices in the sale of a specific product; reduce temporary fluctuations in the receipt of orders from intermediaries, etc. To do this, manufacturers apply volume discounts, participate in a joint advertising campaign with the intermediary, place advertisements in retail establishments, distribute promotional souvenirs, etc.
The work uses marketing tools for influencing consumers that are acceptable for the given situation at the enterprise and do not require large financial investments. An advertising budget for the calendar year has been drawn up to promote products in the Perm region and measures have been planned to stimulate sales channels and the end consumer.
In conclusion, I would like to note that in connection with the ever deeper penetration of the marketing concept into the activities of domestic organizations, the question of efficiency is increasingly being raised - the effectiveness of advertising, PR campaigns, and individual marketing research.
When concluding about the effectiveness of any methods of promoting goods, I would like to emphasize that any event must be calculated in advance, all factors that can affect the marketing project must be taken into account, because one careless decision can lead the enterprise to large losses, while a correctly and timely organized one can lead to profit. additional profit.
Bibliography.
1. Kotler F. “Marketing. Management", S-P., 2000, p. 517-535
2. Kondyreva S. “Features of the formation of a national brand in Russia”, Journal of Marketing and Marketing Research in Russia No. 3, M., 2001
3. Komarova N. “6 mathematical laws of marketing”, Journal of Marketing No. 4, 2002, p. 51- 52
4. Litvinov S. “Preparation for seasonal sales. Laws of merchandising”, J. Marketer
No. 4, 2002, p. 15-20
5. Makienko I. I. “Consumer behavior in the Internet environment”, Journal of Marketing and Marketing Research No. 4, 2003, p. 8-16
6. Mamonova A. “Anticipation of a sale”, Journal of Marketing No. 4, 2002, p. 47-49
7. Melnikov A. “Analyze this! Features of advertising communications in Russia”, Journal of Marketing No. 9, 2003, p. 38-39
8. Nishchev S. “Methods for assessing efficiency” Zh. Marketologist No. 9, M., 2003, p. 55-64
9. Orlovskaya L. “Marketing communications”, Journal of Marketing No. 4, 2002, p. 4-7
11. “12 stories about franchising”, product\branding, J. Marketer No. 9, 2003, p. 4-10
13. Internet.
Annex 1
Appendix 2
|
Plan for promoting products to the market and stimulating sales channels. |
|||||||||
|
Event |
Focus |
Completion mark |
|||||||
|
execution |
|||||||||
|
Measures to stimulate the end consumer. |
|||||||||
|
Increase the share of colored packaging in the total number of sales (set No. 124; 129; 0.5 l mug; kettle with a whistle) |
during a year |
end-user |
Attractiveness |
||||||
|
end-user |
|||||||||
|
Making a mini booklet about cookware |
end-user |
Purchase incentives |
|||||||
|
retailers |
consumer information and preferences |
||||||||
|
Production of price tags with an element of corporate identity |
end-user |
Manufacturer's image |
|||||||
|
during a year |
end-user |
transfer of information about the product |
|||||||
|
3-4 quarter |
end-user |
||||||||
|
Production of self-adhesive labels for products |
during a year |
end-user |
Manufacturer recognition (image) |
||||||
|
Measures to stimulate wholesale buyers. |
|||||||||
|
Sending commercial offers by E-mail, mail |
during a year |
potential consumer |
Manufacturer recognition (image), information about the product |
||||||
|
Production and distribution of wall calendars |
Manufacturer recognition (image) |
||||||||
|
final consumer, wholesale |
Product information |
||||||||
|
Replication of a video about tableware and distribution to wholesale customers |
wholesale, final consumer |
Purchase incentives |
|||||||
|
Production of a printed product catalog |
March, April |
Product information |
|||||||
|
Replication of electronic product catalog |
Product information |
||||||||
|
February March |
Product information |
||||||||
|
Measures to improve the image of products. |
|||||||||
|
Trademark creation, registration |
during a year |
end-user |
Manufacturer recognition (image) |
||||||
|
Participation in the competition programs “Quality Mark of the 21st Century”, “100 Best Products”, “The Best for Children!” |
during a year |
end-user |
improving the image of the manufacturer and products |
||||||
|
Participation in exhibitions |
during a year |
potential consumer |
attracting potential buyers |
||||||
Appendix 3
Information for posting on the site.
LLC "LMZ-STEMA" is a leading domestic manufacturer of enameled steel products: dishes, sinks and classroom boards; one of Russia's largest developers and manufacturers of silicate enamels, glazes and ceramic frits. The production of enameled products has been developing and improving for 90 years, and currently the products produced are not inferior in quality and design to their European counterparts, and at the same time are affordable for Russian buyers.
