The transition from planned tomarket inevitably led to the formation of competition. What has this phenomenon changed in the life of enterprises? To date, they are forced to produce competitive products. This is one of the prerequisites for the successful operation of any company, as well as its profit. To solve such important tasks facing the enterprise, a marketing service emerged and got its rapid development. Its activities are carried out in various directions.
This marketing research and developmentthe main directions of pricing, and the organization of promotions, and the formation of a database of orders. However, one of the most important areas in the activities of these services is still the promotion of goods on the market. It provides for the formation of the buyers subjective perception of the product offered by the company in order to extract profits.
Definition of "product promotion"
What do representatives of marketing services includeto this term? Under the promotion of goods understand such activities that are aimed at increasing sales. At the same time, its effectiveness becomes a consequence of communicative influences on consumers, partners and personnel. Thus, the promotion of goods can be understood as any activity of the company, which involves conveying information about yourself and your products to potential and actual consumers, as well as convincing customers of the need to purchase the proposed products.
Based on existing todayconditions of the company manage communications not only with their direct consumers. They have to do this with intermediaries engaged in the purchase and sale of goods, as well as with government agencies, with shareholders and with the general public. All these people involved in the interaction process are united into the notion of stakeholders.
By promotion it is understoodsales promotion activities and creating an audience of loyal customers. In order to describe the essence of this economic concept, we can consider a simple model of relationships existing in the market. So, between sellers and buyers there is an exchange of any product for money. At the same time, the parties exchange information. This is marketing communication. They represent not only an advancement tool, but also a catalyst that initiates and accelerates the process of market relations taking place. Without this marketing activity it becomes impossible to sell even the newest high-tech product. At the same time, promotion can be expressed in any kind of communication aimed at selling. But the objectives of this marketing activity include not only the submission of information about the new product. Promotion implies an impact on the consumer.
After that, the client should formthe need for a quick purchase. This is the responsibility of such a promotion tool as sales promotion. The importance of marketing activities is particularly increasing due to the increased rate of product updates, which is the case in almost every industry. This task is complicated by the fact that the introduction of a high-tech product to the market is associated with the unpredictable reaction of consumers.
Promotion of goods and services contributes toimage of the prestige of the company and its product. If the organization works in the field of high technologies, then with the right positioning, an image of an innovative enterprise is created.
It is also important to informpotential buyers about the characteristics possessed by the product. Thanks to the promotion, customers form in their minds an image of a product that has unique properties. In general, such activity contributes to the gradual formation around the company of an information environment conducive to the marketing of products. That is why it can be concluded that product promotion has one of the key roles in marketing activities. In this case, the basis of this direction is communication.
Solvable tasks
What are the goals of product promotion?The overall challenge facing this activity is to stimulate demand. That is, the level of sales must be increased or maintained at the same level (in the event that it falls). However, this global goal can be divided into two.
The first is the sale of goods, andthe second is the improvement of the image of the enterprise. Each of these private goals leads to a stimulation of demand, that is, it is aimed at sales. But there are differences between them. In the first case, there is a stimulation of demand for a particular product. As for the second direction, it contributes to the promotion of the image of the enterprise, its brand and trademark. In case of creating a positive image of the company, the buyer will associate his opinion about it not only with a specific model, but also with all the products of this brand. That is why the second goal of product promotion is more extensive. It performs the task of selling not one or another product or service, but stimulates the demand for all that the company offers.
Main functions
Carrying out product promotion, marketing achieves the following:
1. Informs consumers about the product and its parameters. This feature is very important for sales.After all, the competitive advantages possessed by the product, as well as the innovations associated with it, are absolutely meaningless until the buyer knows about them. Reporting such information to the right audience means the most important promotion function.
2. Forms an image of prestige, innovation and low prices. The key word in this case is “image”.Marketing activities are designed to form a consumer image of the product, which will distinguish it from the general range of products. This indicates the quality of the product, far superior to those that he has.
