Theoretical foundations of demand formation and sales promotion. Demand generation and sales promotion

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Demand generation and sales promotion system (FOSSTIS)

Demand formation and sales promotion system(FOSSTIS) - directs its efforts to address the effective demand of target groups, namely for “our” product, in connection with its ability, due to the presence of certain functional properties, to satisfy the need that has arisen among buyers. This solves the problem of choosing between "our" goods and competitors' products. And, naturally, the profit of the enterprise will ultimately depend on how informed the buyer is about the product, its properties and ability to satisfy specific needs.

In the activities of a business entity to create demand and stimulate sales, two effects should be distinguished:

communication (informing)
commercial

The consequence of the communication effect is that the buyer easily accepts the name of the company, product mark, brand during the survey, and identifies these attributes among the entire product offering, associating them with a certain level of quality and price.

The second effect, commercial, is clearly manifested in the client’s intention to buy this particular product. So, as a rule, “hot on the heels of FOSSTIS events”, this effect manifests itself in 12-15% of respondents.

In order to be able to respond affirmatively to any comments, you should first develop a strategy for action on each specific one, covering individuals whose behavioral characteristics are well known, taking into account the phase of the product’s life cycle and the volume of predicted demand. Next, you should pay attention to the company promoting the product, in particular, the volume and sequence of use of the selected means of promoting the product. It would be nice, if possible, to develop a set of measures, the cost of which does not necessarily have to be very high. An approximate ratio of cost items for activities that create demand for products and ensure constant renewable sales in a certain period may look like this:

costs for the development and “promotion” of a trademark – 18% of the total costs
expenses for presentations, exhibitions – 18%
direct mail advertising – 14%
provision of various types of services to a potential buyer (consulting, engineering, auditing and other services) – 11%
discounts, bonuses, incentives – 12%, lotteries, souvenirs, gifts – 11%
pure stimulating video, audio, print advertising – 12%
meetings, conferences – 4%

When planning and implementing these actions, you should remember the basic rule of sales “We don’t need immediate results, but regular customers for many years”. How to achieve this?

The demand generation and sales promotion system consists of 2 blocks:

Demand generation activities (DFS)
sales promotion activities (STIS)

The main goal of demand generation activities is to inform potential buyers about the existence of a product, talk about the needs that this product satisfies, provide evidence regarding the quality of the product and maximize confidence in the product, brand, brand.

In this regard, the introduction of goods to the market "market novelty", securing initial sales and gaining some market share is the main objective of demand generation activities. Since the purchase decision, in many cases, is subject to discussion, the formation activities should contain a targeted impact on everyone who is in any way involved in the purchase decision.

Demand generation activities

As demand generation activities, the following means of influencing the target audience are used:

advertising
public relations (PR)

Sales promotion activities

The main goal of sales promotion activities is to form a stable consumer preference for a particular product, brand, product and, accordingly, make repeat purchases. The purpose of sales promotion activities is to encourage subsequent purchases of this product, the acquisition of large quantities, and regular commercial relations with the seller company.

Activities in the field of sales promotion activities are of particular importance in conditions of highly competitive and saturated markets.

As for sales promotion activities, they are divided into two groups, depending on the object of promotion.

Sales promotion activities for intermediaries encourage them to sell with maximum energy, expanding and “strengthening” target segments. Such events include:

provision of equipment for sale, pre- and after-sales service free of charge or on preferential terms
organization of mobile service points and workshops
providing discounts from the sales price
cash rewards
additional days of rest
valuable gifts, moral forms of influence

Advertising and PR

Due to the fact that among the variety of means and activities of demand generation and sales promotion systems, advertising and PR are the most popular and often in demand, let us dwell on them in a little more detail.

There is no single definition of what exactly the activity called “public relations (PR)” is, since many different interpretations of this concept have been proposed over the decades. Therefore, it would be advisable to consider several of them.

The Institute of Public Relations (IPR), created in the UK, gives the following definition: "Public Relations" - is a planned, ongoing effort aimed at creating and maintaining goodwill and mutual understanding between an organization and its public, where the “public of the organization” refers to employees, partners and consumers (both local and foreign).

One of the current definitions contains the Mexican Statement, which representatives of more than 30 national and regional PR associations made in Mexico City on August 2, 1978. It says:

“PR is the art and science of analyzing trends, predicting their consequences, making recommendations to organizational management, and implementing programs of action to benefit both organizations and the public.”