Our products for their high quality, durability and hygiene are marked with certificates, diplomas from Russian fairs and competitions and awarded bronze, gold and platinum signs "Quality markXXI century", gold sign “The best for children!”, became a finalist of the competition "100 best goods of Russia" in 2000-2002.
We are open to mutually beneficial cooperation and the establishment of partnerships in the promotion of goods of stable quality to markets, guaranteed by the international standard ISO 9001-2000, which is in force at the enterprise.
Contacts LLC "LMZ-STEMA"
Country: Russia TIN 5918006090
Index: 618900 r/ac 40702810349230110541
City: Lysva, c/c 30101810900000000603
Address: st. Metallistov, 1 BIC 045773603
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Western Ural Bank SB RF
Catalog price list
The products meet modern design requirements and are distinguished by the following characteristic features:
- ease of writing with chalk, what is written is easily erased, which makes it possible to keep the boards clean without much effort;
- contrast and clarity of the image, absence of glare at any viewing angle;
- the ability to write with a felt-tip pen, which allows the use of boards in computer classes;
- the possibility of using magnetic fastening of teaching aids;
- fire safety, non-toxicity, hardness;
- resistance against detergents and organic solvents;
- long service life.
Classroom boards are manufactured in the following types:
- single-sided with one working surface;
- casement with three working surfaces;
- casement with five working surfaces;
- casement with five working surfaces with lined working surfaces of the side doors (cage, oblique ruler);
- casement with seven working surfaces;
- combined casement doors - with green and white surfaces at the customer's request.
Surface:
- green (for writing with chalk);
- white (for writing with a felt-tip pen).
A white board can serve as a projection screen. At the customer's request, we can produce boards of other sizes and easels.
The enamel-coated board is certified and recommended by the Russian Academy of Education and the Ministry of Education of the Russian Federation for use in educational institutions. The board was awarded the “Only the best for children” sign and the Golden “21st Century Quality Mark”.
Enameled steel medical products:
Medical glassware is used to equip medical institutions
Price list (zip 764 kb)
Manufactured products:
- Kidney-shaped tray vm. 0.8 l. – designed for collection and disinfection of instruments in departments of medical institutions.
- Medical steel enameled spittoon - designed for collecting waste and serving patients in departments of medical institutions and at home.
- Enameled steel bedpan 2.5 l. – intended for servicing bedridden patients in departments of medical institutions and at home.
- Medical sippy cup 0.4 l.
Enameled steel sink
Types of sinks:
- MSUTS 500 x 600 x 170
- MSVTSK 450 x 505 x 170
- MSV 450 x 505 x 170
- MSVC 450 x 505 x 170
MSVC - built-in (can be equipped with brackets for mounting to the wall)
MSUTs - unified (built-in and with bracket)
C - with a hole for installing a central mixer.
At the buyer’s request, the sink is equipped with water intake (“herringbone”) and drainage fittings.
Silicate enamels (Frits).
Appendix 4
Dear Sirs!
LLC "LMZ-STEMA" is a leading domestic manufacturer of enameled steel products: enameled steel utensils, enameled sinks and classroom boards, offering mutually beneficial cooperation.
The production of enameled products has been developing and improving for 90 years, and currently the products produced are not inferior in quality and design to their European counterparts, and at the same time are affordable for Russian buyers. We were one of the first to master the technology of coating rolled sheets with silicate enamels and assembling classroom boards for schools and educational institutions.
High quality, durability and hygiene of products are marked by certificates and diplomas from Russian fairs and competitions. We are holders of bronze, gold and platinum marks "Quality markXXI century", gold sign “The best for children!”, became a finalist of the competition "100 best goods of Russia" in 2000-2002.
Low-budget marketing... Every business owner's dream. And it would be even “dreamer” - if at the same time the recognition of the company (product) would grow exponentially... and the sales curve would bend steeper and steeper every day...
But the reality is that marketing budgets ( advertising, PR - highlight what is necessary) are laid out using methods known only to the “layout designer” himself ( read - marketer, advertiser...) laws... And, with rare exceptions, they are a weak reflection of the reality and the company’s need for contacts with the target audience.
They say that the real professionalism of a marketer lies in bringing a company (product) to the market without a budget... Well, or with the minimum necessary cash injections.
I don’t know how true or controversial this statement is - I can’t imagine Coca-Cola, Mars and Adidas in the market without budgets... but still. The fact remains, and the realities of the market are such that not everyone has the budget to pay for “multi-layered” advertising campaigns. In addition, due to the still prevailing mentality of Russian business owners, who are skeptical and distrustful of their own marketing services, small and medium-sized businesses are not yet ready to part with money for advertising and other marketing communications ( because there is no clear understanding of “how will all this come back to us...”).