3. Supports the popularity of the proposed product. This function is designed to remind consumers of the need and importance of a product in their lives.
4. Changes the stereotypical perception of products or services. An example of such an approach is to increasethe term of the service maintenance of the equipment of the South Korean corporation Samsung. The promotion campaign built on this was intended to convince consumers that its devices are not inferior in quality to their Japanese counterparts and have lower prices.
5. Stimulates those involved in the sales system. In the case when suppliers sell their products not to end consumers, but to intermediaries, marketing services need to focus on final demand.
6. Promotes more expensive products. Sometimes the price of products is the decisive factor for the buyer to purchase it, if the selected item or service has a new unique quality.
7. Distributes favorable information about the company. Often, such a marketing move is called hidden advertising. This may include sponsorship and patronage, social projects and so on.
Promotion strategy
How do marketing services approachdeveloping communications to promote products and services? The first step in this direction is to determine the target audience (CA). After this is determined by the desired response, which often appears making a purchase. Next is the text of the appeal. It is necessary that it attracted the attention of buyers, retained their interest for a certain period of time, and also awakened the desire to make a purchase and encouraged them to take action.
Further, when goods are promoted in the services market, the final stage begins. It is a definition of the most effective communication channels that are characteristic of a specific target audience.
In world practice there is a division onATL and BTL technologies. The name of the first of them is an abbreviation of the English words above-the-line. ATL-technologies are the whole complex of marketing communications. They include classic (traditional) types of advertising, which use radio, press and television. This also includes internal, outdoor, printing advertising.
The term BTL is understood as technology related todisplay of goods. This also includes event and direct marketing, as well as public relations. Moreover, ATL-technologies are indirect sales promotion, and BTL - direct. The latter option involves the implementation of direct communication with the buyer.
Помимо этого, различия ATL и BTL заключаются и в the tasks they perform. So, with the help of the first technologies, the company creates a brand, invents a legend, and also uses the technology of creating associations with consumers. As for BTL technologies, they are designed to demonstrate the character of the brand in real life.
Sales strategy
What else will be needed for the company's marketing service?to promote a new product? To do this, choose the right sales strategy. The most commonly used of these are three types. It:
- PULL. With this strategy, products are sold through an existing distribution chain. In this case, there is a stimulation of the final demand of buyers.
- Push This product promotion strategy allows you to push the product along a well-established trade chain by encouraging sales staff and intermediaries.
- Mixed. This strategy combines the elements of twoprevious. With its use, sales in the market is carried out due to the impact on both the intermediary and the consumer. Mixed strategy, as a rule, is used in the promotion of goods created with the use of high technology.
Ways of implementation
Depending on the type of service chosenmarketing strategy is the formation of a combination of methods of product implementation. In this case, there can be used four basic ways to promote goods They include such tools of impact on the end user:
- advertising;
- public relations;
- sales promotion;
- personal sales.
Which of these elements plays a major role inpromotion system? A special function in the communication marketing complex is performed by sales promotion. If we consider personal sales, here the price comes to the fore, which is voiced during the presentation of the product. You can also say that a key factor in the activities of marketing services and product promotion, leading to success, is advertising. To increase the interest of suppliers in procurement, public relations is needed, that is, PR activity.
Consider these means of product promotion in more detail.
Public relations
This item is used in all kinds.product promotion, plays a key role in making the company profit. What are public relations (PR)? These are activities consisting of a combination of actions aimed at improving the prestige of the company and its image. As the main PP-tools most often used is such a technique as the appearance of a message in the news feeds about the company itself, as well as its products. Often, company representatives hold speeches in public, articles about its activities appear in magazines and newspapers. Sometimes the company is on the path of sponsorship, which benefits the society.
Public relations is one of the methodsproduct promotion, solving the problem of forming a positive attitude to the company not only among potential and real customers, but also among various public groups that are able to influence the implementation of the company’s goals.
