The transition of the economy from a planned to a market orientation inevitably entailed the formation of competition. What has this phenomenon changed in the life of enterprises? Today they are forced to produce competitive products. This is one of the prerequisites for the successful functioning of any company, as well as its profit. To solve such important tasks facing the enterprise, a marketing service arose and gained its rapid development. Her activities are carried out in various directions.
This is marketing research, and the development of the main directions of pricing policy, and the organization of promotions, and the formation of an order base. 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 buyers' subjective perception of the product offered by the company in order to profit.
The definition of "product promotion"
What do representatives of marketing services refer to this term? Under the promotion of goods understand such events that are aimed at increasing sales. At the same time, its effectiveness is the result of communicative influences on consumers, partners and staff. Thus, the promotion of goods can be understood as any activity of the company, which involves communicating information about yourself and your products to potential and real consumers, as well as convincing customers of the need to purchase the proposed products.
Based on the current conditions, companies manage communications not only with their direct consumers. They have to do this with intermediaries involved in the procurement and sale of goods, as well as with government agencies, shareholders and the general public. All these people involved in the interaction process are united in the concept of stakeholders.
By promotion itself is meant an activity that stimulates sales and creates an audience of loyal customers. In order to describe the essence of this economic concept, we can consider a simple model of the relationship existing on the market. So, between sellers and buyers there is an exchange of a product for money. At the same time, the parties exchange information. This is marketing communication. They are not only an instrument of promotion, but also a catalyst that launches and accelerates the process of existing market relations. Without this marketing activity, it becomes impossible to market even the latest high-tech product. At the same time, promotion can be expressed in any form of communication pursuing the goal of selling. But the tasks of this marketing activity include not only providing information about a new product. Promotion implies an impact on the consumer.
After this, the customer should have a need for an early purchase. A promotion tool such as sales promotion is responsible for this. The importance of marketing activity is especially growing due to the increased pace of product updates, which takes place in almost every industry. This task is becoming more complicated due to the fact that the launch of a high-tech product on the market is associated with the unpredictability of consumer reactions.
The promotion of goods and services contributes to creating an image of the prestige of the company and its product. If the organization operates in the field of high technology, then with the right positioning, an image of an innovative enterprise is created.
It also becomes important to inform potential buyers about the characteristics that the product possesses. Thanks to the promotion, customers form in their minds an image of a product that has unique properties. In general, such activities contribute to the gradual formation of an information environment around the company that is favorable for the sale of products. That is why it can be concluded that the promotion of goods assigned one of the key roles in marketing activities. Moreover, the basis of this direction is communication.
Tasks to be Solved
What are the goals of product promotion? The overall challenge facing this type of activity is to stimulate demand. That is, the level of sales should be increased or maintained at the same level (in the event that there is a fall). However, this global goal can be divided into two.
The first of these is the sale of goods, and the second is the improvement of the image of the enterprise. Each of these private goals leads to stimulation of demand, that is, is aimed at sales. But there are differences between them. In the first case, there is a stimulation of demand for a single product. As for the second direction, it helps to promote the image of the enterprise, its trademark and trademark. In the case of creating a positive image of the company, the buyer will associate his opinion about it not only with a specific model, but with all the products of this brand. That is why the second goal of product promotion is more extensive. It fulfills the task of selling not one or another product or service, but stimulates the demand for everything that the company offers.
Main functions
Carrying out the promotion of goods, marketing achieves the following:
1 . Informs consumers about the product and its parameters. This feature is very important for marketing. After all, the competitive advantages that the product possesses, as well as the related innovations, are absolutely meaningless until the buyer knows about them. Bringing such information to the right audience also means fulfilling 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 the consumers' view of the product, which will distinguish it from the general range of products. At the same time, the quality of the goods is significantly superior to those that are available to him.
3 . Maintains the popularity of the proposed product. This function is designed to remind consumers of the need and importance of a product in their life.
4 . Changes the stereotypical perception of products or services. An example of this approach is the extension of the service life of Samsung South Korean equipment. The promotion campaign built on this was designed to convince consumers that its devices are not inferior in quality to Japanese counterparts and at the same time have lower prices.
5. Stimulates those who participate in the marketing system. In the case when suppliers sell their goods not to end consumers, but to intermediaries, marketing services need to focus on final demand.
6. Promotes more expensive products. Sometimes the price of a product is for the buyer a decisive factor for its purchase, 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 includes sponsorship and patronage, social projects and so on.
Promotion strategy
How do marketing services approach the development of communications to promote goods and services? The first step in this direction is to determine the target audience (CA). After that, the desired response is determined, which most often is the purchase. Next, the text of the appeal is composed. It is necessary that it attracts the attention of buyers, holds their interest for a certain period of time, and also arouses the desire to make a purchase and encourages active action.
Then, with the promotion of goods in the services market, the final stage begins. It represents the definition of the most effective communication channels that are characteristic of a specific target audience.
In world practice, there is a division into ATL and BTL technologies. The name of the first of them is an abbreviation of the English words above-the-line. ATL-technologies are a whole complex of marketing communications. They include classic (traditional) types of advertising, which use radio, press and television. This also includes indoor, outdoor, print advertising.
The term BTL means technologies related to the display of goods. This also includes event- and direct-marketing, as well as PR. Moreover, ATL-technology is an indirect sales stimulus, and BTL - direct. The latter option involves direct communication with the buyer.