“PR” can also be defined as one of the management functions that promotes the establishment and maintenance of communication, mutual understanding, goodwill and cooperation between an organization and its public. It includes solving various problems:

providing the organization's management with information about public opinion
assisting management in developing a response
ensuring management activities in the public interest
maintaining it in a state of readiness for various changes by anticipating trends in advance
using research and open communication as core tools

The Public Relations Society of America (PRSA) expressed the following opinion on this matter on November 6, 1982:

“PR, by promoting understanding among individual groups and organizations, helps our complex, pluralistic society make decisions and act more effectively. They ensure the harmonization of private and public activities. PR serves many public institutions: business, trade unions, government agencies, voluntary associations, foundations, hospitals, educational and religious organizations. To achieve their goals, these organizations must establish strong relationships with many different audiences or public groups: employees, members of various associations, consumers, local communities, shareholders, etc., as well as with society at large. Achieving the goals of an organization requires its leader to have knowledge and understanding of the views and values of the people with whom his organization works. The goals themselves are determined by external factors. The PR specialist acts as an advisor to the leader and as a facilitator to help him translate personal goals and objectives into reasonable, publicly acceptable policies.”

Thus, PR is activities aimed at creating a positive public opinion, the image of the manufacturer of a product, trademark, brand. Today they are becoming very popular and relevant due to the fact that the activities of an enterprise, including its marketing component, are becoming increasingly socially and ethically tinged.

Demand generation and sales promotion (FOSSTIS) occupy a special place in the production and sales sphere of modern marketing, as it represents the most active part of the entire marketing toolkit. The FOSSTIS service is an integral element of the entire marketing organizational structure of an enterprise, regardless of what goods (products or services) the enterprise produces and offers to its partners.

In the activities of the FSSTIS, it is necessary to distinguish between communication (information) and commercial effects. Thanks to the communication impact, potential and current buyers easily remember the name of the advertising company during a survey and identify its product as being of fairly high quality (if it is, of course, competitive). Awareness is usually demonstrated by 60-80% of respondents, however, only 20-25% prefer the product to others. As for the intention or desire to immediately buy this product, only 12-15% of respondents showed it during the survey; this is the usual commercial effect of well-placed advertising.

From the point of view of FOSSTIS, the division of goods into two large groups is of fundamental importance: personal consumption goods (IP) and industrial goods (IP).

The IP product is usually used (consumed) by those who buy it. With the help of a product, individual entrepreneurs usually do not produce other goods and do not receive income. The decision to purchase is made solely by the buyer, in certain cases - after discussion with family members, and the decision-making time is short, sometimes a few seconds. Purchasing motives are determined by the buyer’s personal needs, less often by group needs (of the small group to which he ranks himself). The purchase decision is greatly influenced by emotions, especially those caused by advertising, as well as fashion, the desire to imitate celebrities who use this product. IP goods are divided into short-term and durable goods, which also introduces nuances into the decision to purchase them.

IP products are usually intended for a wide range of the population, so they are replicated at the enterprise in hundreds of thousands, millions and even tens of millions of pieces. Accordingly, sales require extensive production and distribution networks, usually multi-stage.

To successfully sell the product (buyers) were well aware of the consumer properties of the product offered, places of sale, prices, discounts and payment terms. And since purchasing decisions are made by millions of people, large-scale, often national, advertising campaigns that require significant funds become necessary.

PN goods are intended for the production of products or services, and therefore for making a profit. The people who buy PN products or make the decision to purchase them are not the same people who directly use them, but the decision itself is usually made collectively at a fairly high level, often after a long discussion. Because the wrong decision, especially in the case of purchasing complex and expensive equipment, can lead to noticeable financial losses and a decrease in the competitiveness of the enterprise.

There is a misconception among business executives and trade workers that purchases of PN goods, advertising and other activities under the FSSIS should be addressed to a specialist. Meanwhile, the decision to purchase a PN product is made not by a specialist engineer, but by a businessman, manager; in order for a specialist to begin considering the subject of advertising in connection with the need for purchase, he must receive instructions from a businessman, manager or other decision-maker. Even if we assume that a businessman is a good technical specialist in the past, he will still consider the product first from economic, then from technical positions. Therefore, the persons to whom advertising campaigns should be primarily targeted, whose psychology should be taken into account, are managers and businessmen. The latter must know what socio-economic (and not technical) results the use of the proposed product can lead to, what benefits its consumer will receive. The FOSTI service must consider the product of its enterprise “through the eyes of the buyer.”

