COMMUNICATION POLICY
The essence of the organization’s communication policy, its place
in the marketing mix
The importance of communications in business is determined by the fact that:
Communication is the source and carrier of information;
Communication participants obtain information through communication with colleagues inside and outside their organizations;
Communication acts as a tool of high efficiency in the implementation of the developed business strategy.
Communication policy in the marketing system is a strategic course of action of an enterprise (or its representatives) aimed at planning and implementing the interaction of the company with all subjects of the marketing system based on a well-founded strategy for using a set of communication tools (communication mix) that ensure stable and effective generation of demand and promotion offers (of goods and services) on the market in order to satisfy the needs of customers and make a profit . At the same time, communication policy is also considered as a process of developing a set of measures to ensure effective interaction between business partners, organizing advertising, sales promotion, public relations and personal selling.
In its most commonly used form, the marketing mix includes four sub-mixes of marketing. This is a product mix, a contractual mix, a communication mix, a distribution mix (Fig. 1). Each submix includes an independent set of activities, the implementation of which forms the corresponding policy in the field of marketing (Table 1). For example, the product mix forms a product policy, which includes all product-related activities that contribute to the fullest recognition of the product by the consumer. Such activities may be: design, engineering or development of a product, its design, product quality, packaging, brand policy, customer service, warranty policy, product diversification, product variation, assortment policy, etc.
Contractual policy involves carrying out activities through which the terms of the act of purchase and sale of goods are agreed upon and this act is formalized in the form of a contract. Such measures, as a rule, include pricing policy, a system of discounts and surcharges, terms of delivery of goods and their payment, as well as credit policy.
The distribution policy is carried out with the aim of timely delivery of goods from the place of their manufacture to the recipient. It is carried out through such activities as analysis and justification of distribution channels, marketing logistics, trade policy, marketing means policy, production force location policy, consumer and market location policy, supply policy, finished product warehousing policy, etc.
For example, the purpose of product and contract policy is to create an offer for the market.
Table 1 – Marketing policy tools
| Product policy | Contract policy | Distribution policy | Communication policy |
Product design Product packaging Product quality Brand policy Diversification Product differentiation policy Product variation policy Assortment policy Warranty and consumer service policy Brand policy |
Pricing policy System of discounts and allowances Terms of delivery of goods and their payment Credit policy System of incentives and premium prices Promotional pricing policy Price differentiation policy High price strategy Medium price strategy Low price strategy |
Analysis and selection of product distribution channels Marketing-logistics Trade policy Marketing policy Policy for the location of productive forces Policy for the location of consumers and markets Supply policy Policy for warehousing finished products Selection of intermediary organizations for the distribution of goods |
Organization of interaction between the offeror and subjects of the marketing system Planning of business communications Advertising Personal selling Public relations organization Sponsorship policy Brand policy for advertising about a product |
*Source:
The task of communication policy is to organize the interaction of an enterprise - manufacturer (or distributor) of products with all subjects of the marketing system to ensure stable and effective activities to generate demand and promote goods and services to the market in order to satisfy the needs of customers and make a profit. An effective communication policy is based on activities such as planning and organizing business communications, i.e. relationships with partners, competitors and consumers, advertising, sales promotion, brand promotion, organizing public relations and personal selling.
The means of implementing communication policy are marketing communications tools, among which Maslova cites the following:
2. Public relations
3. Sales promotion
4. Personal sales
5. Sponsoring
6. Product placement
7. Exhibition events
Without exception, all means of the marketing communications system (QMS) have their undeniable advantages and obvious disadvantages. No single QMS tool is able to provide effective communication in any emerging market situation to all types of communicators without exception.
It is also necessary to pay attention to the complex of promotional means, united by the concept of “sales promotion”, which largely replaces advertising. This trend is reinforced by the following factors:
Increased qualifications and ability of employees to use incentives;
The desire of business leaders to quickly obtain results;
Intensification of competition, which requires the use of individual and original means of stimulation.
Sales promotion tools include catalogs, samples, promotional gifts, entertainment events, exhibitions, price promotions, competitions, and lotteries.
Sales promotion requires significant financial resources, so there is a need for preliminary research of the target audience to clarify attitudes towards the choice and design of incentive measures. A negative survey result clearly indicates that the planned measures should be abandoned, but a positive assessment often does not guarantee success. During preliminary testing, you can specify the ways to implement a particular incentive method, for example, choose the prizes that will be awarded to the winners of the competition.
In turn, the goals of marketing communications form a complex hierarchical system. The main role in it belongs to such goals as demand formation and sales promotion. It is significant that in Soviet economic literature the abbreviation FOSSTIS (demand formation, sales stimulation) was used for a long time as a substitute for the very concept of “marketing communications”.
Subordinate goals that develop the main one are goals such as:
Informing about the existence of the communicator, about the goods it produces, their quality, etc.;
Consumer motivation;
Generating, shaping and updating buyer needs;
Maintaining friendly relations and mutual understanding between the organization and its public, partners in marketing activities;
Formation of a favorable image of the organization;
Informing the public about the activities of the organization;
Attracting the attention of desired audiences to the activities of organizations;
Providing information about goods produced by the company;
Formation of buyer's favor towards the company's brand;
Exhortation;
Formation of buyer preference for the brand and conviction of the need to make a purchase;
Stimulating the act of purchase;
A reminder about the company, its products, etc.
It is obvious that the multiplicity and diversity of the goals of marketing communications, their specificity, which is expressed in the subjectivity of the addressee’s perception of communication signals, do not allow the scheme to claim either an unambiguous interpretation of the relationships between individual goals and their groups, or, moreover, a comprehensive, exhaustive character. Nevertheless, the diagram clearly illustrates the complex nature of these relationships, the possibility and necessity of ranking goals according to their subordination.
It is also necessary to note the dependence of the choice of communication goals on many factors: the specifics of the company’s activities, its type, the target market, the characteristics of the products produced, the characteristics of the communication recipient, the specific conditions currently prevailing in the market, and much more.
The communicator can also attract the attention of consumers or intermediaries using public relations techniques. They could be: an editorial in a newspaper or magazine about the company's use of new technologies; interview with a manager or employee of a company on television or radio; initiating a round table at a scientific conference, etc., etc.
Personal contacts with a specific buyer or a small group of them are more effectively established during personal selling (an element of direct marketing).
All four of the above main means of marketing communications (advertising, public relations, sales promotion and direct marketing) form a complex, sometimes called by analogy with the marketing mix (marketing mix) - “communication mix” or “promotional mixture” (eng. promotion mix, promotion blend). Elements of these basic communication means are present in the structure of such specific, complex synthetic means and techniques as Branded Identifying Marketing Communications.
Thus, the marketing communications system can be presented as a set of QMS tools, which can be conditionally divided into two groups: basic and synthetic [Romat E.V.].
The main means of marketing communications may include:
Direct marketing (including personal selling);
Public relations (including publicity);
Sales promotion (or sales promotion).
Synthetic means of marketing communications are:
Corporate identification system (branding in the narrower sense of the term);
Sponsorship;
Participation in exhibitions and fairs;
Integrated marketing communications at points of sale;
Event Marketing;
Product placement (product placement).
With a high degree of probability, it can be assumed that in the near future, computer communication technologies (primarily associated with the use of the Internet), considered at this stage as specific forms of advertising, direct marketing and public relations, will also emerge as an independent synthetic means of marketing communications - integrated computer marketing communications. We can talk about a similar trend emerging in the field of mobile marketing.
One of the central places in the system of marketing communications is occupied by advertising (English advertising, American). The most important role of advertising in the structure of the QMS is explained by both historical traditions and the modern significance of advertising. The previous analysis showed that most of the known means of marketing communications originated within advertising (proto-advertising). The only exceptions are direct marketing, fairs, and communicator-generated rumors that developed in parallel with advertising.
Naturally, the role of advertising in the system of communications media changes over time. At the present stage of development, marketing communications specialists in some countries (for example, the USA) declare a shift in priorities in the promotion system to direct marketing. Similar conclusions are drawn based on an analysis of the volume and structure of communication budgets. Many other developed countries are also close to this, or at least show a steady trend in the redistribution of communication budgets in favor of direct marketing and other media management systems.
At the same time, the position of advertising as one of the main means of promotion will not raise any doubts for a long time. First of all, this is due to the initially dominant role in the promotion system and the advantages of advertising in the implementation of specific communication tasks (for example, informing recipients). In addition, advertising is in no hurry to give up its leading position, demonstrating the ongoing search and widespread introduction of new innovative means of advertising.
Advertising is one of the most well-studied means of marketing communications. Since the second half of the century before last, it has been the subject of study by many scientists and specialists. Among the numerous definitions of advertising as a means of marketing communications proposed by experts, the following can be distinguished: “Advertising is any paid form of non-personal presentation and promotion of ideas or services on behalf of a well-known sponsor” (definition of the American Marketing Association (AMA)).
Some experts consider advertising “...as a form of communication that tries to translate the qualities of goods and services, as well as ideas into the language of the needs and demands of the consumer” (American scientists I. Sandage, W. Freiburger, K. Rotzol).
“Advertising is a paid, unidirectional and non-personal appeal carried out through the media and other types of communication, campaigning in favor of a product, brand, company (some cause, candidate, government),” notes French scientist Henri Deyyan .
American experts D. Cravens, G. Hills and R. Woodruff believe that “...advertising is communication with the audience through non-personal paid channels; the audience clearly represents the source of the message as the organization that paid for the means of advertising distribution.”
“Advertising is paid, non-personal communication carried out by an identified sponsor and using media, including interactive media, in order to convince the target audience of something or influence it in a certain way.” This opinion is expressed by American professors W. Wells, J. Burnet, S. Moriarty.
As you can see, different definitions reflect different approaches to the complex and multifaceted concept of “advertising”. Based on this brief content analysis, we will highlight the main features and communication characteristics of advertising as one of the main means of QMS. The most important of them are the following.
1. Non-personal character. The communication signal reaches the potential buyer not personally from the seller of the advertised product, but through various types of advertising intermediaries (mass media, various advertising media).
3. Significant difficulties in determining the effect of advertising. This quality is a logical continuation of the previous one. Feedback in communication (and the seller, naturally, expects the buyer to make a purchase decision) is probabilistic and uncertain. The fact of purchase depends not only on advertising, but also on a host of factors that are not directly related to advertising, are subjective in nature and practically impossible to formalize. For example, an excellent advertising campaign may coincide in time with a defect in the release of a large batch of the product that is being advertised. As a result, advertising will only exacerbate the negative consequences of marriage. Advertising efforts will not lead to positive results if there are shortcomings in the sales area. For example, active advertising may be negated by the absence of the advertised product in the distribution network.
4. The public nature of advertising communications. Firstly, advertising is mass social communication, the use of which is advisable for a relatively large audience (unlike, for example, direct marketing, the addressee of which can be one person). Secondly, it assumes that the product advertised is legal and generally accepted. That is why there are practically no advertisements for drugs and other goods prohibited by law.
5. The advertisement clearly defines the advertiser, sponsor, entity at whose expense and on whose behalf the advertising is carried out. Initially, as a matter of course, it is assumed that the source of advertising communication is the one who pays for it.
6. As a rule, the purpose of communication is clearly visible in the content of the advertising message. Sometimes advertising messages contain unambiguous calls from the communicator to recipients (to buy a product, vote for a candidate, take part in a promotion, etc.). In some cases, advertising is aimed at creating a positive image of the product. However, for the recipient, achieving these goals is obvious.
7. Advertising does not claim to be impartial. It is generally accepted that the advertising message focuses on the advantages of the advertised product or company. They may be greatly exaggerated. And at the same time, the disadvantages of the subject of advertising may not be mentioned. Recipients have long taken this for granted. Skepticism and mistrust of advertising as such continues to grow. Rare exceptions to this rule make advertising stand out from the vast majority of other messages. Let's give an example.
One of the winners of the Cannes Lions festival in the early 2000s. - commercials for the refreshing drink Doctor Pepper. The characters in the series of videos find themselves in tragicomic situations caused by the purchase or consumption of a drink. The clips ended with the slogan “DoctorPepper. You can’t imagine anything worse!” Surrounded by sugary-sweet glorification of the advertised goods, one can confidently speak of at least a “detachment” from competitors. On the other hand, it would be risky to recommend this technique for widespread use, if only because the lack of a sense of humor in some recipients may act as a “barrier.”
8. Flashiness and ability to persuade. Repeated repetition of advertising arguments has a certain inspiring psychological effect on the consumer and pushes him to purchase.
The main functions of advertising correspond to the general goals of the marketing communications system, which are discussed above. Depending on the goals determined by the specific market situation, advertising can most effectively solve the following problems:
Information (creating awareness and knowledge about a new product, a specific event, a company, etc.);
Reminder (maintaining awareness, keeping information about a product in consumers’ memory between purchases, reminding where to buy a given product, and other tasks);
Persuasion (gradual, consistent formation of preference corresponding to the consumer’s perception of the image of the company and its products; persuading the buyer to make a purchase; encouraging the fact of purchase, etc.);
Formation of a positive emotional connotation of communications with the advertised product (for example, in a series of commercials for Nescafe coffee, “pragmatic” information is practically reduced to nothing. The emphasis is on the formation of warm human relationships in the process of consuming the advertised drink);
Pushing buyers to the act of purchasing (this is especially typical for “hard” advertising);
Retaining customers, maintaining loyalty to the advertised brand (for example, commercials for Head & Shoulder shampoo and Blend-a-med toothpaste describe the negative consequences of changing the advertised products to others);
Creation of the company’s “own face”, which would differ from the images of competitors. The slang expression “detuning from competitors” denoting this function has already become a generally accepted term;
The successful solution of these goals allows the effective use of advertising not only within the framework of the “communication mixture” and the implementation of the concept of integrated marketing communications. Advertising as an element of the QMS is actively used in marketing technologies for positioning (repositioning) of a product/communicating company, branding, and merchandising.