So, what low-budget ways do you use to market a company or product?
I can offer you tools that I have used quite often in my practice, which have been tested by the market and have shown their effectiveness, and which have helped me out more than once.
1. Barter. Many people don't like this word. Especially in accounting departments. I don’t really like it myself. But I must admit that such a cooperation scheme is quite common in the Russian business segment, even among large and respected players (for example, such as Rosinter). Of course, if you have something to offer your potential partner. And, obviously, the value of your offer for your partner should be no less than what you expect (ask) from him.
2. Exhibitions. Yes, your industry exhibitions are a good reason to promote yourself in your own market among your partners and target audience. And no, you don’t have to buy an expensive place and set up a stand. Be more creative - push the boundaries of your imagination. There are many other ways to introduce yourself at the exhibition, distribute your contacts and collect the ones you need.
Carefully study the proposal of the exhibition organizer, the site where the exhibition will be held - look for opportunities for a low-budget “performance”.
This could be simply placement in the exhibition catalog, posting on the website, renting 2-3 square meters at the entrance to the exhibition, placing a girl/boy with the distribution of samples (or just some “goodies”-useful things with your contacts), investing in a package participant, organization of a photographer with instant printing of photographs against a press-wall background with your logos, and so on - think of it! (by the way, such participation can also be closed through barter)
3. Internal events. This means your personal events for your target audience, for your potential clients. Create some kind of useful event for your customers - what is their pressing problem? What critical question do they have that they typically pay money to answer?
Give them this answer for free! Perhaps in the form of a mini-seminar or micro-training for 4 hours, maybe together with a representative of an authoritative opinion for them (for example, if this is medicine, then this can be the head doctor of a serious clinic, if trade - the manager of a large network, the head of the tax office, top - bank manager, etc.).
You can agree on holding such a seminar with the owner of the premises, who is also interested in the audience that overlaps with you, but is not a competitor to you in terms of services. For example, it could be a cafe, club or restaurant that is simply interested in visitors and sales of the kitchen and bar. In addition, in your pre-PR campaign to recruit participants for your event, you will promote them, as well as in post-releases and reports after the seminar. Don’t forget to mention this in negotiations with the site owner.
4. External events. Many people forget about the most useful semi-informal get-togethers or, conversely, professional “meetings” of their decision-makers (people who make decisions on cooperation) in the form of various chambers, clubs, communities, and so on.
Look for it - there’s probably a Chamber of Commerce and Industry in your city that periodically organizes parties for CEOs or financial directors. Look for different fashionable features, such as a mafia gaming club for HR directors. For accountants, these could be seminars conducted by the local Federal Tax Service. Find out where the marketing directors in your area hang out (if you offer printing, design, or advertising services, for example...). Find out where the logistics directors live (if you are a courier service or transport company).
If it’s completely boring in your city and poor decision makers stupidly go home after work - see the point above: come up with it yourself! Your own events. Finally, create your own club of mafia players for ____ ( insert the position you need)! Your expenses include purchasing or ordering printing of special cards, blindfolds and beautiful rules on A4 sheets!
Any restaurant in the city will be happy to lend you space on Wednesday evenings for such a theme. In addition, it is not necessary to make such evenings free. Freebies are relaxing. And the mafia club requires discipline ( read the rules on the net). Therefore, take 100-500 rubles from the players. per evening (the amount should be such that it can be dealt with painlessly, and the value received in return will significantly cover such a “loss” from the wallet).
5. Press releases. Make it a habit to issue press releases about your company's activities every Tuesday. Releases should not be large and voluminous - make 1/2 of a printed page of text plus a couple of key sentences about the company.
Look for news updates within the company all week! Set up a system for collecting and processing news and, in general, everything that happens in the company. Any sneeze should flock to your department. And you can decide for yourself whether to air it or not ( together with the business owner, of course).
And regularly distribute your press releases online and through all communication channels available to you: website, corporate newspaper for clients, newsletter, notice board in the sales area or reception area... Register your press releases in free press release directories ( they can be easily found in any search engine). Send your news to interested publications in your region - both print newspapers and magazines, and online media.
6. Publications. The same goes for longer-form press publications—provide free content to journalists and media outlets. These could be interviews on your market, on some problem of your consumers, analytical reports and cross-sections, statistical data ( many media like different statistical collections), just interesting publications “on topic”. Invite the leading publication in your region to organize and maintain some special interesting section - and supply your section with relevant and fresh information on a weekly basis.
Everyone needs interesting and useful content! Finally, ask your customers or potential clients - what are they interested in about your topic, what do they want to know about?