The PN product must satisfy the needs of the buyer (industrialist, businessman) when solving production or socio-economic problems (improving the financial performance of production processes, reducing the harmful impact on the natural environment, reducing energy, material and labor costs). These socio-economic and socially significant characteristics of PN goods should be revealed and especially clearly demonstrated by the FOSSTIS service.

However, there is little information of this kind to decide on a purchase. By offering its product, a company very often, in fact, tries to persuade the buyer to abandon the previous supplier.

Naturally, this proposal will be met with caution, even distrust. A manager who cares about the prosperity of his business wants to be sure that his decision will not cause negative consequences for the business. In order to reduce the buyer’s “barrier of caution”, it is necessary to find compelling, truthful and unquestionable arguments from which it will follow that the declared socio-economic and technical characteristics of the product correspond to reality. Arguments will inspire confidence especially when they are supported by evidence from independent companies and organizations professionally involved in testing and certifying products.

Although there are usually significantly fewer potential buyers of PN goods than buyers of IP goods, their number is still very large. Therefore, advertising for PN goods can be the same voluminous and expensive campaign as in the case of IP goods.

To successfully enter the market, an enterprise, focusing on the selected target market, and more precisely, its preferred segment of the target market (in advertising practice - a contact audience), must offer its potential buyers (consumers) an attractive product of market novelty. In accordance with this, it is planned to hold events in order to create demand for the product (FOS event), the main one of which is trade advertising.

Demand formation (DF) is to inform a potential buyer about the existence of a product, inform him about the needs that are satisfied by this product, provide evidence regarding the quality of satisfaction of these needs (i.e. describe the consumer properties of the product), and minimize the “barrier of caution” ", for which, in particular, to inform about guarantees to protect the interests of the buyer if he is not satisfied with the product. With the help of FOS events - advertising, exhibition and fair activities, etc. - a “product image” is formed in the mind of a potential buyer, which plays a major role in making a purchase decision. And since the purchase of goods in many cases is the result of a collegial discussion, FOS activities are aimed not only at persons who have the right to make a purchase decision, but also at those who in one way or another influence this decision.

The main objective of FOS activities is to introduce new market goods to the market, ensure initial sales and gain a certain market share.

The activities of advertisers are subordinated to the goals and objectives of the enterprise’s marketing, and serve as a tool for ensuring successful trade and forming a permanent clientele for the enterprise. In this case, specific forms of FOS activities can be:

- introduction into the minds of potential customers of information about the availability of a new product (announcement);
- a story about the specific properties of a product that distinguish it favorably from other products of the same purpose;
- a story-evidence about the practical use of this product and the resulting socio-economic effect;
- proof of the high quality of the product based on reviews of prestigious consumers of this product;
- offering non-trivial ways to use this product;
- a report on product testing by an independent expert firm.

FOS activities include: preparation and placement of advertising messages in the press; participation in exhibitions and fairs; free transfer of samples for temporary use or testing; publication of non-commercial articles in the industry and general press; holding press conferences, etc. .

Sales promotion activities (STIS) are addressed to the buyer who has already become familiar with the consumer properties of the product through personal experience. The task of STIs is to encourage subsequent purchases of this product, the acquisition of large quantities, and regular commercial relations with the selling company.

The activities of STIs are especially important when there are many competing products on the market that differ little in their consumer properties; goods are sold through an extensive retail network. Typically, a distinction is made between STIs activities aimed at buyers and sellers (intermediaries, agents, dealers.

STI in relation to buyers is to offer tangible commercial benefits to those who purchase goods on agreed terms. This benefit is provided, for example, by discounts for the volume of the purchased batch of goods, the regularity of purchases of a certain number of products (“bonus discounts”). They also use credit in its various forms (installment plans, no down payment, even a “gift” of a certain amount of money when purchasing a product), free distribution of goods in anticipation of the purchase of a large batch, free transfer of goods for temporary use, “for trial”, acceptance of supported products as a down payment for a new item. STIs events include presentations (shows) of new products specifically for representatives of potential buyers (if we are talking about products for industrial purposes), excursions to manufacturing enterprises, press conferences on the occasion of the introduction of powerful STI shares to the market, a sharp reduction in price (usually in connection with the transition to the release of a new product model, the beginning of the next season, etc.). It is widely announced through the media - print, radio, television.

