The transition of the economy from a planned direction to a market one inevitably led to 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 received its rapid development. Its 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 make a profit.
Definition of the concept of "product promotion"
Whatrepresentatives of marketing services refer to this term? Under the promotion of goods understand such activities that are aimed at increasing the level of sales. At the same time, its effectiveness becomes a consequence of communicative influences on consumers, partners and staff. Thus, promotion of a product can be understood as any activity of a company that involves conveying information about itself and its products to potential and real consumers, as well as convincing customers of the need to purchase the proposed products.
Based on today's conditions, companies manage communications not only with their direct consumers. They have to do this with intermediaries who purchase and sell goods, as well as with government agencies, with shareholders and with the general public. All these people involved in the interaction process are united in the concept of stakeholders.
Promotion itself is understood as 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 relationships that exist 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 communications. They are not only a promotion tool, but also a catalyst that launches and accelerates the process of existing market relations. Without this marketing activity becomesimpossible to sell even the newest high-tech product. At the same time, promotion can be expressed in any form of communication aimed at making sales. But the tasks of this marketing activity include not only the supply of information about a new product. Promotion also implies an impact on the consumer.
After that, the client should form the need for a quick purchase. This is the responsibility of such a promotional tool as sales promotion. The importance of marketing activities is especially growing due to the increased rate of product innovation that occurs in almost every industry. This task is also complicated due to the fact that the introduction of a high-tech product to the market is associated with unpredictable consumer reactions.
Promotion of goods and services contributes to the image of the prestige of the company and its product. If an 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 inform potential buyers about the characteristics of the product. Through 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 is assigned one of the key roles in marketing activities. At the same time, the basis of this direction iscommunications.
Problems to be solved
What are the promotional goals? 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 it falls). 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 the stimulation of demand, that is, it is aimed at sales. But there are also differences between them. In the first case, the demand for a particular product is stimulated. As for the second direction, it promotes the image of the enterprise, its trademark and trade mark. 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 also with all products of this brand. That is why the second goal of product promotion is more extensive. It performs the task of selling not this or that product or service, but stimulates the demand for everything that the enterprise offers.
Main Functions
By promoting a product, marketing achieves the following:
1. Informs consumers about the product and its parameters. This function is very important for marketing. After all, the competitive advantages that a product has, as well as the innovations associated with it, are absolutely meaningless until the buyer knows about them. Providing such information tothe right audience and means performing the most important promotion function.
2. Creates an image of prestige, innovation and low prices. The key word here is "image". Marketing activity is designed to form in consumers such an idea about the product, which will distinguish it from the general range of products. At the same time, the quality of the product is indicated, significantly superior to those that it has.
3. Supports the popularity of the proposed product. This feature is designed to remind consumers of the need and importance of a particular product in their lives.
4. Changes the stereotypical perception of products or services. An example of this approach is the increase in the service life of the equipment of the South Korean corporation Samsung. 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 event that 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 a decisive factor for the buyer to purchase it, if the chosen item or service has a new unique quality.
7. Spreads favorable information about the company. Often such a marketing ploy is called hidden advertising. This includes sponsorship and patronage, social projects, etc.
Promotion strategy
How do marketing teams approach developing communications to promote products and services? The first step in this direction is to determine the target audience (TA). After that, the desired response is determined, which is most often the purchase. Next is the text of the appeal. It needs to grab the attention of buyers, hold their interest for a certain period of time, and also arouse the desire to make a purchase and encourage active action.
Next, when promoting goods on the service market, the final stage comes. It is a definition of the most effective communication channels that are typical for 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, for which radio, press and television are used. This also includes indoor, outdoor, print advertising.
The term BTL is understood as technologies related to the display of goods. This also includes event and direct marketing, as well as PR. Moreover, ATL-technologies are indirect sales promotion, and BTL - direct. The last option involves direct communication with the buyer.
Besides this, the differences between ATL and BTL lie in thetasks. So, with the help of the first technologies, the company creates a brand, invents a legend, and also uses the technique of creating associations among consumers. As for BTL technologies, they are designed to demonstrate the character of the brand in real life.
Sales strategy
What else will a company's marketing department need to promote a new product? To do this, you need to choose the right sales strategy. There are three types most commonly used. This is:
- 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 promotion strategy allows you to push the product along the established trade chain by incentivizing sales staff and intermediaries.
- Mixed. This strategy combines elements of the previous two. When it is used, the sale on the market is carried out due to the impact on both the intermediary and the consumer. A mixed strategy is usually used when promoting a high-tech product.