According to the figurative expression of the famous American advertiser Alfred J. Seaman, “advertising is both the spark plug and the lubricating oil in the economic mechanism that creates abundance for consumers. And as such, its task is to inform. But this task is not just to inform. The function of advertising is to sell. Sell goods. Sell ideas. Selling a lifestyle."
Many criteria are used to classify advertising. All systematizations allow you to consider, analyze and study advertising from different points of view. Most classifications, in addition to research interest and solving training problems, have very real practical significance (for example, in the development of advertising programs for advertisers, the development of regulations, etc.).
At the same time, this systematization reveals a fundamentally important place for systematizing advertising in accordance with the criterion of advertising goals and the type of advertiser. These criteria are difficult to separate from each other due to the close relationship and interdependence of the characteristics of advertisers and their goals. For example, an advertiser-businessman is naturally the initiator of commercial advertising, and a public organization will most likely be the customer of social advertising, just as a specific party is the customer of political advertising.
| No. | Classification criteria | Types of advertising |
| 1 | Focus on a specific audience segment | 1.1. Mass |
| 1.2. Selective (selective) | ||
| 1.3. Spot | ||
| 2 | Size of territory covered by advertising activity | 2.1. Local |
| 2.2. Regional | ||
| 2.3. Nationwide | ||
| 2.4. International | ||
| 2.5. Global advertising | ||
| 3 | Method of influence | 3.1. Visual |
| 3.2. Auditory (hearing) | ||
| 3.3. Visual-auditory | ||
| 3.4. Visual-olfactory | ||
| 4 | Nature of impact | 4.1. Soft |
| 4.2. Tough | ||
| 5 | The means used to convey advertising messages | 5.1. Advertising in the press |
| 5.2. Printing (printing) | ||
| 5.3. Radio advertising | ||
| 5.4. TV advertising | ||
| 5.5. Outdoor billboard advertising | ||
| 5.5. Internet advertising | ||
| 5.6. Mobile advertising | ||
| 5.7. Souvenir advertising, etc. |
Source:
Public relations
Public relations (PR, English - public relations, PR) is a fairly broad area of communication activity, a deep and complete study of which goes far beyond the scope of this book. PR has come a long way in its development, full of different approaches, views, interesting theories put forward by outstanding specialists. By analogy with the science of advertising - advertising science - the science of PR - PR - has emerged and is developing. In this section of the book, we will very briefly consider only those aspects of public relations that are directly in the general mainstream of marketing communications.
Despite the fact that we consider public relations as an element of the marketing communications system, it should be noted that the scope of PR is sometimes much wider than that of the QMS as a whole or its individual components. Moreover, it sometimes goes beyond marketing in general. The scope of marketing communications is limited, as a rule, to solving market and entrepreneurial problems. The main goals of the systems are radically different: for PR it is to achieve mutual understanding and agreement; For QMS, this is ultimately the sale of goods and solving other problems of the organization’s marketing policy. Although it would be wrong to deny unidirectionality or, even more so, to oppose these interrelated goals.
Obviously, PR is a term that surpasses all other categories of QMS in terms of plurality and ambiguity of interpretations. Experts have counted over 500 scientific definitions of public relations. This is largely explained (as in the case of the previously discussed ambiguity of definitions of advertising) by the different goals of PR at different stages of their formation, the variety of areas of application of this tool, and differences in the goals of subjects using public relations tools.
In our opinion, the literal translation of the term from English as “public relations”, or, even more straightforwardly, “public relations”, reflects only one of the areas of PR functioning. In addition, this approach narrows the range of goals of the public relations system. Therefore, despite all the dislike for foreign terms that really litter the Russian language, the phrase “public relations” cannot be successfully used to designate this category. The use of the borrowed term “public relations” is indirectly supported by the fact that it is used without translation not only in English-speaking countries, but also in other economically developed countries.
Let's look at some of the most typical definitions of PR.
One of the world's most famous and authoritative experts in the field of public relations, Sam Black, gave the classic definition of PR. It is “the art and science of achieving harmony through mutual understanding based on truth and full information.”
French PR expert G. Leroy believes that PR is “a set of coordinated actions to influence public opinion, aimed at changing people’s attitudes and behavior in one’s favor.”
An English scientist and specialist in the field of marketing communications, Paul Smith, briefly characterizes public relations as “... establishing and maintaining good relationships with various public groups.”
The American author of public relations textbooks for journalists, M. Mencher, gives the following definition: “PR is a management function that evaluates public attitudes, coordinates the policies and actions of an individual or organization with public interests, and implements a program of action to achieve public understanding and perception.”
Today, depending on the scope of public relations implementation and the type of communications subject, the following are distinguished:
Commercial PR;
Political PR,
Social PR;
State PR.
It is obvious that commercial public relations is the sphere of activity of business structures, state PR is handled by government agencies, and political PR is handled by political parties, associations and individual politicians. Below we will focus mainly on commercial public relations.
The term audience (public) in PR, according to American scientists W. Wells, S. Moriarty and J. Burnett, means “... all groups with which the organization interacts: employees, the media community, public groups, shareholders, etc. Sometimes the term stakeholders is used to refer to these groups, which more specifically defines groups that have an interest (not necessarily financial) in the success of a company or organization."
Numerous and varied means and media are used to achieve public relations goals. They can be systematized as follows.
1. Communication with the media (press, television, radio). The main techniques in this direction are:
The company organizes press conferences and briefings at which the problems of its activities are discussed.
A press kit (media kit) is a package of information materials provided to journalists at a specific event. The information in the press kit should be comprehensive and comprehensive. The press kit should be designed to be useful to the journalist from the very moment he receives it;
Production with the participation of the company of television and radio reports; publication of articles about the company itself, its employees or its field of activity. Articles and reports are of a non-commercial, non-advertising nature. Most often, the genre is popular science, essay, event, specific, etc. During the contact, the audience either receives the information necessary, from the point of view of the company, or learns something about the company that characterizes it well, forming its positive image;
Organizing interviews with the company's managers and other employees in the media;
Establishing friendly and, if possible, friendly relations with editors and other media employees (formation of the so-called journalist lobby). In the PR services of large organizations, persons responsible for press relations are appointed who coordinate this work. The main requirements for these employees are:
1) high personal communication skills;
2) good knowledge of the specifics of the activities of your organization;
3) commitment and punctuality;
4) external compliance with the established image of the represented organization;
5) the presence of at least superficial connections in the journalistic community;
6) having an idea of the actual work practices of the media of interest to the organization;
7) desire and readiness to cooperate with representatives of the media [see. 50, p. 81-91; 65, p. 27; 64, etc.].
Organization of press lunches (business breakfasts for the press);
Organization of press tours for media representatives.
2. Public relations by means of printing have acquired the following forms:
- publication of annual official reports on the company's activities. In many countries, the publication of data on the results of financial and economic activities for certain types of enterprises (for example, joint stock companies) is mandatory, which is enshrined in law. In domestic practice, this form has become widespread in the activities of banks and insurance companies. In addition to the mandatory publication of financial results in the media, many banks publish annual reports in the form of well-designed presentation prospectuses;
- publication of a branded propaganda brochure. Typically, a prestigious prospectus reflects the history of the company and its most significant achievements. In some cases, he introduces the reader to the organizational structure of the company and its leaders. The design and printing of the prospectus, as a rule, is of the highest level. This prevents the recipient from quickly disposing of it as “waste paper.” In this way, the prospectus promotes an atmosphere of openness and trust between the firm and its public. Mailing addressees are usually media editorial offices, government agencies, business partners, educational institutions, etc.;
- publication of a company magazine(organization of other media). This is one of the most expensive means of propaganda, which is associated with the need to ensure a high level of publication both in terms of the design of the magazine and the publications it contains. Therefore, the very fact of publishing a company magazine speaks of the high potential of the company and its great financial capabilities. Thus, almost all large European companies have in-house publications. In 2008, the costs of European companies to produce their own publications were close to €5 billion, and the total one-time circulation of corporate publications (about 500 million copies) exceeded the total circulation of traditional print media.
3. Intracorporate media are no longer limited to print media. The development of technology is pushing businesses to use more and more new forms of media. One of the latest innovations adopted by transnational companies is Internet television.
4. Participation of company representatives in congresses and conferences of professional or public organizations. The company itself can initiate the organization of a scientific symposium or seminar related to the problems of the field of activity in which the organization operates.
5. Public relations on the Internet. The capabilities of the Network allow you to use the following tools for PR purposes:
Development and placement on the Internet of your own website or web page of the communicator, where brief information about the organization, information about its leadership and structure can be placed, and the main communication channels for further information are provided. Sometimes websites opened by companies are dedicated to specific topics related to their activities. - sending out press releases via email;
Transfer of information materials through mailing lists (mail-list);
Participation in Internet conferences on issues of interest to the sender. For example, the Swedish automobile concern SAAB opened its teleconference to discuss issues of consumer characteristics of cars of this brand;
Publishing your own online newspapers (magazines), etc.
It should be noted that the public relations format is one of the most suitable for use on the Internet. There are unwritten but mandatory rules on the Internet, a kind of user etiquette that has received an original definition Netiquette (“a hybrid” of the English words “network” and “etiquette”). According to it, it is not customary to send commercial messages by e-mail to users who have not requested it. The distribution of advertising materials in newsgroups and conferences is frowned upon, especially if the topic of the advertising message is far from the topic of the conference or group. Violators Netiquette are threatened with significant retaliatory sanctions from the Network community. Learn more about the Internet as a tool PR can be read in.
6. Round tables are public discussions of a specific, usually socially significant problem. Experts invited as participants in the discussion express their point of view on solving this problem. Those present at the round table have the opportunity to ask questions to the experts. If the topic of discussion is truly relevant and of public interest, then the results of the discussion can become material for publication in the media. Representatives of the press, including the electronic press, may also be invited to the meeting. A positive characteristic of a round table as a PR tool is the ability to position representatives of a specific organization (a specific person) as a competent expert.
7. Other means of public relations (for example, open days, public speaking, photo exhibitions, etc.).
Depending on the type of the main target audience, all communication activities of a sponsoring company can have three main directions.
1. Formation of marketing communications of the sponsoring company with target client markets.
2. Establishing favorable broad public opinion (or working “for the general public”).
3. Communications aimed at the company’s own personnel. Naturally, this division is purely conditional without clearly defined clear boundaries. In fact, the formation of a positive image of the sponsor among the general public, one way or another, affects the target client market and has a beneficial effect on the motivation of its own employees.
The most promising and often subsidized areas of human activity in which sponsors invest are:
Sphere of culture and art;
Ministry of Science and Education of Ukraine
University of Economics and Management
Course work
Discipline: marketing
Marketing communication policy
Work completed
3rd year student
Teacher
Result "5"
Simferopol, 2008
Introduction
The word marketing comes, as we know, from the English Market (market) and implies any type of human activity aimed at studying the market, satisfying the needs and demands of consumers, and everything connected with it. The practice of marketing has a great influence on people, whether they are buyers, sellers or ordinary citizens. Marketing strives to achieve the maximum possible consumption of goods and services by satisfying customers by providing them with the widest possible choice. The economic meaning of marketing is to accelerate the return on production assets of an enterprise or organization, increase competitiveness in the market, and mobility of production. It is the competence of marketing that includes the timely creation of new products and their promotion in those markets where the maximum commercial effect can be achieved.
In the sales market, selling has become more difficult, buying has become easier. The buyer is able to choose the seller to whom he is willing to give his money. He has a choice. Sellers are interested in having the product purchased from them; after making a purchase, they come back next time or recommend it to others.
Manufacturers and their intermediaries use marketing communications to promote goods, which is a specific combination of advertising, personal selling, sales promotion and public relations.
Sales promotion is one-time incentive measures that encourage the purchase of certain goods and services.
Public relations - establishing relationships between the company and various contact audiences by creating a reputation beneficial to the company, a positive image, on the other hand, and eliminating or preventing unwanted rumors and gossip.
Personal selling is a type of promotion of goods and services that involves verbally presenting them to potential buyers for the purpose of selling.
In the social processes of modern communication society, communication policy plays an increasingly significant role. This is due to the fact that industrial society, although not yet completely replaced by communication society, however, the latter has already, as it were, affected it. People continue to live, enjoying the material well-being that arises as a result of industrial production, but the way we live, and industrial production itself, is increasingly determined by the communication processes that take place in industrial enterprises, in bureaucratic structures, in business associations or trade unions , in parties and social movements. Indeed, effective communications with consumers have become key factors in the success of any organization.
The most important factors contributing to the strengthening of the role of marketing communications is the fact that a variety of elements are used against the backdrop of constantly changing social, economic and competitive forces.
Section I. Communication Policy
1.1. Content and purpose of communication policy in the marketing mix
In recent years, along with the increasing role of marketing, the role of marketing communications has increased.
Enterprises of various types of activities, from small retailers to large commodity producers, as well as non-profit organizations (educational, medical, churches, museums, symphony orchestras, etc.) are constantly promoting their activities to consumers and clients, trying to achieve several goals:
1) inform prospective consumers about your product, services, and sales conditions;
2) convince the buyer to give preference to these particular products and brands, make purchases in certain stores, attend these particular entertainment events, etc.
3) force the buyer to act - consumer behavior is directed towards what the market is offering at the moment, rather than postponing the purchase for the future.
The above is called promotion or marketing communications management.