STIs in relation to sellers - staff of stores, showrooms, etc. - usually aimed at achieving high sales figures for these people. Incentives may consist not only of monetary rewards, but also of additional vacation days, recreational trips at the expense of the company, and valuable gifts.

So, FOSSTIS events are necessary because without them it is difficult, if not impossible, to build successful commercial work in the market. It is no coincidence that some companies spend up to 15% of their revenue on FOSSTIS.

What could be more difficult than working with consumers? Probably only backbreaking physical labor can compare with this. But that’s not what we’re talking about now. Forming demand and stimulating sales is a long and responsible process that requires careful preliminary preparation. This is what we will talk about today.

What is the basis for selling the product?

Demand generation and sales promotion are not only a set of automatic processes, but also activities that include the human factor. Before presenting a product, advertisers must study it thoroughly to be sure that it can satisfy the needs of the buyer, and is also reliable, competitive and safe.

If the product, in addition, is new, popular and affordable, then creating demand and stimulating sales will be somewhat easier. As you know, regardless of profession, education and ethnicity, when making a purchase, people are driven by only three types of motivation:

Rational motivation. A person considers a product in terms of price-quality ratio.
Moral motivation. A person’s choice is influenced by the traditions established in society. For example, a person who works in an office will not buy jeans for work.
Emotional motivation. For most people, not only the quality of the product is important, but its brand, which will emphasize social status.

When generating demand and stimulating sales, you first need to pay attention to these points.

Promotion

After a person realizes that he needs to buy something, he begins to look for information about the product. It is usually presented in the form of means of creating demand and stimulating the sale of goods. They, in turn, are created specifically to attract the attention of consumers.

The tool in this case is such a concept as promotion. This is the communication of information about a product in any form that will attract attention. The following are considered important promotion functions:

Creating a prestigious image with a low price and novelty of the product.
Providing complete information about the properties and qualities of the product.
Maintaining the popularity of the product.
Changing the way the product is used.
Creating enthusiasm.
Convincing the consumer of the need to purchase.

To create in the buyer a consumer need and desire to purchase a product, various types of promotion are used in marketing:

Advertising. Most often, they use the media to distribute it or directly contact a potential buyer by mail.
Publicity. This term implies a non-personal appeal to the audience. The company usually does not pay for such a message, unlike advertising in the media. Typically, publicity refers to a comment that an editor writes in the press about a product.
Sales promotion. This includes various types of marketing activities that encourage the buyer to make a purchase. Unlike advertising and publicity, which are designed to spread information about a product, sales promotion is focused on hot sales.
Personal selling. This method of generating demand and stimulating sales has been a leader for a long time. Initially, as soon as the marketing industry began to take shape, personal communications between the seller and the buyer with the aim of persuading them to purchase a product were the basis of successful sales.

If we combine all types of promotion and sales, we can say that these processes are complex measures to generate demand and stimulate sales. Every entrepreneur needs to know them in order to increase their own sales.

Briefly about the system

If we talk about the system of generating demand and stimulating the sale of goods, then all efforts are aimed at finding solvent groups of consumers and drawing their attention to the product in order to satisfy their purchasing needs. At this time, specialists are trying to solve the problem of choosing between “their” product and competitors’ products. Of course, if the buyer is well informed, he will certainly choose the product about which he knows better.

Thus, it can be said that demand generation activities have a communication and commercial effect.

Effects

What is the communication effect? During the survey, the consumer easily perceives the name of the company, brand, brand, etc. When it's time to buy, he easily distinguishes these points from other goods.

The second, commercial effect, can be observed when the customer has an intention to purchase a specific product. This effect occurs only in 13-15% of respondents.

The processes of creating demand and stimulating product sales in different market segments differ from each other. In addition, the marketer needs to take into account the behavioral characteristics of consumers, taking into account the product life cycle and the amount of forecast demand. Demand generation and sales promotion activities do not end there.

Estimate

It is important to pay attention to the company that is promoting the product. Particular care should be taken to monitor the volume and sequence of use of promotional means. Activities to generate demand and sales do not have to be expensive. The ratio of advertising costs and related processes may look like this:

Development and promotion of a trademark - 17% of the total budget.
Holding exhibitions and presentations - 19%.
Advertising by mail - 12%.
Providing services to a potential buyer - 13%.
Prizes, discounts, incentives, souvenirs, lotteries - 23%.
Net promotional products - 12%
Meetings and other meetings - 4%.