7. Cases. Or case study. Or success story. The nature is slightly different, but the point is, in principle, one thing - to show your target segments, using an example, a solution to THEIR problems. Write stories using the formula “Problem - Solution - Result”, “how bad it was before - and how wonderful it was after”, the principle, I think, is clear. Stories in this vein are very attractive and attractive.
8. Reviews. Customer feedback is something you should collect from the time your company is still a business embryo. Especially if your client is a more or less well-known company in your region. On branded colored letterhead, with a beautiful seal, with the signature of the first person or key top manager of your client.
Collect and store your reviews in a separate folder, each in a separate file, treat them with care and respect -) Well, without fanaticism, of course. You just have to understand that these are the results of your work. These are your “thank you, you helped us a lot” from your clients. And don't forget to digitize all your customer reviews. Only exactly, in color, with high resolution and readable text.
9. "Word of mouth". Involve the local population in promoting your company, products, brands. It’s no secret for a long time that “sundress” works best in the services market. But in order for your sundress to work, you need to work on it! What did you think? They just launched a rumor among the people - and they picked it up and carried it to the masses? Of course, it would be great if everything were so simple - no one would spend money on expensive TV and radio advertising, but would only be engaged in “injecting” rumors into the masses.
The simplest and most effective thing is to remember yourself. What information have you personally ever passed on “by word of mouth”? It was probably something shocking, out of the ordinary, or terribly funny, or curious, or disgusting, or improving some aspect of your life... Do you feel what I mean? Yes, that's right - it should be something that hooks.
But here, be careful - your legend should support and improve the image of your company/product, and not destroy it.
10. Free consultations, demonstrations, samples. The name speaks for itself. Don't be afraid to give! Nobody likes to buy a pig in a poke. Everyone wants to try first and then decide to buy.
Here your marketing must work more closely than ever with sales. Because it’s not enough to just give it a try - after that you need to constantly ask at a given frequency: “Well, did you like it? Let's buy the full version. Did not like? Why? and so on...". Keep in touch, monitor your potential client. Offer him special offers, inform him about new products, promotions, discounts.
But don’t be afraid to identify and cut off the “eternal tryers” - these are those who initially know that they will never buy, but will never refuse a freebie... You shouldn’t waste your precious time on such “under-customers”...
11. Atmosphere and design of the client office/service hall, reception area, meeting room/. In these premises, EVERYTHING should speak about your professionalism, the quality of your services and the specialists who, in fact, provide these services, inspire confidence in you, your company, your product - every little thing and every element.
Finally, remove all these antediluvian certificates and gratitude from 2003-2007, issued to you by someone for something! Leave just one - but a normal, fresh, up-to-date solid professional license, or certificate, or diploma, or whatever your specific requirement is...
No wobbly chairs, ragged tables, burnt sofas, cracked glass surfaces... Well, remove this piece of furniture if you don’t yet have the money to reupholster, repair, or buy a replacement. It’s better to throw in a couple of frameless “pears” for one and a half thousand rubles, if you need to somehow take up space - well, even if no one sits on them, but they will give a certain “your dude” freshness and dynamism to your office.
12. Gift certificates, loyalty programs. That is, do it so that the client wants not only to come to you again, but to bring someone else with him next time. By the way, this also works with corporate clients. You just need to think a little longer... And ask around/observe the clients to see what might stimulate them to take such an action.
An excellent example is large cosmetic chains, fitness clubs, mobile operators ( least). Copy this ready-made and perfectly working model and apply it to your business - what exactly is stopping you? ( The first gift certificates can be printed on a color printer, if things are really difficult... if you get rich, you can print plastic, no big deal!)
In addition, if you have a representative office of any federal discount and coupon network in your city ( like Groupon, but there are a lot of them now), or perhaps there is a local company with this kind of operating principle, contact them and let them plan an advertising campaign for you. They won’t take money from you for this, but you will clearly see how much you can earn in one day of such a promotion with zero investments in coverage and attraction. The decision is yours.
13. Cross-marketing promotions with partners. Organize joint promotions with your colleagues, with whom your products can complement each other for the same target audience ( “The printing house blah blah and the furniture salon blah blah are holding a joint promotion only from May 1 to May 20: buy office furniture and get an 80% discount on any advertising printing!”). Promote them well by region ( You can also take the media as partners), share contacts with each other, and work with the resulting client base, each in its own format.
14. Competitions, quizzes. This is about the same thing as cross-marketing, only in a more entertaining format. Each partner performs its own function, makes its contribution - provides prizes of different formats and nature, covers the event, prints banners, programs the web, handles logistics, takes photographs, shoots videos, feeds, clothes, etc. But someone must take on the role of organizer and coordinator. For example, you, as the initiator and creator of the concept ( which you pre-send to the partners you need for your contribution).