Marketers rarely use the term promotion management; they usually prefer to use the term marketing communications. Let's look at their main differences. The above terms are closely related to the concept of “marketing mix”.
The marketing mix is concerned with the following four elements of decision making:
1) product decisions; 2) pricing decisions; 3) decisions about distribution channels; 4) decisions about promotion.
Compared to the above, marketing communications is a broader term that includes communications through any or all elements of the marketing mix. The communication process itself includes nine elements and is presented by F. Kotler in the following model:
Sender - the party sending the request to the other party (client company).
Encoding is a set of characters transmitted by the sender.
Information dissemination means are communication channels through which an appeal is transmitted from the sender to the recipient.
Decoding is the process by which the recipient assigns meaning to the symbols transmitted by the sender.
Recipient - the party receiving the message transmitted by the other party.
Response is a set of responses from the recipient resulting from contact with the message.
Feedback is part of the response that the recipient brings to the attention of the sender.
Interference is unplanned interference or distortion of the environment, as a result of which the recipient receives a message different from what the sender sent. This model includes the main factors of effective communication and defines the main stages of work towards creating an effective communication system. 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.
Advertising involves the use of either mass media - newspapers, magazines, radio, television and others (for example, billboards), or direct contact with the buyer using mail.
Both types of advertising are paid for by a known sponsor, the advertiser, but are considered impersonal because the sponsoring firm is simultaneously addressing numerous recipients, perhaps millions, rather than talking to one individual or small group.
Publicity, like advertising, is not a personal appeal to a mass audience, but, unlike advertising, the company does not pay for it. Publicity usually occurs in the form of news reports, or editorial comments in the press about a company's products or services. This information or commentary receives free newspaper space or airtime because members of the media consider the information to be timely or useful to their reading and television audiences. Gradually, marketers came to the conclusion that it was advisable to use a wider arsenal of public relations tools (public relations) than publicity. Therefore, public relations began to be considered the third element of the communication complex, and publicity was included in its composition. Sales promotion includes all types of marketing activities aimed at stimulating buyer action, in other words, capable of stimulating the immediate sale of a product. Compared to sales promotion, advertising and publicity are intended to fulfill other purposes, in this case such as bringing information to the consumer about a new brand and influencing the consumer's attitude towards it.
Personal selling plays a significant role in the promotion of goods, which has recently found increasing use as an effective means of promotion and sales.
Personal selling is personal (face-to-face) communication in which the salesperson attempts to persuade potential buyers to purchase the company's products or services. With the development of the Internet, the share of direct sales through it will increase. However, some complex legal, technical and ethical issues still need to be resolved.
The combination of the promotional elements just described is called the promotion complex. Promotion management is the coordination of the various elements of the promotional mix, determining the goals to be achieved through the application of these elements, drawing up cost estimates sufficient to achieve these goals, developing special programs (for example, advertising campaigns), evaluating performance and taking corrective action in case of , if the results are not consistent with the goals. Thus, both marketing communications and promotion management contain the idea of communication with consumers. However, while promotion management is limited only to the communications identified in the list of promotional elements of the marketing mix, marketing communications is a general concept that includes all communications using all elements of the marketing mix. The trend towards integrating marketing communications, i.e. The combination of advertising, public relations, sales promotion, direct selling, point-of-sale communications and event marketing with other elements of the marketing mix is one of the most significant marketing developments of the 1990s.
The reason why so much attention has been paid to marketing communications is that many organizations have traditionally resisted the integration of various communication elements. The reluctance to change was largely due to managers' fear that changes would lead to budget cuts and a decrease in their authority and power. Corporate advertising agencies were reluctant to change for fear of expanding their functions beyond advertising. However, advertising agencies have expanded their functions by merging with companies or creating their own branches specializing in sales promotion, direct marketing, etc.
In the past, companies often viewed the elements of communication as separate activities, while marketing philosophy now believes that integration is absolutely essential to success, as well summed up in the following quote from Spencer Plavukas: "The successful marketer in today's environment he is the one who coordinates the communications complex so tightly that from advertisement to advertisement, from article to article, from one program to another, you immediately recognize that the brand is speaking with the same voice."
1.2. Stages of developing effective communications
The main stages of work on creating an effective communications system include the following factors for effective communications:
· identifying the target audience;
· determining the degree of purchasing readiness of the audience;
· determining the desired response from the target audience;
· drafting an appeal to the target audience;
· formation of a complex of marketing communications for the company;
· development of a budget for a complex of marketing communications;
· implementation of a complex of marketing communications;
· collection of information received through feedback channels;
· adjustment of the marketing communications mix.
If the company, within a certain time, managed to transfer its target audience to the desired state of purchasing readiness, then the communicator must again begin activities to create a set of marketing communications from point 2 of this model; and in the case of identifying one more or a number of target audiences - from paragraphs 1-3. The basis for the formation of an effective set of marketing communications is segmentation, which allows you to obtain the necessary information about the socio-economic and psychological characteristics of the company's target audiences.
The structure of the marketing communications mix is also influenced by:
· type of product (consumer goods or industrial goods);
· stage of the product life cycle;
· degree of purchasing readiness of a potential client;
· promotion strategy (push or attract strategy);
· features of the complex of marketing communications of competitors;
· financial capabilities of the company.
Marketing communications are easier to understand if we consider the nature of its two constituent elements - communications and marketing.
Communication is a process as a result of which an unambiguous perception of a communication message should be achieved by the subjects sending and receiving it.
Marketing is a set of activities through which business organizations or any other exchange values between themselves and their consumers.
Of course, the definition of marketing itself is more general than marketing communications, but most marketing is about communications. Taken together, marketing and communications represent the combined elements of the marketing mix, i.e. - Marketing communications.
Communication policy in marketing is an important element that allows you to determine the target audience, develop a strategy for promoting goods in markets, provide information to consumers in the form of advertising about a product, maintain relationships with regular customers and find new ones using Public Relations. Which ultimately, with the correct use of communication policy, leads to maximum profit.
Section II. Components of communications policy in marketing
2.1. Advertising
Based on the level of coverage of the territory (geographically), advertising is divided into:
· foreign,
· nationwide,
· regional
· local.
Advertising can be classified according to the means of transmitting information. The most important of them are newspapers, magazines, radio, television, mail and street media such as signs and billboards. So there are newspaper advertisements, magazine advertisements, etc. Advertising can be aimed both at promoting individual products (product advertising) and at promoting organizations and their ideas (healthy lifestyles, protection of wildlife, etc.). Such advertising is called image, prestigious, sometimes corporate.
If advertising is aimed at making a profit from the sale of certain goods, then it is called commercial. If it is aimed at achieving non-profit public goals, then it is called non-profit. For example, advertisements may be placed to raise funds for a charitable cause; in order to influence consumer behavior.
With a certain degree of convention, based on the means used to influence the target audience, the following types of advertising can be distinguished: informative, incentive, the latter can become comparative advertising, reminder advertising.
Informative advertising is used to inform consumers about products and their properties in order to create demand. It is purely business in nature and appeals more to the mind than to the feelings of a person. It provides the details of the organization advertising its product. More often, this type of advertising is used when advertising products for industrial and technical purposes.
Incentive advertising is used to create selective demand among a selected segment of consumers for a particular product by inducing consumers that the advertised product is the best within their means. Incentive advertising carries an emotional charge and affects the human subconscious. It usually presents the advertised product in an advantageous light, clearly indicates its brand and gives an idea of the “heavenly pleasure” that the consumer will experience after purchasing it. No addresses or telephone numbers are provided. Sometimes, when making a certain choice in a store, the buyer does not even realize that his choice was predetermined by an advertisement for this product, which he saw on television some time ago. Comparative advertising makes a direct or indirect comparison of a particular brand of product with other brands. It’s easier to highlight the benefits of your new product compared to your previously released products. It is much more difficult to compare with competitors' products. In this case, advertising usually emphasizes the advantages of this type of product, without specifically indicating competing brands. (If a specific brand is indicated, its manufacturer may consider the comparison to be biased and sue the “offender”).
Informative advertising is most likely used during the adoption and growth stages. Incentive - at the stage of market saturation, when competition intensifies. Reminiscent advertising is also used in the maturity stage, while comparative advertising is used in the growth and maturity stages. Obviously, at the recession stage, the effectiveness of any advertising drops sharply.
One common misconception is that advertising creates a sale. Only in rare cases can one speak about this with relative confidence.
Advertising finds potential buyers and stimulates demand. It may even encourage people to ask for that particular product. Sellers can also find potential buyers and stimulate demand; they also sell goods. But in reality, only buyers create sales.
The choice “to buy or not to buy” is made by the buyer, not by manufacturers or sellers. The main thing for advertising is to lead a potential buyer to the place where the product is sold. If he came there, then so that he does not leave the store without purchasing, advertising must be supplemented by other methods of promoting the product, but first of all, the product itself must satisfy the consumer. Therefore, it is more correct to evaluate the effectiveness of advertising not by sales volume, but by the number of contacts (visits, phone calls, etc.) of potential buyers.
The purpose of advertising is to inform, persuade and remind. This is the impact of advertising on sales. Advertising is only part of the whole, and when creating advertising budgets, this must be kept in mind.
At the same time, direct action advertising is distinguished, designed for direct response, that is, for making a purchase or at least for asking for additional information. Messages of this type include registration cards, direct advertising can be found in magazines and newspapers, and, more recently, received by fax or via the Internet. Such advertising is designed to establish maximum contacts with representatives of the target market.
Marketers must consider the structural and competitive conditions of the market environment. What is the sales level in the industry? What is the market share of the most important competitors? What competitive actions might make it difficult to achieve your sales growth goals?
Advantages and disadvantages of the main means of advertising distribution.
Newspapers – flexibility, timeliness, large local market coverage, wide recognition and acceptance, high reliability. Short duration of existence, low quality of reproduction, small audience of “secondary” readers.
Television - a combination of image, sound and movement, sensory impact, high degree of attention, breadth of coverage. High absolute cost, overload with advertising, fleeting advertising contact, less selectivity of the audience.
Radio – audience selectivity, widespread use, high geographic and demographic selectivity, affordable prices. Presentation only by sound means, the degree of attracting attention is lower than that of television, the fleeting nature of advertising contact.
Magazines – high geographic and demographic selectivity, reliability, prestige, high quality of reproduction, longevity, a significant number of “secondary” readers.
A long time gap between the purchase of space and the appearance of advertising, the presence of useless circulation, and the lack of guarantee of placement of an ad in the preferred location.
Outdoor advertising – flexibility, high frequency of repeat contacts, low cost, weak competition. Lack of audience selectivity, creative limitations. Several means of advertising distribution designed for the same or different target audiences can be simultaneously selected. To do this, in order to best reach the target audience, it is necessary to have information about the use of various sources of information by individual target audiences. The cost of advertising in different means of distribution is taken into account.
Advertising is included in the group of one of the elements of the complex - marketing communications (or product promotion - promotion). Therefore, advertising should not be considered as a system in itself, but as part of a communication subsystem in the overall marketing system. The various components of this system, objects and activities are interconnected, which brings them together into a single whole and allows them to work synchronously.
Advertising cannot exist on its own. To effectively influence the buyer, advertising must use the experience of other branches of knowledge: marketing, psychology, journalism, linguistics, literature, Public Relations, etc. PR is especially worth emphasizing in this regard. Because advertising and PR are components of a unified communication policy. And if advertising is its tactics, then PR is its strategy.
2.2. Sales promotion
Promote sales - make your potential buyers aware of your business and the products or services you offer. By offering certain types of goods or services, you are selling your business.
It is necessary that buyers are well informed about you and your business.
In other words, you are interested in creating a good business reputation for your enterprise, in establishing good relations with the public (the so-called “public relations” - public relations).
If you have a “good business reputation”, you can be trusted. This means that your clients will come to you again and again. They will tell their friends and acquaintances about you, and the number of your clients will constantly increase.
Sales promotion is the use of a variety of means of stimulating influence, designed to accelerate and/or strengthen the market response. These include:
· consumer incentives (sample distribution, coupons, cash-back offers, discounted packaging, bonuses, competitions, credit cards, demonstrations)
· stimulation of the trade sector (credits for purchases, provision of goods for free, credits to dealers for including goods in the range, joint advertising, issuance of pusher awards, holding trade competitions for dealers)
· stimulation of the company’s own sales staff (awards, competitions, sales conferences)
Sales promotion means can also be divided into those that contribute and those that do not contribute to the creation of “privileges among consumers” for the advertiser.
Means that promote consumer privilege typically follow up a sales pitch with an offer of a preferential deal, as is the case with free samples, coupons with a sales pitch printed on them, and premiums tied directly to the product.
Sales promotions that do not create consumer benefits include packages sold at a discounted price, consumer bonuses not directly related to the product, contests and sweepstakes, cash-back offers to consumers, and discounts to retailers.
The use of tools that promote the formation of privilege in the eyes of consumers helps to strengthen awareness of the branded product and understanding of its essence.
Any sales promotion operation must correspond to the current stage in the product life cycle.
1. Release phase
At the time of release, three main factors prevent the sale of a product:
– Sales personnel cannot immediately become “adherent” of a new product, so there is a need to interest trading organizations with the help of incentives and provide special measures to convince sales personnel of the value of the new product.
– Trade representatives are reluctant to take risks associated with the sale of a new product. Numerous failures force the intermediary to wait until the last minute before “approving” the new product.
– The retail chain welcomes incentive support during the product “approval” period. The consumer also shows restraint when purchasing a new product.
Sales promotions that encourage customers to try a new product make it easier for them to become familiar with it. Sales growth is facilitated by the use of special trial prices, offers of samples, payment in installments, provision of additional quantities of goods, etc.