When carrying out these actions, it is worth remembering that in marketing, demand generation and sales promotion should be focused on attracting buyers to their ranks for many years. There may not be an immediate result, but you shouldn’t count on it.

FOS and STIs block

The system of demand formation and sales promotion consists of two blocks. These are, respectively, measures to create demand and stimulate sales.

Their main purpose is to inform potential buyers about the existence of a product. In addition, attention is drawn to the needs that a particular product can satisfy. The consumer is also provided with evidence of the quality of the products. It is the correctly selected evidence that gives buyers confidence in the product, and in turn, the level of sales increases.

The main objective of demand generation activities is to gain a certain market share for a product. This process should be implemented at the initial stage, as soon as the product begins to enter the market. In general, purchasing decisions are subject to careful discussion or thought, so all demand generation activities should have a targeted impact on everyone who may be involved in the decision.

Activities that help generate demand usually include:

Advertising.
Exhibitions.
Trade fairs.
Public relations.

Sales promotion

As for the sales formation policy, it should evoke in the consumer a strong preference for a particular brand and a desire to make a repeat purchase. Simply put, the main objective of such events is to encourage the consumer to make subsequent, repeated purchases of a product of a certain brand, purchase large quantities of goods and establish commercial relationships with the manufacturer.

In conditions of high competition and an oversupply of goods on the market, sales promotion activities are of particular importance. In general, these processes are divided into 2 large groups, depending on the object that needs to be influenced.

The first group includes activities aimed directly at the buyer. They create an image of a commercial offer with tangible benefits. For example, there are discounts at distribution points. Or a person can take out a loan for a favorite product. You can also find events such as:

Free distribution of trial products.
Acceptance, exchange or repair of used goods.
Presentation.
Tours of the company.
Press conferences.
PR campaigns.

These events are widely known in the media, as they are constantly talked about.

The second group includes those processes that affect intermediaries and force them to sell with much more energy. Intermediaries are much more active in expanding and strengthening target segments. Such events include:

Providing equipment necessary for sale.
Equipment for workshops, utility rooms and sales points.
Providing discounts and sales prices (sellers have the right to increase and keep the difference).
Cash bonuses.
Additional days off or time off.
Gifts are moral encouragement.

PR and advertising

Demand generation and sales promotion policies are based on a wide variety of means and activities. But advertising and PR are in greater demand and popularity. With their help, the manufacturer solves the following problems:

Provides management of the organization with information about what the public thinks about it.
Develops response measures to influence the opinion of society.
Directs the activities of the company's management so that they occur in the interests of the public.
Maintains a state of readiness for change, anticipating the development of possible trends in advance.
Uses research and open communication as its main means of activity.

Simply put, PR helps build mutual understanding between the public and the company. Such events help to form a positive public opinion about the brand, product and image of the company.

Distribution of goods

An important role in the formation of demand and sales of goods is played by their correct distribution, that is, activities regarding the planning and physical movement of goods from the company to the buyer. It is carried out by distribution channels, and their members perform a number of important functions:

Research work. Collect information necessary to facilitate the exchange.
Sales promotion. Creation and mass distribution of information about the product.
Establishing connections with potential buyers.
Customization of products to consumer needs.
Negotiation of prices for further transfer of goods.
Transportation and storage of sales products.
Search for funds that cover the costs of operating the distribution channel.

The first five functions are aimed at concluding deals, the rest help to complete them.

Each product distribution channel consists of several levels. They usually mean intermediaries who perform a certain type of activity. Each of these activities is aimed at bringing the product closer to its final buyer. Since both the manufacturer and the buyer himself perform certain work, they are also components of the distribution channel. Its length directly depends on the number of intermediate levels.

Trade turnover

Another important term in the process of forming demand and sales is product distribution. This means a complex activity that includes all operations related to the transportation of products from the manufacturer to the buyer.

The product distribution procedure consists of several elements: warehouse processing of products and their sorting, packaging, transportation, delivery and sales.

When choosing a location and distribution channel, the following factors should be considered:

Number of consumers in the distribution center and average purchase size. Locations of stores, opening hours, the need for sales personnel and lending conditions.
Do not forget about the interests of the company. Thus, it is necessary to provide the ability to control profits and employee performance. Organize delivery and implementation process.
As for the product, you need to determine the cost per unit of the product. Take into account the complexity of storage, frequency of shipments, weight, etc.
Don't forget about your competitors. You need to know their quantity and the range of products presented. Understand the turnover methods they use, means of promotion and distribution channels.
Product distribution channels. Their number, functions performed, availability, legal aspects and location.

conclusions

Thus, demand generation and sales promotion can be considered a complex and multifunctional process.

