According to foreign scientists, products from producer to consumer are the way that can be represented by the following formula:
Product + distribution + research + sales agents + movement + advertising = sales
Product advertising plays a leading role in the formation of consumer demand, and advertising itself is one of the main elements of the market economy and non-price competition. Advertising in various forms helps to achieve the main goal by encouraging consumers to continue to use the product and test it in a new application, as well as by encouraging those who do not use it to buy it. When the company has produced a new product, advertising helps it to find and attract new consumers. At the same time, it tries to influence the existing consumer to continue buying the products of the company. Advertising is also able to make up for the loss of consumers due to competition by attracting new ones.
Advertising causes the activity of clients in three ways:
*To encourage direct action - the buyer is asked to come immediately and buy, send the order;
* To encourage indirect action - constantly reminiscent of the brand and encouraging to buy only this product;
*A combination of the two, asking the buyer to take a step in the direction of the purchase, but without requiring it to do so immediately.
There are several main means of advertising: television, radio, newspapers, magazines, and outdoor advertising: signage, stands, showcases, neon advertisements, a special role is played by advertising in the form of packaging. Before you engage in advertising planning, it is necessary to identify the needs of the consumer and his attitude to this product, to assess the level of competition in the market, that is, to conduct marketing research. Modern marketing recommends a comprehensive use of various types and means of advertising. Complexity should ensure the fullest possible coverage of the selected market segment. Each potential consumer should be provided with the necessary information about the purchased product. The efficiency obtained from the sale of goods indicates the optimal saturation of advertising.
Saturation of advertising - the volume of all advertising activities in a given period of time on the selected market sector. The value of this volume is estimated by the cost of advertising activities. Efficiency is determined by the ratio of the volume of product sales (the total volume of requests for products to the saturation of promotional activities). Each type of product in a particular market has its optimal saturation, that is, the effectiveness of advertising has its own specific laws. Changes in the volume of product sales (advertising efficiency) is in direct dependence on the saturation and advertising tools used. With insufficient saturation of advertising costs for it grow faster than the efficiency. Funds invested in advertising activities are used most effectively when the saturation of advertising reaches an optimal level. All this indicates that advertising is an integral part of the market process. Thus, the purpose of advertising of the company is that the company hopes to increase its market share and strengthen consumer loyalty in relation to its differentiated product. In terms of special terms, this means that the firm hopes that the advertising will move the demand curve to the right and at the same time reduce its price elasticity.
Basic principles of advertising:
*To interest customers by skillfully using drawings, illustrations and other means of advertising that attract the attention of the customers to whom it is addressed;
*Support their interest by emphasizing the benefits of your offer.
*Ask for wishes or associations that the potential client would identify with his or her benefit;
*Show advantages: the cost does not depend on the low price, but on the best service, high quality, it is important to appeal to the client's self-esteem, to arouse their respective associations;
* Organize (facilitate) the purchase: it is necessary to inform the clients about where and how they can implement specific offers (regarding the product or service);
* Give a signal to action: do not waste time, hurry up, be lucky, i.e. interest customers in the urgent execution of the offer until other things distract them.
Advertising expenses may signal the quality of the product. How trustworthy is this? Why don't firms do the same with low quality products, i.e. don't spend money on advertising and sell products at high prices to consumers who believe they buy high quality products? In other words, is it rational for consumers to behave rationally if they believe that large investments in advertising mean high quality of the advertised product?
A continuation should be made.