15. Cultivate feedback from your customers. Establish relationships with them. And develop them. Invite them to express their opinion on any matter - about your services, about the same services on the market in general, conduct surveys, call to action in your communications, provoke them to respond to your messages, conduct surveys on the website or jointly with partners, give them free advice and ask to rate them, get their consent to receive your marketing materials (only useful for them and not often!).
Final word
Of course, all these low-cost marketing methods do not require a lot of money, but they do require the investment of other resources - time, effort, patience, energy, imagination and your knowledge.
Yes, and you shouldn’t be scattered about all of the described promotion methods - try each of them in turn, see - which works best for you, brings the most clients? Focus on the few that are most optimal for you in terms of the combination of time and labor costs/number of completed deals.
And one more tip that I would like to mention, but which everyone often forgets... Due to confusion and immersion in routine, probably...
Promote and sell not your company and your products, but the “emotion” and “result” of using your services and contacting your company!
Few people need the services of a beauty salon, but a beautiful haircut and a perfect manicure - yes! I am not at all interested in the services of an advertising agency, but an increase in sales by 20% in 6 weeks - let's discuss this soon! There are plenty of cheap tours to Egypt and Greece, but complete disconnection from current worries and immersion in absolute relaxation for two weeks – there are few such offers! (if they exist at all...)
So stop, colleagues, disconnect from the hustle and bustle, take a time out for the day, go to the park, turn off your cell phone, sit on a bench, relax, look at the fountains, watch people - low-budget ways to attract clients are on the market, you can come up with them. It's just that in pursuit of feverish sales and abstract results, we don't always see them.
P.S. And don’t forget that attracting a new client costs FIVE times more than retaining an old one. Therefore, do not forget about your client after the first sale (obtained by one of the methods discussed in this report), in fact, this is where work with him is just beginning!
Sales GeneratorReading time: 19 minutes
We will send the material to you:
Every entrepreneur knows: if his product is correctly assessed and understood by the consumer, then the proceeds from its sale will grow. Marketing is needed to promote products. In our article today we will look at how products are distributed on the market and through whom, as well as what methods of promoting a product exist.
From this article you will learn:
- Old methods that bring real results
- Modern product promotion on the verge of shocking
- Different and effective ways to promote a product on the Internet
- Ways to promote on social networks
Classic ways to market a product
Methods of promoting a product on the market mean certain activities aimed at making sales more effective. Such events involve a communicative impact on partners, consumers and staff.
It is necessary to promote a product in order to maintain the company’s reputation and increase demand for the product. Promotion allows you to:
- create an image of prestige, innovation and low prices;
- provide consumers with information about products;
- change the standards of perception of it;
- maintain the popularity of services and products;
- increase the popularity of high-value goods and services;
- stimulate the sales system and its participants;
- spread favorable information about the company.
Modern marketing divides methods of product promotion into the following: four types:
Direct sales or personal
The basis of this method of product promotion is oral communication with the client in order to convince him of the need to purchase the product/service. This method does not require investment.
The level of business organization using the direct sales method is high, in contrast to the provision of household services or banal retail trade. If you do not develop direct sales, this will lead to a drop in sales volumes even if all other marketing conditions are met.
The essence of personal sales is as follows: they require an ordinary operator who takes orders to transform into an active sales manager.
Personal selling as a way to promote products has the following advantages:
- individual approach to the client, providing him with a large amount of information;
- feedback from consumers, making it possible to adjust the entire advertising campaign;
- costs that do not bring financial results are minimal.
Promoting a product this way requires a lot of turnover costs and this is the downside. The effectiveness of personal selling is highest when the seller has an exclusive product.
Advertising as a way to promote a product
Advertising is needed to inform customers about the company’s activities and the consumer properties of the product. It must be viewed from this position. No amount of advertising, even prestigious and very expensive, will help sell a product if its relevance and demand among consumers is very low.
There is a dependence of product promotion on the content of the advertising message. It should be a highly unique sales message (“Buy our products and get a specific benefit”).
Typically in marketing there are three types of advertising perception:
- Information is in demand; it is clear, accessible and easy to remember.
- The information is random and it is difficult to remember it.
- The information is unnecessary, irritates consumers and is therefore ignored by them.
When the consumer understands that he needs the advertised product, he is ready to make a purchase. This is the way to promote a product through advertising.
Sales promotion
This is a combination of various activities whose task is to promote a product. The recipients of sales promotion are the following:
1) Buyers. Customers are encouraged to purchase more products using the following methods:
- loyalty programs;
- games, lotteries, competitions;
- promotional demonstrations of products;
- promotions for new product names;
- free provision of product samples.