You could say it's a circular process. Initially, the manufacturer, through surveys and marketing research, determines what needs customers have and creates products that fully meet these needs. Afterwards, research is conducted again regarding consumer preferences, and the finished product is adjusted to meet expectations. Then information about the new product goes to various media outlets, and the manufacturer orders advertising campaigns. Establishes communication channels with distribution companies and supplies them with the finished product. Distributors sell the product to potential buyers, and after some time the company conducts market research again to find out how buyers feel about the product.

Along the way, the accompanying needs of customers are determined, and the product goes through a modification process. The potential buyer is informed that the product can solve his problems, thus creating demand. And where the demand is most clearly expressed, the company creates points of sale of the goods, that is, it creates sales points. This is the whole procedure for creating supply and demand, if we talk about it in a nutshell.

The “Promotion” element of the marketing mix serves as a tool for generating demand and stimulating sales in the marketing system.

Promotion is any form of communication to inform, persuade, remind about goods, services, social activities, ideas, etc.

The most important promotion functions:

· - creating an image of prestige, low prices, innovation;
· - information about the product, its quality and properties;
· - maintaining the popularity of products;
· - change in the way the product is used;
· - creating enthusiasm among sales participants;
· - persuading buyers to switch to more expensive goods;
· - answers to consumer questions;
· - providing favorable information about the enterprise.

Main types of promotion:

1. Advertising is associated either with the use of mass media - newspapers, magazines, radio, television and others (for example, billboards), or with direct contact with the buyer using mail. Both types of advertising are paid for by the advertiser, but are considered impersonal because the firm is simultaneously addressing numerous recipients, perhaps millions, rather than speaking to one individual or small group.
2. Publicity is a non-personal appeal to a mass audience, for which, unlike advertising, the company does not pay for the message. Publicity is usually the reporting of news or editorial commentary in the press about a company's products or services. 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 an element of the communication complex, and publicity was included in its composition.
3. 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 achieve other goals, in this case such as bringing information to the consumer about a new brand and influencing the consumer's attitude towards it.
4. Personal selling is personal communication in which the seller tries to convince potential buyers of the need to purchase the company's products or services.

The combination of these promotion elements is called a promotion complex.

The main goals of promotion: creating and stimulating demand in the short and long term, improving the image of the enterprise. Specific promotion actions depend on the so-called impact hierarchy. (Table 1)

Table 1. Hierarchy of promotion impact

Of all the factors affecting demand (social, economic, demographic and others), we can only really influence consumer preferences.

The concept of “consumer preferences” (hereinafter referred to as PP) is actively used in applied marketing research. But in science it appears only indirectly. It is believed that it is most effective to influence preferences (that is, positively color attitudes towards a product), rather than choice. If a person prefers a product (before or regardless of purchase), then he will most likely choose it. Accordingly, it is better to direct all information flows to preference (attitude) rather than to purchase and use (behavior). Unfortunately, in Russian advertising sometimes this is done exactly the opposite.

Some believe that preference changes are not limited to phenomena such as addiction, advertising, etc. Rather, for any product, the consumer has a level of aspiration towards the product. The consumer's preference will also change once the aspiration level is adjusted.

Some scientists point out that the shift in our preferences can be much better explained in terms of image than practicality. Despite the fact that consumers verbalize their choice by saying that they bought, for example, a car because of its practicality, in fact, and this has been proven, all our preferences come from image. In addition, the fulfillment of our desires by a product is the second condition of PP after the image of this product. The massive shift in tastes is due to advertising, imitation, contamination and fashion.

What we call advertising today has turned from the process of conveying information from the advertiser to the target audience through media channels or other means into the process of forming the desired image in the consumer, often having a certain artistic and dramatic part. Of course, not all advertisements that we see have reached this level; we still see a listing of the positive properties and convenience of a particular product (especially on regional TV), but such large brands as Coca-Cola, Mercedes or BMW no longer even include they talk about the taste or technical parameters of their product, they simply create the desired image in your head and, naturally, this image is verified with special care.

But besides the abstract formation of consumer preferences, of course, there are simpler and more down-to-earth ways to sell a product.