2. Development phase.
During periods of sales growth, the use of incentives is of strategic importance. This is a special stage in the product life cycle. It becomes famous and new buyers are found regularly. At this stage, preference is given to advertising rather than sales promotion.
However, in order to quickly and effectively respond to the actions of competitors, increase the number of outlets for selling goods, and selectively influence the object, sales promotion is used
3. Maturity phase.
When a product is well known and has regular customers, the manufacturer uses promotion techniques on an ongoing basis. The effectiveness of advertising at this stage decreases.
To revive interest in a product, various occasions are used (holidays, introduction of new packaging, etc.).
4. Towards the end of the maturity phase, saturation occurs and then decline.
At this stage, all incentives cease so as not to impede the withdrawal of the product from circulation.
Solving sales promotion problems is achieved using a variety of different means. At the same time, the developer of the marketing plan takes into account both the type of market, and specific tasks in the field of sales promotion, and the existing market environment, and the profitability of each of the means used.
The choice of incentives depends on the goals set. All funds can be combined into three large groups:
· price incentives (sales at reduced prices, preferential coupons giving the right to a discount)
· offers in kind (bonuses, product samples)
· active offer (customer competitions, games, lotteries).
Let's take a closer look at each of the incentives:
Product samples, coupons, discounted packaging, bonuses and credit cards. These are the main means on which consumer stimulation activities are based.
Sample distribution is the offering of a product to consumers for free or for trial. Samples can be distributed on a door-to-door basis, sent by mail, handed out in a store, attached to some other product, or used in an advertising offer.
Distributing samples is the most effective way to introduce a new product.
To use the latter method of sample distribution, it is necessary to provide in the budget additional cost items for:
Payment of tax on the provision of space for a sample in a printed publication
Costs for gluing samples, postage.
Coupons are certificates that give the consumer the right to specified savings when purchasing a specific product. Coupons can be sent by mail, attached to other products, or included in advertisements. They can be effective in stimulating sales of an already mature brand.
But, as a rule, both manufacturers and the distribution network resort to this type of incentive in the following cases:
At the time of launching a new product on the market, when it is necessary to encourage the consumer to try it
At the time of re-release, the sales of which are experiencing stagnation and it is necessary to expand the circle of its buyers.
Reduced price packages (also called low price deals) are an offer to the consumer of a certain saving on the regular price of the product. Information about them is placed on the label or on the packaging of the product.
A premium is a product offered at a fairly low price or free of charge as an incentive for the purchase of another product. The "on-packaging" bonus accompanies the product, either inside or outside the packaging. The packaging itself can also serve as a bonus if it is a reusable container.
A free postage premium is an item sent to consumers who provide proof of purchase of the item, such as a box lid.
A self-liquidating premium is an item sold at less than the normal retail price to consumers who request it. Today, the manufacturer offers consumers a wide variety of premiums with the company name printed on them.
1. Credit coupons are a specific type of bonus that consumers receive when making a purchase and which they can exchange for goods at special exchange offices.
2. Expositions and demonstrations of goods at points of sale - expositions and demonstrations of new products are arranged.
3. Professional meetings and specialized exhibitions - industry associations annually hold congresses of their members, usually accompanying these events with the organization of specialized exhibitions. At such an exhibition, products of companies that are suppliers to the industry are presented and demonstrated in action.4. Competitions, lotteries, games - provide an opportunity for lucky or particularly zealous consumers, dealers or traveling salesmen to win something - a cash prize, a vacation package or a product.
4. Stimulating the trade sector - to ensure cooperation from wholesalers and retailers, manufacturers use a number of specific techniques. The manufacturer may offer a purchase credit, that is, a discount on the price of each case of product purchased during a certain period of time.
It is clear that sales promotion plays an important role within the promotion complex as a whole. Its use requires a clear statement of objectives, selection of appropriate means, development of action programs, preliminary testing of it, implementation and evaluation of the results achieved.
2.3. Public Relations (Public Relations, PR)
Now there are quite a lot of definitions of the essence of PR science. One of the leading researchers, American Sam Black, defines PR as “the art and science of achieving harmony through mutual understanding based on truth and full information.” A very strict and American pragmatic definition of PR is given in the book “Communication Management”: “PR is the activity of translating the pragmatic goals of an organization into a policy acceptable to society.” In more detailed definitions, public relations is the science of communications, which aims to create an atmosphere of trust between an individual and a group, a group and society as a whole, and has an informational influence on public opinion.
Public relations is a management tool, its main strategy is to create trust, its audience has no defined boundaries and addresses. Of course, calls for confidential communication on the basis of objective truthful information in their reality can be comparable with the ideas of universal equality and brotherhood, but increased control of society, the desire for stabilization and the desire to correspond in their image to social standards still make these tasks not so hopeless.
The main tasks of PR lie in the area of improving external and internal communications. External communications, which occupy up to 80% of the time, lie in the field of communications with the media - the media. This includes constantly monitoring all publications in various communication channels and responding to them in a timely manner in the event of unwanted information, preparing one’s own materials for publication, participating in briefings and press conferences, speaking on behalf of the administration with assessments and comments on various extreme situations. Formally, at the organizational level, external communications are provided by the press service (or press secretary), who must have fairly good informal connections, feel like they belong among professionals and, naturally, be quite competent.
Internal communications are aimed at creating an atmosphere of mutual understanding and cooperation within the organization. One of the founders of the Japanese company Sony writes in this regard that the most important task of a Japanese manager is to create an attitude towards the corporation as a family. First of all, the problems of completeness and effectiveness of formal communications, their sufficiency to provide all employees with objective information, are solved. Much attention is also paid to the problems of informal communication, the spread of rumors and speculation, the study of opinions and assessments, and the identification of persons performing certain communicative roles in the organization - “watchmen”, “opinion leaders”, “liaisons”.
A very important and topical range of PR issues is centered around ensuring the image of the organization, personally its managers and employees, as well as enhancing the image, stabilizing it and taking urgent measures in case of decline.
The concept of “image” is used by modern psychologists and PR managers as an artificially constructed image, and the features of the image can be at different hierarchical levels and manifest themselves differently in different situations, especially non-standard ones. Sometimes the image is considered only from the standpoint of perception by other people, and in this case it is possible to distinguish different aspects of the image depending on the characteristics of the recipients. Obtaining and interpreting image characteristics even led to the emergence of a new profession of “image maker” - a specialist in creating the desired image.
External characteristics and, accordingly, the first impression of a candidate are very important and often even determine all subsequent ones, especially in the context of short-term business contacts. Some image makers even believe that 55% of the impression of a person depends on how he looks, and only 7% on how he speaks, and our memory for words dies before our memory for visual impressions.
However, this priority of the first impression largely depends on the level of development of the audience itself and the degree of its discernment. We should not forget about temporary changes in the image and its constant dependence on circumstances. The image may be quite stable, but it may also decline, and then all the efforts of image makers will be aimed at trying to rehabilitate it. An image can also be developed for an organization, product, or service. In the same way, there is a search for external perceptual properties that meet social expectations; representative standards for equipment, furniture, and office equipment are being developed.
Issues of sponsorship and patronage occupy a large place in the practice of PR services, since the social significance of such actions largely contributes to the creation of a positive public opinion. The focus, systematicity, scale, and social significance of actions form the image of the organization, include it in a broader social context, and create an atmosphere of openness and social acceptability. Naturally, all actions are reflected in the press, sometimes even repeatedly, and this enhances the communication effect.
In modern literature, public relations is correlated with such communication disciplines as advertising, agitation and propaganda, journalism and publicity, politics and lobbying. Since all disciplines are based on communication, its structure and components, it would be inappropriate to separate them very far from each other. The main stages of communication, its links from source to recipient, pre-communicative and post-communicative effects, intercommunicative influences, translation of information into messages are included in the discussion virtually everywhere, but with different purposes and methods of analysis. The field of public relations is distinguished as a sphere of non-commercial external and internal relations aimed at creating favorable public opinion. As stated earlier, the main strategy of public relations is a strategy of trust.
Advertising communications, compared to PR campaigns, are a marketing tool. The effectiveness of advertising communications is based on the idea of accelerating the movement of goods on the market. The main advertising strategy is the strategy of finding, satisfying and shaping consumer desires in the right direction. All types of advertising, with the exception of social advertising, pursue purely commercial goals, and favorable public opinion for advertising communications may remain a desirable, but not mandatory condition (as, for example, in the case of alcohol advertising campaigns).
Of course, in some issues the ideas of PR and advertising turn out to be so close to each other that it is simply impossible to clearly separate them. For example, prestigious advertising helps create a positive image of a company, product, and its employees personally. But at the same time, PR implicitly prepares consumers for a positive assessment of the product and its rapid acquisition. The prestigious function of advertising becomes the leading function - the product function. On the other hand, the free principle leading to PR campaigns is not always adhered to, and often presentations and techniques that are typical for PR require expenses no less than advertising. However, in their main areas, PR and advertising differ from each other in goals, strategies and methods of presentation, primarily in the media. PR is a system of measures to influence a very wide audience, in theory - the entire society as a whole. Advertising always works with narrow segments of the audience and has a clear targeting.
Agitation and propaganda as a means of influencing the audience are among the political ones. In totalitarian states, they are the levers of control of society, ensuring uncontested dominance on the economic and political fronts. In developed democratic states they acquire a plural character, corresponding to the political and economic groupings behind them. Agitation and propaganda, unlike PR events, are strictly targeted. If PR strategies lead to the establishment of trust with a voluntary orientation towards the proposed values, then agitation and propaganda act as a system of coercive measures that allow the manipulation of people and entire social groups. With the merging of economic and administrative structures or, to put it mildly, their dependence on each other, a very little studied, but nevertheless very important socio-political phenomenon of lobbying arises, which is a mechanism for influencing power structures in order to change the socio-economic panorama in favor of those or other enterprises, for example, changes in the tax system.
Experts distinguish two stages in lobbying. The first, which is quite normal for a democratic open society, comes down to informing authorities and clients about draft laws, regulations and regulatory documents. This is natural communication monitoring, and it fits best into the practice of PR events. It is also called soft lobbying. At the second stage, there is a danger of using the same communication structures to create a more privileged position for certain enterprises. Abuse of privileged relationships through good relationships creates corrupt capital, which is a type of mafia behavior. At the present stage, lobbying has crossed national boundaries and has become a means of achievement on an international scale. The closest connection between PR and journalism turns out to be, since external communications for the most part fall on it. There is so much internally and externally identical between journalism and public relations that they have come to be called twin brothers. A new term has appeared that is directly related to PR - publicity (English: "publicity", "glasnost"), meaning the receipt of favorable presentations on radio, television, and in the press, which are not paid for by sponsors. Publicity is any information or action through which an event or a person himself becomes known to the general public after being reported in the media. It should be noted that the media convey not only objective, but also subjective information, since its content is already a subjective process of choice, comprehension, and emotional interpretation. The same content can be conveyed in different media ironically, with a touch of sympathy, with the pathos of a pioneer, in a friendly manner. Compare, for example, the same transport information about temporary traffic changes: an official notice or the heading "Not your way". In addition, the same completely identical message can cause different communication effects when transmitted through radio, newspapers, and television.
Public relations is an equally important component of communication policy. PR is the non-personal stimulation of demand for a product or service by placing commercially important news in periodicals or obtaining favorable reviews on radio, television or stage, which are not paid for by a specific sponsor. In other words, the formation of public opinion about the company and product.
2.4. Personal selling (direct marketing)
Nowadays, the exchange of information with carefully selected target consumers, carried out in order to obtain an immediate response, is of great importance. In contrast to the activities of sales representatives who communicate with consumers in the process of personal contact, this is the most “direct” sales system. Personal selling is part of the promotion of goods and services, the presentation of goods to one or more potential clients, carried out in the process of direct communication and with the goal of selling and establishing long-term relationships with these clients.
In fact, personal selling refers to any personal contact between representatives of trading companies that contributes to one degree or another to increasing the sales of goods. Representatives of firms include: sales agents, traveling salesmen, brokers, insurance agents. A sales agent is a person acting on behalf of a company and performing one (or more) of the following functions: identifying potential customers; establishing communications and sales; service organization; collection of information and distribution of resources.
At certain stages of the buying process, especially the preference, conviction, and motivation stages, personal selling becomes the most effective means. Personal selling techniques have several unique features compared to advertising.
It involves personal contact between two or more people, during which the participants adapt to each other's needs and character.
Personal selling also contributes to the emergence of a wide variety of relationships: from formal - seller - buyer - to friendly ones. For a professional seller, the interests of the buyer are a matter of personal involvement, from which long-term professional contacts grow.
Personal selling forces the buyer to somehow respond to the request, at least with a polite refusal.
Personal selling is the most expensive means of stimulation. Therefore, it is necessary to carefully determine in which areas this type of promotion will give the greatest commercial effect. This is especially true for expensive and complex products that require more detailed information to consumers regarding technical parameters, features of operation and maintenance.
Personal selling uses marketing communications, such as trade presentations, fairs and sales exhibitions, and special promotional events. Product sales promotion includes point-of-sale advertising, bonuses, discounts, coupons, special advertising and demonstrations.
Stages of the personal selling process.
Search and evaluation of a buyer - identifying from the general mass of buyers potential clients who are promising from the point of view of a sales agent. Companies give some recommendations for selecting potential buyers; sales agents must learn to find them on their own. The necessary information can be obtained from: suppliers, dealers, colleagues with whom there is no competition, various institutions, newspapers. You need to select based on their financial capabilities, business size, special needs and requests, location and possible growth prospects.