Using PR Marketing Product Promotionallows you to solve a number of problems. First of all, thanks to his public relations tools, he allows the company to promote a product on the market. In addition, such communications are carried out using the press. This allows you to timely publish an article that would restore the company's image after unfriendly attacks from competitors. Such activities allow you to build strong relationships with investors, as well as demonstrate the responsibility of the company. And, most importantly, PR lobbies the interests of the enterprise.
If you compare PR activities with othersareas of marketing, but it has several advantages. First of all, in the eyes of buyers, PR has a great sense of authenticity of information. All this is possible due to the fact that such publications are considered non-commercial. PR covers a wide audience in which people are not responsive to advertising. This marketing communication channel tells about the product in the brightest colors, while creating the appearance of an objective assessment of its characteristics.
Advertising
This means of product promotion ispublic form of communication, which in any direction is presented in cash. Preparation of advertising and product promotion are important moments in the activities of marketing services. At the same time, information is provided for the target audience on a fee basis.
What are the main characteristics of thiscommunication marketing channel? Advertising affects a wide audience of potential customers. She is admonishing, but she is not able to change the idea of the product and the company in a short time. That is why such an element of product promotion requires more time in order for the consumer to create trusting attitudes towards the products and services offered, as well as preferences. In order to solve this problem, advertising must be on the heels of buyers for several months. After achieving the goal, the company should reduce its activity in this direction. However, the effect already obtained should be constantly maintained.
Among the main features of advertising can be highlighted its impersonality and expressiveness. However, she is only capable of a monologue with the audience. Dialogue and advertising are incompatible things.
Какова основная цель данного маркетингового tool? Advertising introduces a potential client with the product of the company and is intended to convince him of the need to purchase the product. Radio and media outlets, posters and billboards, advertising leaflets in magazines and newspapers, TV and the Internet serve as channels for the dissemination of information.
When comparing PR and advertising it becomes clearthat the latter is necessary when promoting (marketing) goods to ordinary consumers. Who needs PR? It is perfect for companies whose clients are other companies or even governments.
Personal selling
What is this componentmarketing activities? Personal sale (or PP) is carried out with the direct contact of a representative of the company and a potential client. It becomes the most important tool for promotion if the goods require a demonstration or additional explanations.
Personal selling is prettyflexible tool that is used to increase sales. After all, a representative of the company has the ability to timely respond to questions raised by the buyer, which eliminates his doubts.
Персональная продажа обладает рядом особенностей.It is personal, as it is focused on direct communication of the seller and the buyer. This allows the client to form a trusting attitude towards the company and promptly resolve all disagreements that occur. In addition, there is a feedback, enabling the seller to obtain important information from the buyer. In the future, this may positively affect the improvement of product quality, as well as the expansion of the client base.
It is worth keeping in mind that personalized salesis a very expensive promotion tool. Its use is beneficial when making transactions involving the implementation of high-tech product, as well as the procurement of goods of wide application.
Sales promotion
This element of marketing communications is directed either to distributors or buyers. It is important to remember about the interest in the work of their own employees.
Стимулирование сбыта, к примеру, имеет место при distribution of coupons and samples, free presentation of goods, product demonstrations, at conferences, bonuses and credit system. Among the features of this sales tool, they highlight the additional benefit that a buyer can get when making a purchase. Sometimes it is a gift, the best price offer or additional service.
Another main feature of sales promotionis its information content. As a rule, the organizers of the action for further benefits ask the client to fill out a form or leave contact information. However, it should be borne in mind that sales promotion tools often have a short-term effect. Their main goal is to motivate to buy goods here and now.
All types of product promotion are complementary. However, each of them still plays its own specific role.
Так, реклама, выполняющая информативную функцию, able to reach a wide target audience. Without it, it is much more difficult to conduct personal sales. The use of PR is necessary to convince potential buyers that the company's statements about the unique properties of the product are true. At the same time advertising will not give a special effect without personal contact and flexibility, which are present during personal sales. The effect of a media report about the company in this case may be missed. As for sales promotion, it serves as an excellent addition to the advertising campaign. In the short term, it significantly increases sales.