2) Counterparties. They are encouraged to increase the volume of trade transactions. You can stimulate sales in the following forms:
- train sales staff;
- provide equipment for trade and promotional materials;
- authorized leadership, holding competitions based on sales results;
- You can provide related services (informational, in the field of jurisprudence).
3) Sales personnel. Trade workers are encouraged to do their best to attract new customers and improve the quality of service. You can stimulate:
- materially (bonuses, bonuses), morally (gratitude, certificates);
- organizing sales volume competitions between employees;
- paying employees who work flawlessly for vacation (a trip to a sanatorium/resort);
- compensating the costs of treatment, training and retraining of workers.
Propaganda
This is a way of interacting with society that does not involve personal contact or payment. That is, demand is stimulated by disseminating information of a commercial nature, as well as image information, both through intermediaries and independently. The purpose of propaganda is to attract the attention of potential customers without spending money on an advertising campaign.
Propaganda is carried out through the following tools:
- events (online meetings, press conferences, contests, competitions, etc.);
- publications (newsletters, prepared reports, articles in newspapers and magazines, brochures, etc.);
- news (positive reviews of products in local media);
- identification means (room design, development of a unified style, multi-color printing, watermarks, etc.);
- sponsorship (material and monetary assistance in organizing and conducting sports events, as well as charitable ones).
Submit your application
The recipients of these tools are:
- Counterparties.
- Consumers.
- Municipal and state authorities.
- Key journalists.
These are no longer new ways to promote products, but they bring real results.
A good effect can be obtained if you combine the methods of promoting a product on the market presented below.
Telemarketing
- direct telephone sales to potential customers;
- establishing interaction with existing audiences;
- using relationships to bring new products to market;
- identifying real “tips” from general mailing lists;
- conducting post-completion events for direct marketing programs;
- bringing back disappointed customers by offering them new products that may be of more interest to them;
- further work with sales leads attracted by an advertisement, direct marketing event or through intermediaries;
- conducting marketing research, assessing customer response to new products or innovations in the field of sales by conducting surveys and surveys;
- establishing contacts with consumers as part of a relationship marketing program.
Telemarketing also makes it possible to obtain various information from respondents and use the results obtained as a result of their analysis for organizing and implementing marketing activities in the future.
Merchandising
Merchandising is needed to make products easily accessible and attractive, and the purchasing process easier. This promotion method has the following functions:
- monitoring the availability of products on store shelves, tracking the popularity of certain products;
- organizing points of sale and supplying them with all necessary materials;
- ensuring the display and location of products, that is, the presentation of specific product items.
The initial task is to create the necessary stock of goods, then you need to place them at points of sale in a certain range and volume. In merchandising, the correct choice and placement of advertising materials (price tags, stands, booklets, coin holders, posters, hanging and floor models of products) is very important.
One of the most important merchandising methods is product display (exposition).
Exposure refers to the procedure for placing goods on specialized retail equipment. The rapid growth of product sales is facilitated by its display in places that attract the attention of potential consumers. In addition, the presentation of product packaging is very important.
Event marketing
Another name is creative marketing. But in reality it is event-based, since it involves promoting products/services through events.
A striking example of Event marketing is the main music and technology festival Alfa Future People, held by Alfa Bank. Below is a link to a video from this event held in 2016. It amazes with its scope.
But what if your organization is not that large? Everything is quite easy! If possible, participate in various events and use event marketing to the maximum. For example, on City Day, you can distribute balloons with the company logo to people. It really works!
The owner of one coffee shop, on the eve of City Day, prepared balloons with the establishment’s logo and distributed them to children who ran around the city with them all day. It is worth noting that at the end of the holiday, many families with balloons came to this establishment. They were given loyalty cards to keep in touch in the future.
Territorial marketing
This is a relatively new concept (appeared in 2002), meaning marketing in the interests of the territory. In simpler terms, area marketing aims to “sell” an area to potential clients in order to improve the lives of the people living there.
The most famous examples of territorial marketing are advertising expenses in order to increase the flow of tourists. For example, Greece's costs for attracting tourists/advertising resorts are approximately 100 million euros per year.
A well-known domestic territorial marketing project is the Olympics in Sochi. According to official statistics, investments in the construction and promotion of the Olympic Village amounted to approximately $52 million, and revenue from the Games amounted to about $80 million.
Modern methods of product promotion on the verge of shocking
The following methods of promoting goods and services are now popular.
Guerrilla Marketing
This method of promotion is low-budget. With the help of guerrilla marketing, you can organize effective promotion of a product/service, attract new customers and increase your income with minimal investment or no investment at all.
This method is an alternative to television and radio advertising, since it involves the use of inexpensive advertising media, various tricks and tricks.
Here are some types of guerrilla marketing:
- Word of mouth
For example, one of the restaurants does not spend any money on advertising. The main expense is free lunches for hairdressers. Moreover, their quality, as well as the level of service, is quite high.