Preparation for a contract includes collecting information about the buyer and as much as possible about the organization (what he needs, who is involved in the procurement process, as well as personal qualities and style of concluding a deal). The salesperson must determine the purpose of the contact, decide on the best form of contact, and consider the overall trading strategy for the transaction.
Contact - includes all the subtleties of etiquette and knowledge of psychology. You need to know how to meet and greet the buyer and lay the foundation for future good relationships. A salesperson's appearance, opening words, and follow-up comments have a huge impact on building relationships early in the sales process. After establishing contact, find out the client’s needs in order to interest the buyer and attract his attention, and immediately proceed to demonstrating samples of the products offered.
Presentation and Demonstration – During the presentation, the salesperson tells the buyer the “story” of the product being offered and demonstrates exactly how the product will make or save him money. Describe the features of the products offered, but always focus on the customer’s benefit.
Sales presentations can be enhanced by displaying promotional materials: brochures, slides, videos and product samples. If customers see or hold advertised products in their hands, they better remember its features and benefits. Telling or showing how the product will earn or save money always focuses attention on the customer's benefit.
Overcoming disagreements (objections).
Almost always, during a presentation or concluding a contract, objections arise from the consumer. To overcome disagreements, the salesperson must take a positive approach, look for hidden disagreements, use them as an opportunity to obtain additional information and as additional reasons for making a purchase.
Closing the deal - after all disagreements have been resolved, the sales agent can begin concluding the deal. Immediately try to sign a contract or move on to discussing the details of the agreement, offer your assistance in placing an order, draw the buyer’s attention to what he may lose if the contract (agreement) is not concluded immediately. Sales agents need to know how to recognize signs that a buyer is ready to close a deal. This is evidenced by various actions on his part, comments or questions.
Transaction support is necessary when a sales agent is trying to fully satisfy a long-term cooperation with him. The sales agent must continue to be in contact with the consumer: control the delivery of the goods, conduct training with staff, and resolve any questions that arise regarding the goods. For the buyer, this will serve as confirmation of the seller's genuine interest in him.
Most companies use agents, and many place a key role in the marketing mix for personal selling. The high cost of personal selling encourages every effort to increase the efficiency of sales management. The market-oriented sales team works to satisfy customers and increase company profits. To achieve these goals, salespeople require, in addition to sales skills, some marketing analysis and planning skills.
Chapter III. Application of marketing communication policy using the example of "Absolut" vodka from Vin & Sprit
The history of Swedish vodka dates back to the 15th century, when the Scandinavians first began producing a product called "branvin", which translates as "fire wine". Decades passed before people discovered that vodka could also be useful from an entertainment point of view. Soon after this discovery, in the 17th century, distilled alcohol, which was called vodka.
The factory in Åhus in southern Sweden is the only producer of perfectly pure Absolut vodka in the world. Here, alcohol is made from wheat from the southern regions of Sweden, and artesian water is used. All other components for making vodka come from experience and high modern technology. In terms of experience, the Swedes have been producing white vodka for at least 500 years. Once upon a time, pharmacists and monks obtained unrefined rough alcohol and used it in medicinal infusions, as a spice, an anesthetic, and in general, as they believed, a wonderful potion for all ailments.
Absolut vodka owes its phenomenal success to only one fact - the existence of such a person as Lara Olsson Smith.
A successful businessman at ten and a private business owner at fourteen, Lare began controlling a third of Sweden's vodka production before he ever picked up a razor. By the middle of the 19th century. The name “King of Vodka” was firmly attached to him. In 1879, a new variety of vodka called “Absolut Rent Branvin” (Absolutely Pure Vodka) was presented. This variety differed from all others in its revolutionary purification method: the so-called rectification method, which is still used today. Smith was an entrepreneur in every shade of the word and did not want to accept Stockholm's monopoly on the production of distilled spirits. By releasing a new product to the market, Smith began a trade war against the capital. He abandoned the idea of asking for permission to sell vodka in Stockholm. Instead, the businessman opened a shop near his factory on the island of Reimersholme, outside the city limits. To ferry shoppers to the island, he launched a free ferry - an amazing marketing ploy for the time! The shop was a huge success. The trade war intensified, and shots were even heard at times. Smith responded by expanding its business to the southern part of the country, a region known for millennia for its vodka. At the end of the 1870s. more than half of Sweden's alcohol production was produced in the Skane region, the southern part of the country. Once again, Lars Olsson Smith went all in, taking control of several factories in the region, attacking existing distribution channels selling inferior products. He even managed to use trade unions to boycott retail outlets selling low-quality vodka. Around the end of the century, Smith began to export its drinks. This brought him tremendous success, making him one of the richest men in the country, and a fortune that he lost, then gained again, only to lose again. Smith died in 1913 penniless, leaving behind only debts, angry letters from creditors and unfinished court cases.
But Smith's technical know-how did not die with him. In the 1970s a successful heir was found in Lars Lindmark, president of V&S Vin & Sprit AB (Swedish Wine and Vodka Corporation). Lindmark came up with the idea to modernize the old, respected enterprise.
Shortly before the 100th anniversary of Absolut Rent Branvin Lindmark decided to export a new vodka. Having no professional skills or experience in advertising, packaging design or strategic positioning, he put together a marketing team with the goal of choosing a completely new position for Absolut vodka.
His goal might seem crazy - to export vodka not just anywhere, but to the United States. A country with the most saturated and competitive consumer market in the world. However, it is also the most profitable. .
The first batch of Absolut Vodka was released on April 17, 1979, and two months later Absolut went on sale in Boston.
In the first year of presence on the American market, only 10 thousand nine-liter cases of Absolut were sold. After this, Vin & Sprit decided to change their communication policy. The initial concepts developed by marketers tried to emphasize the Swedish roots of the new brand. According to one of them, they wanted to call the vodka “Vodka of Swedish Blondes” with an image of Vikings engaged in robbery on the label, and according to another - “Vodka of the Royal Court” with an image of a decanter covered with frost. It was even suggested to wrap the bottle in paper. However, none of the ideas gave a proper idea of the quality and origin of vodka. A niche had formed in the market, which was intended to be filled by premium vodka. According to legend, advertiser Gunnar Broman saw an antique medical bottle in the window of a small shop in Stockholm’s “Old Town” and was shocked by the purity of style of this unique cultural sign of Sweden.
Several Scandinavian designers were tasked with refining the bottle. According to the plan, there should not have been a label on the container that would hide the crystal clear components. After much discussion and several prototypes, the team introduced colored letters to decorate the surface of the bottle. Blue was chosen as the most visible and attractive color. This color is still in the Absolut logo. So now the producers of Swedish vodka V&S Sprit AB had a product and packaging. All that's left is to come up with a name. The original product was called "Absolute Rent Branvin" (Absolutely Pure Vodka), but this name could not be registered in the United States, since "absolute" is a generic adjective that cannot legally be trademarked. Therefore, to avoid problems, the last letter “e” disappeared from the word “absolute”. The author of the advertising concept is Geoff Hayes, art director of the advertising agency TBWA (New York), with which an agreement was concluded to promote “Absolute” in America. One evening Geoff Hayes stayed at home. He drew sketches and watched TV, trying to find pure and simple symbols. However, attempts one after another remained unsuccessful, although they were tinged with subtle humor. The entire floor of his room was covered with a thick layer of ideas laid out on paper. Out of hopeless despair, Hayes looked up to the heavens... and then it dawned on him. So the halo was chosen as a symbol. The next day he showed the sketch to Graham. Together they changed the slogan from "Absolute Purity" to "Absolute Perfection." Another option depicted a bottle with angel wings (Absolute Paradise). After 15 minutes, they had a dozen options on the table with a simple slogan compiled according to the formula: “Absolute-something-point.” . Each sketch contained the name "Absolute", a bottle, or at least its outline. TBWA has captured the soul of the product. It was this “soul” that made it possible to create a huge number of copies based on one concept. A special role was played by the photographer Bronstein, who used a pictorial approach when photographing - local illumination of a dark background. Which gave the transparent bottle volume. In general, the bottle plays a huge role in each of the advertising images. It is both the physical and semantic center of the advertising message. Only a few Absolute creatives appeared without this strong symbol. This is the uniqueness of Absolut advertising. When the reader cannot comprehend at a high level the beauty of an advertising move, he is nevertheless always able to identify the main element of this advertising. Actually, a bottle. The first Absolut Perfection campaign appeared in 1980. The success exceeded all expectations. The American public fell in love with the original and fresh advertising of Absolut so much that sales of this drink began to grow at lightning speed. The phrase "Absolut Art" was first coined in 1985, when Andy Warhol, the godfather of pop art, suggested that the company "do something with the bottle." A portrait was painted. The famous bottle was used as a model. Soon she appeared on the poster, and success, which attracted the attention of the whole world, was not long in coming. Absolut's introduction into the art world has begun. Authors from all over the world were involved in advertising "Absolut", and the motto of this global art gallery, and at the same time of the vodka itself, became: "Absolut" - the art of vodka and the vodka of art."
Alexander Kosolapov is a native Muscovite, a graduate of the sculpture department of the Moscow Higher Art and Industrial School. Stroganov. In 1975, he moved to New York, where he sought inspiration in two outwardly similar, but unrelated stereotypes: American and Soviet mass culture. In the work for Swedish vodka, the red proletarian, against the backdrop of the globe, clutches “Absolut” in his hands. The slogan is: “The path is open to man!” For Rostislav Lebedev, for whom, in his own words, social art “has become a fun game, a carnival of the absurd,” the same “star” rays radiate from the bottle into an asterisk. They were followed by other artists: Agtap, Robert Indiana, George Rodrigue, popular personalities. In 1987, Kenny Scharf (Keppu Scharf), a lover of comics and primitive cartoons, acted as the creator of another masterpiece. Two of his “Absolutov” paintings are populated by good-natured genies flying out of an open bottle and tadpole ghosts rushing into it. A completely new addition to the collection is Absolut Paik from the founder of video art, 70-year-old Korean Nam June Paik. Pike is a multifaceted personality. He is not only an innovator of video and performance art, but also an original composer. His contribution to the Absolute gallery is a bottle of shining tubes with televisions inside.
European craftsmen presented the Absolut Originals campaign. The work of sixteen of Europe's most fashionable artists, photographers, architects and designers was published in Time magazine. The Absolut Americana and Absolut Southwest campaigns featured American primitivists rooted in folk roots. Absolut Heritage and Absolut Expressions provided an outlet for African American creativity. Sometimes products of “absolute art” take on bizarre and exaggerated forms.
For example, what can we say about the eleven-meter-high sculpture “Absolute” in the Swiss Alps? Or about a field in eastern Kansas seeded in the shape of a bottle? The crop size is 12 football fields, so the bottle is only visible from the air. In the far north of Sweden there is a hotel built from ice. In his bar there is a five-meter ice sculpture of an Absolut bottle. The success of this PR campaign is evidenced by the fact that the hotel and the bottle have already appeared together in hundreds of television programs around the world. Absolut's most ambitious and attractive cultural project in the United States was called Absolut Statehood. The most popular work of the project was “Absolut Louisiana” by artist George Rodrigue. He depicted on the canvas his favorite character - a dog named Tiffany. Tiffany - In the Absolut ad, she sits on a rug in front of a vodka bottle with flowers inserted into it.
"Absolute Capitals" and "Absolute European Capitals" are two of Absolut's most notable print campaigns in recent years. "Europe's Ultimate Capitals" appeared on the inside cover of Newsweek magazine, one city per issue. The "Absolute Capitals" campaign selects well-known cities with a strong individual character. For example, "Absolute Los Angeles" conveys the atmosphere of the city, although it does not show the cityscape itself. Instead, in the central place is a swimming pool, as you can guess, in the shape of an Absolut bottle. The spirit of the city is also noticeable in the guitar (“Absolute Madrid”). These posters transport the viewer to a specific place and allow you to imagine yourself sitting next to a pool or listening to a flamenco guitarist in a bar, with a glass of vodka, of course. Now the company name corresponds to the brand name - The Absolut Company, Stockholm.
The primary reason for the success of Absolute print advertising is the method by which the advertisement greets the reader. In The Sign of the Swoosh, authors Robert Goldman and Steve Papson say that "advertising has learned to satisfy readers who find pleasure in deciphering messages." Absolut advertising fully satisfies this concept. The “puzzles” that the company publishes are similar to educational games for children or their bored parents:
"Absolut Chicago", a campaign in which the letters on the bottle fly apart in the wind. The popular name for Chicago is “The Windy City”.
"Absolut Geneva", which features gilded teeth and gears, invites us to remember that a) Geneva is the capital of Switzerland, b) Switzerland is famous for the accuracy of its watches.
"Absolut Rosebud" is an advertisement that takes an unconventional look at a feature film that many are familiar with. The sled featured on the poster is an imitation of the sled that Charles Foster Cape rode on as a child in the movie Citizen Kane. Anyone who has seen this picture or is at least familiar with the script will be able to recognize the reference to Citizen Kane.
“Absolut Primary” is an advertisement from 1996, the year of the penultimate re-election of a US president. Drops of a dark substance, which can be defined as a metaphor for dirt, cover the Absolut bottle. The message appears to be in the political idiom of "mud-slinging", which often appears in election campaigns. During the last elections in 2000, these messages appeared again.
"Absolut Texas" The creative subtly plays on the common American expression that “everything is bigger in Texas.” This is a humorous advertisement, but it suggests another reading. The reader may think that Texans are thirsty people. The size of the bottle is large compared to other absolute states and one can conclude that the people of this state need a lot more liquor. To a reader unfamiliar with the Texas myth, the meaning of the ad seems twofold.