Methods of implementation
Depending on the type of strategy chosen by the marketing service, a combination of product implementation methods is formed. In this case, four main ways to promote a product can be used. They include the following tools to influence the end consumer:
- advertising;
- public relations;
- sales promotion;
- personalsales.
Which of these elements plays a major role in the product promotion system? A special function in the communication marketing mix is performed by sales promotion. If we consider personal sales, then the price comes to the fore, which is announced during 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, public relations are needed, that is, the implementation of PR activities.
Let's take a closer look at these promotional tools.
Public Relations
This element, used in all types of product promotion, plays a key role in the company's profit. What is 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, 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 the enterprise make public appearances, articles about its activities appear in magazines and newspapers. Sometimes a company takes the path of sponsorship that benefits society.
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.goals.
With the help of PR, marketing promotion of goods allows you to solve a number of problems. First of all, thanks to the tools of public relations used by him, they make it possible to promote the product manufactured by the company on the market. In addition, such communications are carried out using the press. This allows you to publish an article in a timely manner that would restore the company's image after unfriendly attacks from competitors. Such activities allow you to establish strong relationships with investors, as well as demonstrate the responsibility of the company. And, most importantly, PR lobbies the interests of the enterprise.
If we compare PR activities with other areas of marketing activities, but it has a number of advantages. First of all, in the eyes of buyers, PR is distinguished by a great sense of the reliability of information. All this is made possible by the fact that such publications are considered non-commercial. PR covers a wide audience, which includes people who are immune to advertising. This marketing communication channel communicates the product in the most vivid colors, while creating the appearance of an objective assessment of its characteristics.
Advertising
This means of product promotion is a public form of communication, which is presented in cash in any direction. Preparation of advertising and promotion of goods are important moments in the activities of marketing services. At the same time, the presentation of information for the target audience is carried out on a paid basis.
What are the main characteristics of this communication marketing channel? Advertising affects a vast audience of potential customers. It is persuasive in nature, but it is not capable of changing the perception of buyers about the product and the company in a short time. That is why such an element of product promotion requires more time for the consumer to build trust in the products and services offered, as well as change preferences. In order to solve this problem, advertising must be heard by buyers for several months. After achieving the goal, the company should reduce its activity in this direction. However, the effect already obtained must be constantly maintained.
Among the main features of advertising, one can single out its impersonality and expressiveness. At the same time, 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 product and is designed to convince him of the need to purchase the product. In this case, radio stations and the media, posters and billboards, advertising booklets in magazines and newspapers, TV and the Internet serve as channels for disseminating information.
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 governments.
Personal selling
What is this component of marketing activity? Personal selling (or PP) is carried out with direct contact between a company representative and a potential client. It becomes the most important promotional tool if the products require a demonstration or additional explanations.
Personal selling is a fairly flexible tool used to increase sales. After all, a representative of the company has the opportunity to timely answer the buyer's questions, which eliminates his doubts.
Personal selling 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 the client to form a trusting attitude towards the company and promptly resolve all existing disagreements. In addition, there is also feedback, enabling the seller to receive important information from the buyer. In the future, this may have a positive effect on improving product quality, as well as expanding the customer base.
Keep in mind that personal selling is a very expensive promotional tool. Its use is beneficial when making transactions involving the sale of a high-tech product, as well as when purchasing goods for a wide range of applications.
Sales Promotion
This element of marketing communications is directed to either distributors or buyers. At the same time, it is important to keep in mind the interestin the work of their own employees.
Sales promotion, for example, takes place in the distribution of coupons and samples, free product introductions, product demonstrations, conferences, bonuses and credit systems. Among the features of this sales tool, they highlight the additional benefit that the buyer can receive when he makes a purchase. Sometimes it's a gift, a better deal, or an extra service.
Another main feature of sales promotion is its information content. As a rule, the organizers of the action, in order to obtain further benefits, ask the client to fill out a questionnaire or leave contact information. However, it should be borne in mind that sales promotion tools most often have a short effect. Their main goal is to motivate to buy a product here and now.
All promotions are complementary. However, each of them still plays a specific role.
Thus, advertising that performs 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 claims about the unique properties of the product are true. However, advertising will not have much effect without the personal touch and flexibility that comes with personal selling. The effect of the message about the company made in the media in this case may be missed. As for the incentivesales, it serves as a great addition to the advertising campaign. In the short term, with its help, sales increase significantly.
