The field of marketing is quite new in the domestic business market. For this reason, many of its processes are not given due attention. So, for example, the issue of promotion is rarely given a significant place. Most executives who have taken the reins of management under CCCP simply do not understand why they should spend time and money on activities that they do not see as promising. But in fact, marketing is much more important, and if used correctly, it can significantly improve the performance of enterprises.
Promotion: what and how
Product promotion is one of the main activities of all, without exception, companies in developed countries. It is the correctly chosen promotion strategy that provides the leading position of the company in the consumer market. And this is important.
We can say that a marketing promotion strategy is a plan to effectively increase the sale of goods and services. Such events require some research and preparation. Often they are implemented by a group of marketers of different specializations. The promotion strategy shows its effectiveness through the prism of economic indicators of the company.
Promotion strategy development
Product promotion strategies should be part of company planning. As you know, each company regularly conducts strategic and tactical planning. These activities involve the creation of long-term or short-term plans with the distribution of responsibility of each department and direction. Also, during the planning process, a budget for various events is determined.
A promotion strategy requires its development, budget and planning. The budget can be allocated according to the residual or target principle. Residual provides for the allocation of funds, depending on what remains after the development of all other plans. Of course, this method of budgeting is the most economical, but the results from it are much smaller.
Targeted budget education seems to be the most effective financial solution for marketing activities. With this method, finances are allocated for specific projects that contribute to achieving the goals of the company.
Effect of promotion
When developing a quality promotion strategy, the result can exceed all possible expectations. It is important to consider that for the purchase of your product the buyer is not enough just an economic stimulus. Each client must understand that he purchases a product that will correspond to his image and style, position in society and personal convictions. So, for example, the social orientation of the company often sets as its goal the conquest of a certain market of customers who are not indifferent to those problems for which the company allocates funds.
In any company, the sphere of marketing and promotion can be either a loss-making element or a department that brings huge profits. It all depends on the attitude of the leadership to this department and its activities.