Absolut Evidence Campaign. The advertising message consists of three elements: “Absolute”, the word “Proof” and a fingerprint.
Absolut Houdini, named after the famous American illusionist Harry Houdini (who knew how to disappear from closed rooms and appear where he was not expected), was advertised with a poster that did not contain a bottle, only a wet mark on the table. The series of the late 80s “Absolute Glasnost” is well known, when, in the wake of interest in Russia, a series was commissioned from famous avant-garde artists.
A separate story is the relationship between Absolut and the world of fashion business. In 1987, fashion designer David Cameron created the first Absolut clothing collection for the company. Since then, Absolut has collaborated with hundreds of the world's most renowned designers, most notably the late Gianni Versace. Absolut's most ambitious creative project is associated with the Absolut Versace collection. Created in 1997 by order of the company, the Versace clothing collection was photographed by famous fashion photographer Herb Ritts in the interiors of the Ice Hotel, another facility used to promote Absolut vodka. Built annually in the north of Sweden, 200 km beyond the Arctic Circle in the town of Jukkasjärvi, the construction of which takes 5 thousand tons of ice and 2 thousand tons of snow, has become a podium for supermodels Kate Moss and Naomi Campbell. The Herb Ritts shoot appeared as an eight-page insert in Vogue magazine, and the presentation of the collection took place at the world-famous Cotton Club in New York. Hermetic emptiness works on the idea of stimulating consumer interest by creating the illusion that it is we ourselves who consciously and freely attach this or that meaning to an advertising poster. While in fact this poster may already contain all the necessary attributes to form the desired perception. The Absolut brand ranks third in the world in terms of sales volumes. And currently, Absolut vodka is in demand.
Absolut's marketing achievements are reflected not only in sales results, but also bring moral satisfaction to their creators. Absolut is the only foreign brand inducted into the American Marketing Association Hall of Fame. Besides Absolut, only two have received this honor among the entire American variety of brands - Coca-Cola and Nike. Absolut's marketing achievements are reflected not only in sales results, but also bring moral satisfaction to their creators.
Absolut is a good Swedish vodka. But paradoxically, it is not famous for its quality, but for its excellent advertising concept. Each new advertising campaign is a modern and advanced promotion. The action is close to absolute.
Conclusion
The expansion of competition, the desire of manufacturers and sellers to attract potential consumers to the goods they produce and sell, and the need to retain existing buyers and clients have significantly intensified the use of communication policy methods in business activities.
Marketing communication policy influences consumer behavior, turning him from a potential buyer into an actual buyer.
There are methods in communication policy that are of the hard type, in stimulating sales policy. This is effective if we are talking about a short period of time, but is expensive for the manufacturer.
Currently, these sales promotion operations are of a softer nature (games, buyer competitions, etc.). They are more effective in creating a positive product image.
The combination of “hard” and “soft” methods of marketing communication policy encourages the buyer to make an immediate purchase, and if the incentive meets the buyer’s expectations and is consistent with the specifics of the product, then it inspires the consumer’s sympathy, interest and devotion to a particular brand of goods.
The study of the main elements of communication policy is aimed at identifying promising means of promoting goods from the manufacturer to the final consumer, creating a company image, maintaining relationships with existing and potential clients.
In conclusion, we can say a few words about the positive results of communication policy as an intermediary organization in the market.
Society promotes the development of intermediary activity, first of all, because the level and quality of life, convenience and comfort of each member of society largely depend on the level of development in society of the intermediary sphere (organization of trade, convenient for the buyer, advertising, home delivery of goods, ordering goods by mail, telephone, etc.); the same applies to consumers of industrial goods.
The development of market relations in Ukraine, the strengthening of financial and industrial groups, the development of modern export production will obviously, over time, lead to the creation of optimal communication systems in domestic and foreign trade.
In order to improve the effectiveness of their activities, the commercial intermediary network of organizations widely use modern principles of management and marketing, constantly introduce the latest forms and methods of wholesale trade, use the best world experience in this area, and actively develop services based on the latest principles of market interaction.
This leads to positive results: intermediary trade frees the manufacturer from the labor and risk of finding distribution channels, making it easier for him to concentrate on the production process; accelerates the rate of turnover (circulation) of capital; the use of communication policy leads to the saturation of commodity markets to the objectively required sizes and the functioning of direct commodity producers in accordance with the interests of final consumers.
Bibliography
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5. Godin A.M. "Branding", Moscow, 2004.
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The goal of any seller– capture the attention of a potential buyer, and therefore emerge victorious from the competition.
Convincing the buyer that purchasing a particular product is profitable and expedient is carried out using various methods: advertising messages, providing benefits, distributing souvenirs, etc. All these means are called communication policy and are known in the specialized literature as means FOSSTISE– generating demand and stimulating sales.
Marketers, referring to FOSSTIS events, say: “If you can do without an intermediary, great. It’s just a pity that in the modern international market you can’t do without it...”
Enterprise marketing communication– a comprehensive impact on the internal and external environment in order to create favorable conditions for stable, profitable activity of the enterprise in the market.
A set of communication tools is inextricably linked with the marketing activities of an enterprise and largely ensures its effectiveness. It is a two-way process:
Impact on the target audience;
Obtaining information about the reaction of the target audience.
The main task of a set of communication tools is to promote a product to the market.
Promotion– creating and maintaining constant connections between the enterprise and the market in order to enhance the sale of goods and form a positive image (image) of the enterprise in the market.
Promotion is based on the communication between the enterprise and the market. Promotion is aimed at ensuring awareness of potential consumers about the benefits and advantages they receive when purchasing a product, taking into account all elements of the marketing mix (price, terms of sale, discounts, etc.).
The main means of influence in the complex of marketing communications are given in Table. 5.1.
Table 5.1
The main means of influence in the complex of marketing communications
The relative importance of those presented in table. 5.1 means of influence in the complex of marketing communications depends on the type of product (Table 5.2).
Table 5.2
Relative importance of the components of the marketing communications mix (in descending order of importance)
The communication process is described using a model that includes the following elements:
Source of information (sender) - usually the enterprise itself plays its role;
Information – information about the product, price, terms of sale that the company wishes to convey to consumers;
Coding - indicating methods for special transformation of information for its better memorization by consumers (through symbols, sounds, texts, pictures, etc.);
Communication channels – indication of the media used;
Addressee (recipient) – the market segment chosen by the enterprise for work;
Decoding is the response of consumers to the information received.
Communication decisions are related to establishing personal or impersonal contacts with potential consumers of the enterprise’s goods (Table 5.3).
To carry out FOSSTIS activities on the foreign market, the structure of the enterprise provides for a special service (department), operating independently or involving third-party Russian and foreign organizations, as well as foreign intermediaries of the enterprise abroad.
The task of the FOSSTIS service– bringing information about the product and its consumer properties to managers.
Table 5.3
Characteristics of types of contact with customers
When implementing FOSSTIS activities, the following rules must be observed.
1. Know your product in every detail.
2. Know your competitors.
3. Know your customers.
4. Make unique offers, i.e. offer something that competitors do not offer.
5. Talking about your products and your company is exciting...
6. ...and the people you need.
5.2. Demand generation (FOS events)
Each buyer is faced with the need to choose among a variety of products the one that best suits his needs. before purchasing the goods. FOS activities provide information for making such a decision.
Participation in exhibitions and fairs;
Free transfer of samples for temporary use or testing;
Publication of non-commercial articles in industry or other journals, etc.
Purpose of FOS activities– overcoming the “barrier of distrust” of the buyer to an unfamiliar product, especially if it is offered by an unfamiliar company, and the subsequent formation of a positive image of the product. When a buyer goes from being ignorant to becoming knowledgeable and then acting and purchasing a product, a product image emerges.
The objectives of FOS activities are presented in Fig. 5.1.
Rice. 5.1. Objectives of FOS events
Of the listed tasks of FOS activities, the main one is the task of introducing a product of market novelty to the market. The effect of this derivation is significant: firms that rely on the development and sale of pioneering (satisfying a new need) and improved (with a new degree of satisfaction of known needs) products achieve significant growth in sales and profits.
To solve the main task of FOS events, various private actions are carried out (Fig. 5.2).
Rice. 5.2. Private shares used by FOS when introducing a new product to the market
Depending on the type of product, FOS activities have specific features (Table 5.4).
FOS activities are distributed through various channels (Fig. 5.3).
In order to rationally select a channel for disseminating information, the FOS carries out special work called analysis of mass communications. The purpose of the analysis is to find a channel that best meets the following requirements:
Availability – the ability to use the channel where and when it is needed from a marketing point of view;
Controllability – the ability to actively influence the timing of advertising release, regions of distribution, etc.;
Cost-effectiveness – minimum costs for one advertising contact with a potential buyer and minimum total costs;
Simplicity - a minimum of effort and money spent on preparing an advertising message.
Table 5.4
Comparative analysis of FOS activities depending on the type of product
Rice. 5.3. Channels for implementing FOS activities
When planning and monitoring FOS activities, the following rule must be observed: A businessman who stops advertising and other communications with a buyer makes a grave mistake. Sales of goods drop sharply, the company loses its gained market share; It is extremely difficult to return to previous positions, since in the buyer’s mind the place of the enterprise is occupied by a competitor.
5.3. Advertising is a tool for promoting a product to the market
The ability to persuade - the seller can repeatedly repeat his offer, the buyer can compare the offers of competitors. Consistent, competent advertising creates a positive attitude towards the seller;
Impersonality - the target audience does not feel the need to immediately respond to the proposal received in the absence of dialogue;
Depending on the stage of the marketing process, advertising performs various functions (Table 5.5).
1) “knowledge - emotions - actions” - consumers react to advertising when comparing it with their knowledge about the benefits of the product (classical approach);
2) “actions - emotions - knowledge” - the consumer makes his choice among products that differ slightly from each other, and then evaluates the results of his purchase, obtaining final knowledge about the product;
3) “emotions - actions - knowledge” - buyers have superficial knowledge about the product and when purchasing it are based on emotions.
Report the existence or appearance of a new product or brand;
Create a brand image;
Cause buyer predisposition to the brand;
Provide information about the benefits of the product (trademark);
Change the idea of a product;
To achieve recognition of the product by potential buyers;
Create a favorable image of the enterprise;
Psychologically prepare the buyer for purchasing the product.
strategy news is based on information highlighting the advantages of the advertised product. The strategy is used by the leading enterprise when it introduces a new product to the market to create primary demand;
logic strategy is based on increasing knowledge about the product, creating and maintaining brand awareness. The strategy is used by enterprises to maintain demand for branded products;
image strategy is based on consolidating the consumer’s positive attitude towards the brand. The strategy is used by enterprises to enhance the positive image of both the product and the enterprise.
What to say (formulate a sentence containing specific information about the product);
How to say (formulate a memorable, interesting proposal that can convince the consumer of the superiority of the advertised product;
In what form to say it (choose a layout, photograph, text, sound design, etc.).
Selecting message channels provides possible use:
Electronic media (television, radio, video, etc.);
Printed publications (newspapers, magazines, etc.);
When choosing a communication channel, it is necessary to take into account a number of indicators (Fig. 5.5).
Rice. 5.5. Indicators taken into account when choosing a message channel
When choosing a message channel, you must take into account the criteria presented in Figure 5.6.
Based on the data shown in Fig. 5.5 and 5.6, it can be stated that it is necessary to find an information channel that offers the lowest advertising prices; provides an optimal combination of coverage and frequency of advertising exposure and a minimum time gap between the preparation and delivery of an advertising message.
1) trading efficiency:
– increasing sales volumes of goods before and after the advertising campaign;
– the effectiveness of work in the market during advertising and without an advertising campaign;
2) communicative effectiveness, assessed using two methods:
– pre-testing (trial testing): the task is to evaluate the reaction of consumers to alternative advertising messages for the subsequent selection of the most communicative ones. In this case, direct assessment, a portfolio test (an interview after an organized display to assess the memorization of advertising messages), a laboratory test (determining attention and emotions in relation to advertising using special instruments) are used; – post-testing: the effect of advertising after its launch is determined. In this case, various tests are used.
Table 5.6
Tests that can be used to evaluate the effectiveness of advertising include:
Memory tests - allow you to determine the extent to which consumers who know a particular advertisement can independently tell its content;
Recognition tests – allow you to determine the number of consumers who recognize an advertisement when it is used again;
Perception tests - allow you to determine the degree of impact of advertising on the consumer. Projective tests (word associations, phrase completion, image reproduction) are especially widely used.
There is no best advertising medium today. The advantages and disadvantages of the main means of advertising are presented in table. 5.7.
Table 5.7
Comparative analysis of the main means of advertising
Table 5.8
In marketing practice they use various types of advertising:
commercial advertising– advertising serving the sphere of market activity, promoting the consumer properties of goods. Its main difference is the change in the behavior of the addressee. The latter, from being passive and indifferent to a given product, must turn into an active, active one, giving his money to the seller;
informative advertising– informing consumers about products to create demand. It is purely business in nature and appeals to reason. The details of the enterprise are provided. It is used mainly for advertising goods for industrial and technical purposes at the stages of implementation and growth;
incentive advertising– creation of selective demand for a product among a selected segment of consumers. Is of an emotional nature. No addresses or telephone numbers are provided. Used at the stage of market saturation when competition is intensifying;
The main element that attracts attention is the title. It performs six functions:
1) attracts attention;
2) defines its reader (for this, an appeal to a specific audience is used - women, children, etc.);
3) prepares the reader to perceive the main part of the text;
5) promises benefits from the purchase;
6) reflects new properties of the product that should interest the consumer.