Everyone knows that people usually trust their hairdressers, makeup artists, and stylists (after all, you cannot trust your transformation to a stranger, especially women). They constantly communicate with clients and share news. It’s not hard to guess that they also talked about free visits to the restaurant.
- Scandalous action
Guerrilla marketing can be effective, even if it involves holding a high-profile event that will be talked about by all the media. A good example is the advertising campaign of the cellular operator Tele2.
At a cellular communications exhibition in St. Petersburg, promoters under his brand carried a coffin with the inscription “Dear Communications.” Naturally, people were shocked, and the promotion was subsequently broadcast by many media outlets.
- Collaboration
In general, our opinion is that guerrilla, viral marketing, which requires minimal investment, is a partnership or, in modern terms, collaboration.
For example, in a dental office, a company that produces toothpastes and mouth rinses placed a sign on the ceiling: “You don’t want to see that boring ceiling again? Our toothpaste will help you! Everyone knows: sitting in a chair during dental treatment, people have to look at the ceiling.
Stars in advertising
The practice of inviting celebrities to advertise products is common all over the world, including in our country. But no famous person can give you guarantees of sales growth and successful PR. You can find examples of both successful and not so successful involvement of stars in brand advertising.
Neither world nor Russian practice has “win-win” options for celebrities. Firstly, stars are not universal. Everyone has a certain image, character, experience, which may not fit with some brands and products.
Secondly, the work of a star's image is rarely good in isolation from a creative idea. If the idea is weak, then even the most successful celebrity will not help promote the brand. Thirdly, attracting stars to marketing campaigns is comparable to playing the lottery, in which you can not only win big, but also lose big.
The clip was shot in the style of the movie "Tron". The filming process was supervised by the son of famous director Ridley Scott, Jake. The creator of Gladiator and Alien himself was the producer of the video, who called it a “dynamic short film.”
Any celebrity is, first of all, a living person, so his behavior is unpredictable. An example of this is the situation with the Nike brand, which involved Paralympic champion Oscar Pistorius in advertising its products.
Hidden advertising in cinema
Nowadays there are many different hidden advertising mechanisms. It's safe to say: films are used to promote almost all types of products. However, the specifics of countries also influence the content of product placement to some extent.
For example, in domestic films, up to 60% of hidden advertising is for food products, with cosmetic products in second place (about 10%). The rest of the market is accounted for by cars, banking services, electronics, resorts, hotels, and communications.
There is rapid growth in the alcohol and tobacco market segment in product placement, since direct advertising of beer, alcoholic beverages and tobacco is prohibited by Russian legislation.
Eg:
Such different and effective ways to promote a product on the Internet
SEO
Almost all users visit the first three web resources of search results. Only 20-50% scroll to the end of the first page. If you want to attract users, then your site must be in the top ten. SEO optimization will help with this.
It involves correcting resource errors, editing its content taking into account key queries on your topic, often changing the structure of the site and other important work that is invisible to people, but taken into account by search engine bots.
You can’t underestimate the importance of SEO by thinking that content is for humans and bots will figure it out. SEO is now the main tool that needs to be used first, and then turn to other promotion methods.
Pros:
- relatively low costs;
- high conversion rate;
- easy identification of the target audience;
- almost complete absence of negative effect;
- increase in traffic.
Minuses:
- results can be obtained only after 3-6 months;
- complex changes to the site root are required;
- you need to constantly edit content;
- It is necessary to take into account the high demands of search engines.
contextual advertising
For example, citizen N decided to purchase a steamer. He goes into the Yandex search engine and enters “I’ll buy a steamer” in the line. And a miracle happens: advertisements for your best steamers appear in first place in the search results.
Display advertising
These are exactly the banners that make you want to immediately turn on AdBlock when they appear. However, if they are bright, original and appear in a timely manner, then you want to click on them. This type of media advertising was initially rejected on the market, but new technologies have made it modern and quite effective.
Native advertising
This internet marketing tool is progressive and made in the form of interesting “live” content. Not everyone can even understand that this is native advertising, since it fits harmoniously into the content of the site/application.
This includes special projects in popular publications, tests (for example, Buzzfeed with the test “How would you die in Game of Thrones?”), useful information from your experts on external platforms, and demonstration of the brand in films.
Email marketing
Often this type of marketing is ignored by companies because they don't want to spam their customers. However, email newsletters are a great way to stay in touch with consumers, persuade them to purchase a product, increase loyalty, and send information about upsells and special offers. But this is the case when working with mailing lists of high-level specialists.