In addition, the differences between ATL and BTL lie in the tasks they perform. So, with the help of the first technologies, the company creates a brand, invents a legend, and also uses the technique of creating associations with consumers. As for BTL technologies, they are designed in real life to demonstrate the character of the brand.
Sales strategy
What else will the marketing service of the company need to promote a new product? To do this, you need to choose the right sales strategy. The most commonly used of them there are three types. It:
- PULL. With this strategy, products are sold through an existing distribution chain. At the same time, the final demand of buyers is stimulated.
- PUSH. This product promotion strategy allows you to push the product along the established trade chain by stimulating sales staff and intermediaries.
- Mixed. This strategy combines the elements of the two previous ones. With its use, marketing on the market is carried out due to the impact on both the intermediary and the consumer. A mixed strategy, as a rule, is used when promoting a product created using high technology.
Implementation methods
Depending on the type of strategy chosen by the marketing service, a combination of product implementation methods is formed. In this case, four main methods of product promotion can be used. They include such tools for influencing the final consumer:
- advertising;
- public relations;
- sales promotion;
- personal sales.
Which of these elements plays a major role in the product promotion system? A special function in the communication marketing complex is performed by sales promotion. If we consider personal sales, then here comes to the fore the price, which is announced at the presentation of the product. You can also say that advertising is a key factor in the activities of marketing services and product promotion, leading to success. To increase the interest of suppliers in procurement, we need public relations, that is, the implementation of public relations activities.
Consider these means of promoting goods in more detail.
Public relations
This element, used in all types of product promotion, plays a key role in the company's profit. What are public relations (PR)? These are events consisting of a combination of actions aimed at improving the prestige of the company and its image. As the main PP-tools, the most commonly used technique is the appearance of a message in the news feeds about the company itself, as well as about its products. Often, representatives of an enterprise make public appearances, and articles about its activities appear in magazines and newspapers. Sometimes a company follows the path of sponsorship that benefits the community.
Public relations are one of the methods of product promotion, solving the problem of creating a positive attitude towards the company not only among potential and real customers, but also among various public groups that can influence the implementation of the company’s goals.
With the help of PR, the marketing promotion of a product allows you to solve a number of problems. First of all, thanks to the public relations tools used by him, they allow to promote a product manufactured by the company 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 image of the company after unfriendly attacks by competitors. Such an activity allows you to establish strong ties with investors, as well as demonstrate the responsibility of the company. And, most importantly, PR is lobbying for the interests of the enterprise.
If we compare PR-activity with other areas of marketing activity, but it has several advantages. First of all, in the eyes of buyers, PR is characterized by a great feeling of the reliability of information. All this becomes possible due to the fact that such publications are considered non-profit. PR covers a wide audience, which includes people who are immune 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 product promotion tool is a social form of communication, which is presented in any form in cash. Advertising preparation and product promotion are important points in the activities of marketing services. At the same time, information is provided to the target audience on a paid basis.
What are the main features of this communication marketing channel? Advertising affects a wide audience of potential customers. It is exhortatory in nature, but is not able to quickly change the way customers perceive a product and a company. That is why such an element of product promotion requires more time for the consumer to have a trusting relationship with the offered products and services, as well as change preferences. In order to solve this problem, advertising should be heard by customers 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 depersonalization and expressiveness. However, she is only capable of a monologue with the audience. Dialogue and advertising are incompatible things.
What is the main purpose of this marketing tool? Advertising introduces a potential customer to the company's products and is designed to convince him of the need to purchase a product. In this case, channels of information dissemination are radio stations and the media, posters and billboards, advertising leaflets in magazines and newspapers, TV and the Internet.
When comparing PR and advertising, it becomes clear that the latter is necessary when promoting (selling) goods to ordinary consumers. Who needs PR? It is perfect for companies whose clients are other companies or even states.
Personal sale
What is this component of marketing activity? Personal sale (or PP) is carried out with direct contact of the company representative and potential client. It becomes the most important promotion tool if the goods require a demonstration or additional explanation.
Personal selling is a fairly flexible tool that is used to increase sales. After all, a company representative has the ability to promptly respond to questions raised by the buyer, thereby eliminating his doubts.
Personal sale has a number of features. It is personal in nature, as it is focused on direct communication between the seller and the buyer. This allows you to build a customer confidence in the company and quickly resolve all differences. In addition, there is feedback, which enables the seller to receive important information from the buyer. In the future, this can positively affect the improvement of product quality, as well as the expansion of the customer base.
It should be borne in mind that personal selling is a very expensive promotion tool. Its use is advantageous in transactions involving the sale of a high-tech product, as well as in the procurement of goods of widespread use.
Sales promotion
This element of marketing communications is aimed either at distributors or at buyers. It is also important to remember the interest in the work of our own employees.
Sales promotion, for example, takes place during the distribution of coupons and samples, the free presentation of goods, product demonstrations, conferences, bonuses and credit systems. Among the features of this sales tool are the additional benefits that a buyer can get when he makes a purchase. Sometimes it is a gift, the best price offer or an additional service.
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Thus, advertising, performing an informative function, is able to reach a wide target audience. Without it, it becomes 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 goods are true. At the same time, advertising will not give much effect without the personal contact and flexibility that are present in personal sales. The effect of a media report on a company in this case may be lost. As for sales promotion, it serves as an excellent complement to the advertising campaign. In the short term, with its help, sales increase significantly.