1. Items of expenses covered from the budget of the enterprise’s advertising department:
– administrative expenses: wages for advertising department employees; remuneration of enterprise employees involved in advertising; commissions paid to an advertising agency; transportation costs for department employees; wages of salespeople performing tasks in the enterprise’s advertising department;
– operating expenses: payment for the printing house (cost of paper, etc.); payment for the cost of television and radio operation; payment of packaging design costs; payment of transportation costs for moving advertising.
2. Expense items included or excluded from the budget at the discretion of the enterprise:
– organizing and conducting sales;
– production of packaging;
– development of price lists;
– payment for telephone conversations with sellers of advertised products;
– price discounts;
– participation in trade organizations;
– preparation of analytical reports, etc.
3. Expense items that are usually financed under the “General expenses” item:
- participation in exhibitions;
– depreciation of the equipment used;
– payment for telephone calls;
5.4. Personal selling is a product promotion tool
Personal selling– personal contacts of the enterprise’s sales staff with customers, oral presentation of the product during a conversation with one or more potential buyers for the purpose of further selling the product or concluding a trade agreement.
Ways to carry out personal selling:
Business meeting;
Traveling salesman cycles;
Product demonstration;
Conducting consultations, etc.
Decision-making on personal sales is carried out in accordance with the algorithm presented in Fig. 5.7.
Determination of areas of activity and number of sales personnel carried out using indicators:
Number of customer visits by one sales representative;
Expected sales.
Organization of sales personnel management involves the creation of organizational structures discussed in topic 1 (1.6).
Sales planning carried out taking into account the determination of quotas for the sale of goods per sales representative.
Rice. 5.7. Algorithm for making decisions on personal selling
Visiting schedules and routes are developed by the sales representative. The most common method of organizing its work is traveling salesman cycles– the time periods required to visit all clients at least once. When developing schedules, it is necessary to comply with such conditions as saving time and money.
The duration of a typical traveling salesman cycle is on average 4 – 6 weeks. Its actual duration depends on the type of product (durable or perishable), the profile of the trading enterprise, etc.
Personal selling technologies: are constantly being improved. In recent years, the following have received particular development:
Business meeting. The algorithm for their implementation is presented in Fig. 5.8;
Sales presentations – putting forward arguments in favor of a product along the chain “attention – interest – desire – action”);
Telemarketing is the constant maintenance of communication between the sales staff of an enterprise and potential consumers using a telephone and an interactive computer program connected to a database. Characterized by low costs, a high level of control over sales, the possibility of additional research in order to activate buyers;
Multi-level marketing (network marketing) is a system of independent sellers working in large areas of the market in a personal sales network. Sales personnel are used to promote goods on a commission basis.
Fig.5.8. Algorithm for conducting business negotiations
At sales staff training Considerable attention is paid to such issues as:
History of the development of the enterprise, its specifics;
Features of the company’s products and competing products;
Properties of consumers and markets;
Issues of organizing and using various types of modern sales technologies.
The personal qualities of employees develop (energy, communication skills, self-confidence, etc.).
Personal sales budget(Bpp) is estimated by the number of sales representatives needed by an enterprise to solve the problem of promoting a product to the market. Calculated using the formula:
Bpp = (KLpot H) / Ksr,
where KLpot is the number of potential customers;
H – frequency of customer visits;
Ksr – the average number of visits for one representative.
5.5. Sales promotion (STIS events)
Sales promotion involves activities aimed at expanding the sale of goods that are not considered new. Both buyers and consumers have already formed some opinion about such a product thanks to either FOS activities or their own experience of use (consumption).
SSIS task– encourage repeat purchases, as well as distribute the product among new groups of customers.
The implementation of STI activities is considered particularly appropriate when:
There are many competing products on the market with approximately equal consumer properties (buyers do not have serious reasons for preferring one brand or another);
To protect the enterprise’s position in the market, it is necessary to expand sales when the product enters the saturation stage;
Sales are carried out through a wide retail network, often not under the manufacturer’s brand name, but under the seller’s brand name.
STIs activities are carried out in relation to buyers and resellers (Table 5.9).
An effective means of STIs is to provide various types of discounts (Table 5.10).
One of the effective methods of sales promotion is the development of corporate identity and product packaging.
Form style- this is a series of interrelated techniques that ensure the unity of all products of the enterprise, contrasting them with the products of a competitor and allowing companies to compare with each other. It includes:
Trademark, trademark, which are registered in accordance with the established procedure;
Logo – a specially designed, original image of the full or abbreviated name of an enterprise or a group of goods produced by it;
Corporate block - a sign and logo combined into a composition, various explanatory inscriptions (address, telephone), a corporate slogan reflecting the commercial and technical policy of the enterprise;
Corporate color;
Branded constants (format, illustrations).
The main purpose of using a corporate identity is to ensure the popularity of the enterprise among the general public.
Table 5.9
Comparative characteristics of STIS activities in relation to buyers and resellers
Decision-making on sales promotion is carried out according to the algorithm presented in Fig. 5.9.
Target group selection is associated with solving the problem of increasing sales of goods during periods of seasonal sales, introducing new products to the market, etc.
Sales promotion tools in relation to buyers and resellers are indicated in table. 5.9.
Table 5.10
Types of discounts provided by the manufacturer to customers
Duration of events sales promotion is determined by the nature of purchases of a given product (constant, impulse). As a rule, an appropriate schedule is drawn up, about which buyers are notified.
Stimulus Budget includes the following costs:
To prepare the incentive plan;
For the implementation of planned events (discounts, prizes, etc.);
For information support for events (advertising, posters, etc.).
Control of incentive measures sales in order to identify their effectiveness is carried out before and after the relevant events and is carried out in the form of testing.
Experts believe that one of the promising areas for sales promotion is the development relationship marketing. Its task is to establish long-term connections between the enterprise and consumers, potential clients, intermediaries and suppliers. Attention is paid to:
Establishing mutual reliability and stability of formal (business) relationships;
Implementation of direct contacts, development of partnerships, etc. in the sphere of informal relationships.
Rice. 5.9. Decision-making algorithm for sales promotion
5.6. Public relations events
A special benefit for the buyer is provided by such a FOSSTIS event as "public relations" those. formation of favorable public opinion. S. Black, a specialist in the field of decision-making in public relations, is famous for saying that “public relations is the art and science of achieving harmony through mutual understanding based on complete information.”
“Public relations” is conducted primarily on a non-commercial basis, fulfilling the role of overcoming the “barrier of mistrust” towards a product and an enterprise, which arises not in connection with the consumer properties of the product, but due to the existence of stereotypes in people’s minds.
The formation of a stereotype is based on the collective special experience of people and is often associated with their national characteristics and social status. A stereotype is the image of a country and its inhabitants, formed under the influence of newspapers, television, and radio broadcasting. If such an image is negative, then a wary attitude towards goods from this country unconsciously arises. The task of “public relations” in this case is to overcome such a stereotype, at least in relation to the proposed export goods.
When organizing public relations, the following goals must be achieved:
Establishing mutual understanding and trust between the enterprise and the public;
Creating a positive image of the enterprise;
Maintaining the reputation of the enterprise;
Forming in employees a sense of responsibility and interest in the affairs of the enterprise;
Expanding the sphere of influence of an enterprise using advertising media.
"Public Relations"– the art of creating a favorable climate not only in the “seller-buyer” relationship, but also in the attitude of the general public towards the seller at different levels (up to the government level).
For these purposes, the image of the enterprise is formed. The image is created with the help of advertising, the main task of which is to show that people’s problems can be solved only with the help of the products of this enterprise.
TO Public relations activities include:
Press conferences with the invitation of television and radio correspondents;
Non-commercial articles, television and cinema films, radio broadcasts;
Various anniversary events;
Various social and charitable activities in favor of the country with which trade is conducted;
Sponsorship in the fields of book publishing, technology, economics, art, financing of research work, sports competitions, etc.;
Annual reports on the activities of the enterprise;
Formation of a positive image;
Responses in the media.
Using these events, they do not promote goods and their purchase, but explain the purpose of goods to improve people’s well-being, ease working conditions, etc. At the same time, they try to show that the enterprise operating on the market is a “good citizen” of the given country.
Public relations messages should be filled with new, unexpected facts to arouse interest and make the messages memorable.
There are corporate and marketing “public relations”, which complement and integrate various methods of promoting a product to the market.
A special role in the field of public relations is played by:
Formation of the image of the enterprise and the goods it produces - the idea must be conveyed to consumers that the commercial activities of the enterprise are aimed primarily at meeting the needs of its customers. The best means to achieve this goal is corporate advertising;
Preparing for the press new attractive information about the company and its products. As a rule, it is free advertising;
Sponsorship is the development of modern forms of patronage (sports, culture, art, education, ecology, etc.).
5.7. Planning and control of FOSSTIS events
The activities of FOSSTIS are usually classified as non-productive expenses, and therefore they strive to limit its financing. However, there is a certain minimum cost for FOSSTIS, below which it is not advisable to fall, because the results of activities will be insignificant and even zero.
If the enterprise does not have experience in the foreign market, when introducing a product it is advisable to use the “following the leader” method. To do this, select an enterprise that is already operating in this market, obtain data on its costs for FOSSTIS, annual sales volume and determine the value TO:
Where R– expenses for FOSSTIS, rub.;
Vsat– sales volume, rub.
Knowing the magnitude TO and the sales volume planned by the enterprise determine the costs required for this enterprise for FOSSTIS. Due to the fact that the degree of competition increases with entering a busy market, it is necessary to increase the resulting amount of expenses by 5–10%.
The FOSSTIS planning scheme includes the sequential implementation of the following actions.
1. Statement in writing of the campaign goal(s).
3. Consideration of each market separately and establishing what information buyers need and what information each FOSSTIS event must convey to them.
4. Selection of FOSSTIS means (information transmission channels).
5. Determining the frequency of advertisements in each channel and their duration.
6. Assessing how FOSSTIS will affect the volume of production, transportation and sales of goods.
7. Formulation of the central idea of the FOSSTIS campaign.
9. Assessing the quality (expected effectiveness) of FOSSTIS tools and making amendments based on the test results.
10. Making a decision to start a campaign in accordance with the developed schedule.
11. Final approval of the campaign budget developed at the first stage of preparation.
If funds are found to be insufficient, campaign goals are ranked in order of importance and the least important are eliminated until a feasible budget is reached.
After the campaign is completed, its final effectiveness is assessed.
Situations to analyze
– microencapsulated means that each particle included in the pill is enclosed in its own shell;
– all solid state tv has only one traditional electron tube - a kinescope;
– nutritional value of foods consists of vitamins and proteins;
– polyunsaturated fats rich in proteins;
– summer cold different from the common cold;
- All non-alkaline medicinal shampoos consist only of natural ingredients.
Comment on the information. Is it true?
2. Where could you report a false promise from a consumer goods advertiser you saw on television?
3. World experience shows that the costs of personal forms of communication exceed the costs of advertising (in the USA - 2 times, in France - 3 times, etc.). What can you suggest for more effective use of communication links with potential buyers?
- “Tefal! You always think about us!”;
– “It won’t be cheaper than now”;
- “Do you have a problem? We have a solution"?
– “Never have there been so many maxis in minis”;
– “A cup of coffee in your pocket”;
- “Our cold is in your house”;
6. The Zdorovye enterprise, located in Tula, produces sportswear. The management of the enterprise set a task for the marketing service: to create a brand image on the Russian market. To achieve this goal, service specialists have chosen sports sponsorship, but have not yet decided which of the most developed sports in Tula - football or cycling - will be the subject of their attention. What factors need to be taken into account to decide on the sport for further work?
7. Many people believe that the quantity of goods sold depends on the amount of advertising costs of the enterprise. Is it correct? Justify your opinion.
8. How can external environmental factors affect AvtoVAZ’s advertising costs?
9. The largest manufacturer of knitwear in Belgium sells its products in supermarkets and department stores under one brand, and in expensive specialty stores under another. For what purpose does he do this and what, in your opinion, are the results of his actions?
As a result of mastering this chapter, the student should:
know
- the essence of communication policy, the complex of its means;
- the essence, goals, principles, means and methods of advertising activities, as well as the organization of the activities of advertising departments;
- main content PR, sales promotion, personal selling and direct marketing;
be able to
- develop an advertising campaign budget;
- develop sales promotion activities, PR and direct marketing;
own
- skills in drawing up a plan for an advertising campaign, sales promotion events and PR- stones;
- methods for assessing the effectiveness of enterprise communication policy tools.
The main content of the organization’s communication policy
Communication complex is a complete set of controlled communication elements, by manipulating which an enterprise has the opportunity to present a product or service in an attractive light to the target audience.
The communication process is a promotion mechanism, which is an appeal from the manufacturer to the consumer in order to present the company’s products in a form that is attractive to the target audience.
A promotion mix is a combination of communication strategies that a company uses to convey to consumers the benefits of a product and encourage them to purchase it.
The communication strategy is developed as part of the overall marketing strategy of the enterprise and is implemented through the use of individual elements.
Sales promotion – a variety of short-term incentive measures aimed at encouraging the purchase or sale of a product or service.
PR (public relations ) – various programs created to promote and (or) protect the image of the enterprise and its products.
Personal selling – interacting directly with one or more potential buyers to organize presentations, answer questions and obtain orders.
Direct Marketing – a method of promoting a product that uses direct communication with consumers.
All communication elements differ: in nature and in the direction of impact.
By nature they can affect the senses or the mind; have a personal or non-personal, long-term or short-term impact. For example, sales promotions such as tastings or free product samples are short-term but intense means of influencing potential buyers. Propaganda, as a rule, influences the logic, the mind of buyers and has a long-lasting and sustainable effect on them.