Sales promotion is a set of measures whose main goal is to increase sales volume and turn a potential buyer into a real one. These measures are aimed at both the final consumer and the intermediate consumer (retail outlets).

The specific objectives of using various sales promotion techniques depend on whether they are aimed at the final consumer of the product or at the intermediate consumer - sales representatives and sales managers. In the first case, sales promotion is carried out with the aim of:

* increasing the number of buyers;
* increasing the number of goods purchased by one buyer.

Incentivizing sellers is no less important. The main purpose of the methods used is:

* increasing the seller’s interest in promoting the product (Sales representatives in “Carousel”)
* increasing the quantity and range of goods supplied to one retail outlet;
* introducing new products for sale through the retail network.

Sales promotion means from the point of view of their “profitability” for the manufacturer are divided into “hard” and “soft”. The “hard” ones include:

Price promotion: discounts, sales, preferential coupons (Eldorado and their numerous promotions, discounts and discount coupons), etc.;

Incentives in kind: issuance of additional goods subject to a purchase, issuance of samples of goods (Verkhnevolzhskaya poultry farm - tasting of new products).

Such promotions are usually carried out in a short time frame. They are very effective, but require certain costs from the manufacturer.

“Soft” means include active game stimulation: competitions, lotteries, games. (This is often used when selling low-alcohol drinks)

These types of sales promotion can be carried out by both the manufacturer and the dealer.

Individual incentives, as a rule, are provided only by the manufacturer in places where the product is displayed. It consists of a special design of the product, for which it is used: a bright original packaging design, which may contain a message about a discount, bonus, prizes, competition, combination of goods “2-in-1”, etc. (Also often seen in our shopping centers, carousel, Tver merchant, etc.)

Price promotions are very effective since most buyers are receptive to discounts and various promotions. Products with temporarily reduced prices sell out faster. When using this method, it is important to emphasize the temporary nature of the price reduction and justify it (company birthday, seasonal discounts, etc.) As a rule, for such types of incentives special price tags are used, on which the real price is crossed out and the discounted price is positioned. However, price reductions should not last too long and be carried out too often, otherwise distrust of the goods will arise.

There are the following types of price incentives:

* direct price reductions (for example, “product of the week”, this is often indicated in special advertising brochures distributed throughout the city);
* distribution of coupons giving the right to purchase at a discount; (Currently held at Dixie)
* price reduction with a delay in receiving a discount. (Point accumulation system, like in Eldorado)

In-kind incentives, unlike price incentives, do not lead to saving the buyer money, but make it possible to introduce the client to the product, provide him with samples, and establish substantive contacts between the consumer and the manufacturer.

A striking example of in-kind sales promotion is the sale of small toys along with candy for children, the donation of a cookbook along with the sale of a stove, microwave oven or convection oven, etc. A gift or product sample must be thematically related to the product being sold and must complement it.

Providing product samples is a frequently used type of sales promotion. In some cases, it takes the form of a temporary free right to use a product (usually an expensive one), for example, a typewriter, a vacuum cleaner, or a car (test drive). The purpose of this method is to enable the buyer to be convinced of the quality of the product and its advantages in order to initiate a purchase. This type of sales promotion promotes rapid consumer acceptance of the product, but is associated with significant costs on the part of the manufacturer.

Distribution of samples can be done directly at the point of sale by promoters. Samples can be sent by mail. Mailing ensures high selectivity and targeting to a predetermined circle of consumers. Some types of samples (cosmetics, perfumes, stationery) are distributed through the relevant press.

Sales promotion at point of sale level

Today in marketing much attention is paid to the relationship between the manufacturer and retail outlets. Intermediaries between companies producing a product and buyers of this product play an important role in stimulating sales. The interest of sellers in promoting products helps to increase production profitability. Therefore, special incentive techniques have been developed for sales representatives, salespeople and sales managers:

* financial benefits (discounts on goods, bonuses in the form of additional quantities of goods, etc.); cash bonuses to sales managers for fulfilling the set plan for selling goods;
* competitions between various retail outlets;
* intangible gifts subject to the fulfillment of the sales plan.

The manufacturer can offer the management of retail outlets various schemes for mutually beneficial cooperation, including the organization of joint advertising. Today, two-stage marketing is becoming very popular, when dealers and the entire sales network are involved in promoting a product on the market and in advertising campaigns. With this approach, all links in the trade chain are connected by a single concept of product promotion, which gives tangible results.