Viral Marketing
Since the advent of this method of promoting goods, there have been many positive examples of its use (for example, the Mercedes-Benz commercial with chickens or Jean-Claude Van Damme’s epic splits in an advertisement for Volvo Trucks). However, such marketing does not always bring results, especially if the focus is on viral content.
Partnership programs
They involve business cooperation between a seller (company) and a partner, under the terms of which the partner is entitled to a certain percentage or amount from attracted clients if they perform a certain targeted action (at the discretion of the seller).
The principle is simple, and the following work models exist: PPC (pay per click), CPA (cost per action), CPS (cost per sale). That is, leads in affiliate programs can be the following: clicks, registrations, applications, orders, sales.
Ways to promote a product on social networks
Ways to promote a product on Instagram
Instagram is a convenient service that allows users to share photos and videos. Not so long ago there was skepticism towards it, but now it is considered as an excellent platform for posting advertisements. Users like bright photos and short captions for them.
Users of the service can earn money, especially if their pages are popular. Young people view the accounts of their idols with interest, so the cost of celebrity advertising posts is very high.
Ways to promote a product on Facebook
In the first case, the advertiser will need to set a daily budget and the cost of 1000 impressions. In the second, only targeted user actions are paid after the fact. Their price varies from 8 to 20 rubles, which depends on the selected settings. You can pay for advertising with a bank card or using PayPal.
Ways to promote a product on VKontakte
Until recently, VKontakte was considered a network for schoolchildren. However, the developers, following the example of other successful social networks in the field of advertising, decided not to lag behind.
We have developed our own targeting tool for VKontakte. The source of information about users on Facebook and others is the computer’s IP address, and VK takes it from the information specified in the person’s profile. What is the convenience?
A person living in the capital and coming to Barnaul for work for two days is unlikely to be interested in the new products arriving in Barnaul showrooms. VKontakte shows users advertising related to the localities in which they live permanently.
Like other social media, VK allows you to place advertisements in various formats. Large images or community advertisements are quite popular. You can post ads yourself or through the group administration.
To place an advertisement in a community, you need to pay from 200 rubles, the amount depends on user activity and the number of subscribers. For 200 rubles you can publish an ad in a group with 50 thousand followers.
If a community has an audience of millions, then the price of placement will be much higher. The cost of independent publications is 6-10 rubles per 1000 impressions. It depends on the audience coverage and the selected settings.
Unconventional ways to promote a product on the Internet
Website with virtual reality elements
When developing advertising for the RAV4 in South Africa, Toyota took into account the characteristics of the target audience as much as possible. These are people with an active lifestyle, they are not afraid of off-road conditions, they love sports, and do not spend a lot of time at the computer. An unusual event with elements of virtual reality was organized for them.
We created a 1.8 km route for cyclists that simulated exploring the site. The analogue of the cursor was the cyclist himself. Participants of the action stopped at various points along the route - sections “Models”, “Safety”, “Salon”, “Design” and “Order a test drive”.
Access to additional information was opened after hitting the “button” with the palm of the hand. Some of the elements were made of wood, and information posters were also used. If a participant, finishing, hit the “Refresh” sign with his hand, then an invigorating shower would be poured onto him from the arch.
News of the unusual site quickly spread, resulting in a 400% increase in traffic and a 433% increase in test drive applications.
Discount amount, which depends on weather conditions
During the cold season, the demand for women's Venus machines in Sweden dropped significantly. Then the Gillette company invited users to post on Instagram the riots of the elements captured in the photo, putting the action hashtag under them.
An automatic comparison took place of the weather conditions in the place from which the photo was posted with the weather observed there over many years. The lower the temperature and darker the sky, the greater the discount the user was offered to purchase the Venus machine.
The partner of the promotion was an online store. The winning author was awarded a trip to Miami.
Advertising in exchange for 10 trips on the subway
The largest Brazilian publisher of pocket-sized books, LP&M, organized an action in the metro. It consisted of placing stands with free books - masterpieces of world literature - at the entrance to the station. A ticket for 10 trips was built into the cover of the books. Book lovers received free travel, which helped improve their perception of the brand.
Those who were not attracted to reading could fall in love with books during the time they carried a travel book with them and became clients of the LP&M publishing house. In addition, the “pass” was assigned a unique number, by which the ticket was “recharged” on the promotion website: the person entered the code and received 10 more trips (for example, to give a book to a friend).
The publishing house also implemented another idea for promoting its products: it found the small format convenient and placed advertisements on pockets! More precisely, on the lining of jeans pockets, having concluded an agreement with a local manufacturer.
Excerpts from prose or poetic works, as well as the publishing house’s logo, were used as advertising text. The message of the campaign was: “great books can fit in your pocket.” The project made it possible to increase traffic to the publisher’s online store by 24% and sales by 13%.