Any communication process includes the following elements:
- the sender of the information (individual or organization);
- message (text, image);
- media (information transmission channels: newspapers, radio, television, etc.);
- recipient of information (target group, individual).
Let's look at the elements of the communication process in more detail.
The sender of the information can be a manufacturer, intermediary, wholesaler or retailer. The message should make potential consumers feel worthwhile and want to buy.
The choice of means and channel for transmitting information is determined, on the one hand, by the nature of the message, and on the other, by the nature of the target group of buyers. When choosing a means and channel for transmitting information, you must keep in mind that:
- radio is good to use to influence car owners;
- television provides a wide audience for advertising durable goods, purchase decisions for which are usually made within the family;
- commercial letter – for direct, personal contact with a potential buyer;
- specialized magazines – for specialists making decisions about purchasing investment goods.
The recipient of the information is the target group or individual.
Target group (audience ) is the consumer group that the communication strategy is aimed at. Both the choice of strategy and the effectiveness of the communications mix significantly depend on the correct definition of the target audience. Target audiences can be not only groups of actual and potential consumers, but also individuals, as well as the general public.
Based on a specific target audience, an enterprise can choose one of the communication strategy options:
- 1) attraction strategy aimed at the end consumer, user of the product (service). This method of promoting a product generates demand from the end consumer, encouraging him to contact the company or retail outlets;
- 2) push strategy assumes that promotion is directed at the reseller in the expectation that he himself will promote the product through distribution channels to the final consumer. The promotion decision-making process includes developing a communications program, implementing it, and evaluating its effectiveness.
The development of a communication program consists of several stages (Fig. 9.1).
Rice. 9.1.
At the first stage, the target audience is determined, after its selection - the communication goals, which must be measurable, designed for a certain period of time and a specific target audience. Having determined the goals, the enterprise develops a budget for the communication program. There are several options for developing a budget:
- method of budgeting as a percentage of sales, which takes into account the volume of previous or expected sales;
- competitive parity method those. copying the absolute level of costs of competitors or the level of costs proportional to the competitor’s market share;
- residual budgeting method in which money for promotion is allocated only after all other expenses have been taken into account;
- method of budgeting based on goals and objectives, with the help of which an enterprise determines the goals of its communication program, outlines the tasks arising from these goals, and calculates the costs of completing these tasks;
- other methods.
After drawing up the budget, based on an analytical approach and experience, they select communication elements - advertising, sales promotion, personal selling, PR and direct marketing.
Having completed the creation of a communication program, a schedule for the use of its elements is drawn up, which includes the sequence of implementation of the programs and the purity of their use for a certain period.
The final stage of the communication program is to determine its effectiveness based on a system of tests.
Communication policy in the marketing system is a long-term course of action of an enterprise (or its representatives), aimed at planning and implementing the interaction of the company with all subjects of the marketing system based on a well-founded strategy for using a set of communication tools (communication mix) that ensure stable and effective generation of demand and promoting offers (products and services) to markets in order to satisfy customer needs and make a profit.
At the same time, communication policy is also considered as a process of developing a set of measures to ensure effective interaction between business partners, organizing advertising, sales promotion, public relations and personal selling.
In structure, communication policy includes two areas: interpersonal communications - communication and interaction; non-personal communications, considered as a process of manipulating means and methods of communication. Both areas are an integral part of the company's communication program. Interpersonal communications are carried out between two or more persons who directly communicate with each other without or using any means of communication (telephone, Internet, television, etc.). Non-personal communications are carried out in the absence of personal contact and feedback using means of mass and selective influence, depending on the current environment (print, radio, television, billboards, etc.).
The classical understanding of communication policy as the conscious formation of information sent to the market in conditions of developed market relations does not reflect the completeness and consistency of business communications. The concept of marketing interaction requires, in the process of communications, informing not only consumers about the goods, services and activities of a particular company, but, just as importantly, other subjects of the marketing system, without which the organization of marketing activities is impossible. Moreover, marketing activities in this case are not limited only to promotion functions. In functional terms, the communication process should include actions and activities related to the organization and coordination of interaction of a particular provider with the subjects of the marketing system. This is explained by the fact that the effectiveness of market processes and decisions, their level of consistency and effectiveness depend on the nature and quality of interaction between business entities. Moreover, in developed market relations, along with the dyadic form of interaction, an intergroup form of interaction between business partners is being actively introduced.
Therefore, the implementation of communication policy should be based not only on a program for manipulating means of promoting a product or service, but also on the use of measures to motivate the active interaction of business partners at each communication level.
For commercial enterprises, there are usually two levels of communications:
- a) the level of general communication, within which the communication policy of the enterprise is developed, the strategic target setting and basic tools for implementing communications are determined. The organization and management of the communication process at this level is entrusted to the management and top management of the company;
- b) the level of structural units at which decisions are made on the use of an arsenal of communication tools. These are departments of advertising, sales promotion, public relations, internal communications, sponsorship, etc. The tasks of these departments include the planning and implementation of appropriate communication tools within the framework of the adopted strategy and tactics for implementing the integrated concept of the company's communication activities. Responsible for completing tasks at this level are the heads of the relevant units (departments, groups).
Recently, there has been an increase in the importance of communication policy in marketing due to the following circumstances: - increased competition for consumers; - increased risks associated with the creation of new products; - increasing requirements for quality standards, which makes it difficult to differentiate goods.
Communication policy represents the implementation in practice of the fourth element of marketing “promotion” (English: “promotion”). It involves solving problems related to how, through whom and in what ways to promote a product on the market. Communication policy in marketing is aimed at making a profit by influencing the formation of subjective perception of a product by buyers, in contrast to other elements of the marketing mix that objectively influence buyer behavior.
Promotion is activities aimed at increasing sales efficiency through communicative influence on staff, partners and consumers. Promotion has a dual purpose: activating consumer demand and maintaining a favorable attitude towards the company.
There are four main types of promotion in marketing: advertising, direct sales, propaganda and sales promotion. Let's take a closer look at them.
Modern marketing theory interprets advertising as “... non-personal forms of communication carried out using paid means of disseminating information with a clearly indicated source of funding” (Kotler F. Fundamentals of Marketing). It is necessary to distinguish between advertising as part of marketing and advertising in general. The main function of advertising in marketing is to inform the consumer about the consumer properties of goods and the activities of manufacturers. Advertising activities should be viewed through this prism. You can give as prestigious and expensive advertising as you like, but if the advertised product is not in demand on the market, it is unlikely that you will be able to sell it.
The effectiveness of influencing consumers is determined by the evaluation of the promoted goods contained in advertising and the arguments in their favor. If the consumer does not detect such an assessment and argumentation, then the effectiveness of advertising is significantly reduced.
- * Objective arguments - logically revealing the features of the advertised product (for example, advertising for Dirol chewing gum).
- * Subjective arguments - forming certain emotions and associations in consumers (for example, advertising of “Fruit Garden” drinks).
The advertising offer must be radically different from all competitors' offers. Its uniqueness may be associated with the uniqueness of either the product, the target market, or the advertising message itself. Without the uniqueness of the supply, you cannot count on the uniqueness of the demand.
- * In-demand information that is accessible, understandable and quickly remembered. Such information does not require expensive advertising media. A few lines in a newspaper or on a bulletin board - and the advertisement will go off. For example, information about “help” in writing coursework and dissertations for students.
- * Random information that is not remembered or is remembered with great difficulty. Such information is “linked” to the advertising medium. A potential consumer should know where to look for an advertising offer if necessary. For example, most consumers who want to install plastic windows turn to free advertising publications. The seller's task here is to be in the right place at the right time.
- * Unnecessary information that the consumer ignores or is irritated by. Unnecessary information is always present, since it does not happen that a product is in demand by absolutely everyone. The question is which part of the audience perceives advertising information as unnecessary, and which part - as random or in demand (for example, the viewing audience of television advertising).
As soon as the consumer realizes his need for the advertised product, he is ready to make a decision to purchase it. The task of marketing when planning advertising events is to correctly determine the target audience and means of conveying information about the product. Do not try to force the buyer to purchase the product, but facilitate his independent decision to purchase.
II. Personal (direct) sales.
This is part of the promotion of goods, including their verbal presentation for the purpose of sale in conversation with potential buyers. Another name for this activity is direct marketing. It does not require additional financial investments and acts as a higher level of business organization than banal retail trade or the provision of household services.
At a minimum, this type of promotion implies knowledge by sales personnel of the features of the use and maintenance of the goods sold, as well as qualified customer service. We are talking about communication technologies for promoting goods in the process of communicating with customers. The salesperson on the sales floor is called upon to provide the buyer with the “final argument” in favor of making a decision to purchase a product.
Ignoring direct sales methods can lead to a significant reduction in sales, even if all other marketing conditions are met. So, for example, if the product is cheap and of high quality, the store location is ideal, the assortment is huge and the advertising campaign is effective, but the sellers are rude and disinterested in communication, sales at the outlet are unlikely to be successful.
The essence of personal selling comes down to turning the sales agent from a simple receiver of orders from consumers into their active earner. The organization of personal selling is based on the use of two main approaches:
- * Sales orientation: an aggressive sales method that involves discrediting competitors, exaggerating the merits of one's own products and discounts for immediate purchase. The motto of this approach is: “Sales at any cost.”
- * Customer orientation: a method of participating in solving customer problems. Based on identifying the needs of potential clients and proposing ways to satisfy them. The motto of this approach is: “Sales through collaboration.”
Personal selling has a number of advantages, including:
- * Individual approach to each consumer and the ability to transfer a significant amount of information.
- * Less than in advertising, the amount of costs that do not bring financial results.
- * Feedback from consumers, allowing timely adjustments to advertising campaigns and the production process.
The main disadvantage of personal selling is the higher level of turnover costs than in traditional trading, since relationships within the trading network are often built on the “pyramid” principle. Personal selling is most effective when the seller has an exclusive product on the market. If a product is sold simultaneously by door-to-door salesmen and retailers, personal selling inevitably loses competitiveness because the product loses exclusivity in the eyes of buyers.
In general, personal selling is extremely effective in solving a number of marketing tasks: identifying potential customers, collecting market information, etc. Relying on sales personnel allows you to more effectively communicate with consumers and quickly respond to any changes in the market situation.
III. Propaganda (PR, publicity)
It is a type of public relations, representing non-personal and not paid by the sponsor stimulation of demand for a product through the dissemination of commercially important or image information, both independently and through intermediaries. The purpose of propaganda is to attract the attention of potential consumers without spending on advertising.
Main propaganda tools:
* speeches - participation of company representatives in the opening of various events, welcoming words, etc.; * events - organizing press conferences and online meetings, holding seminars and anniversaries, participating in exhibitions, competitions and competitions, etc.; * news - providing the media with favorable news about the enterprise, its products and employees (press releases); * publications - annual reports, newsletters, brochures, magazine or newspaper articles and other printed materials used as tools to influence target markets; * sponsorship - allocation of time, money and material resources to facilitate the organization of charitable, sports and other socially significant events; * means of identification - use of the emblem (logo) of the enterprise, writing paper with watermarks and other marks, multi-color stamps, business cards, creation of websites, development of a unified style and design of premises, introduction of uniforms for employees, distribution of brochures about the enterprise, etc. .
Four types of propaganda recipients should be distinguished.
- * Consumers - in order to form a positive image of the product (usually related to the environment) and the image of the company. The problem is solved through the organization of promotions, socially significant public events, placement of image materials in the media, etc.
- * Contractors - for the purpose of developing the trading network and attracting new partners. The problem is solved through exhibitions, presentations, distribution of advertising and promotional materials, etc. These events allow you to get a double effect through the presentation of products and personal contacts with customers.
- * Key journalists (press, radio, television, Internet) - with the aim of promoting free information about the most significant events and new products. The problem is solved through organizing press conferences, sending out press releases, etc.
- * State and municipal authorities and management - in order to attract them to participate in business development. The problem is solved through participation in socially significant projects, co-financing of public events, etc.
There is an important pattern: the higher the level of market monopolization, the more propaganda prevails over advertising. Otherwise, the commercial effectiveness of promotional activities turns out to be much lower than the effectiveness of advertising and propaganda is less important for promoting products.
IV. Sales promotion
This is a set of other activities designed to promote product promotion. It includes activities related to relationships in the sales and promotion system that are not included in other components of the marketing mix. A characteristic feature of sales promotion activities is their direct connection with the consumer properties of the product, its price or sales system.
Sales promotion is aimed at three recipients:
- 1. Buyers - in order to encourage consumers to make more purchases. Forms of customer incentives can be different:
- * contests, games and lotteries; * loyalty programs (discounts for repeat purchases, discount cards); * promotions on the occasion of the launch of a product on the market or for any other reason; * demonstration of goods by promoters; * free samples (samples), discount coupons, etc.
- 2. Counterparties - in order to encourage them to increase the volume of trade transactions and focus on promoting the supplier’s products. Forms of incentives for counterparties can be different:
- * provision of promotional materials and sales equipment; * assistance in training sales staff;
- * holding competitions based on sales results, authorized dealership, etc.; * provision of related services (legal, information, etc.).
For example, the Coca-Cola company provides free refrigerators to retailers, and suppliers of complex household appliances pay for training and certify contractors when they create authorized service centers;
- 3. Sales personnel - in order to encourage sales staff to direct more efforts to improve the quality of service and attract consumers. Forms of incentives for sales personnel can be different:
- * sales competitions between employees;
- * material (prizes, bonuses) and moral (certificates, honor board) incentives;
- * training, treatment and retraining of personnel at the expense of the company; * payment of vouchers to employees who have no complaints from the employer, etc.