Efficiency of development of advertising
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Table of contents
- 1. Theoretical aspects of efficiency of development of advertising activity
- 1.1 The place and the role of advertising activity in marketing system
- 1.2 Development of advertising activity and its value for manufacturers and consumers
- 1.3 The economic indicators characterizing importance of advertising activity
- 2. Research of the advertising campaign of the new goods in open company nataly
- 2.1 The program of investment maintenance of the advertising campaign
- 2.2 The estimation and the analysis of indicators of efficiency of the advertising campaign
- 3. Ways of increase of efficiency of advertising activity to open company nataly
- 3.1 Methods of rational use of possibilities of advertising agencies
- 3.2 Methods of increase of efficiency of advertising activity
- 3.3 Use of methods of optimization in advertising activity
- The conclusion
- The bibliographic list
Now the economy of Russia is in a transition state from planned system to the market. And if earlier the enterprises had not to reflect especially on production sale, the state now in the conditions of the market each enterprise at own risk independently solves was engaged in it what exactly it will make and how to market, what will be thus used means. As in present conditions any businessman can make that considers it necessary also possible the number of manufacturers of similar production becomes very big. And everyone them them to aspire to win the market. It also induces the organisations to undertake the various actions promoting realisation of production. To these actions carry improvement of quality of production and efficiency of advertising activity. Advertising is a significant part of marketing communications and serves as the tool of creation of external competitive advantage. It is impossible to present work of the modern enterprise without advertising activity. The company should declare the existence in the market, about the goods, involve the potential buyer and create an image of the reliable partner. The control system base the modern enterprise is the marketing transforming the purposes of firm in strategy of its behaviour in the market. A visual embodiment in direct continuation of marketing strategy? It also is advertising activity of the enterprise which is turned directly on the consumer and is a basis of a complex of marketing communications. Thus advertising activity, as well as any another, should develop continuously within the limits of strategic planning of the enterprise. As practice shows, frequently planning of advertising activity of the enterprise is conducted without marketing strategy, in a separation from marketing activity of the enterprise. It leads to that publicity expenses increase, and its efficiency decreases. Considering all aforesaid, it is obvious, what a diploma theme? Efficiency of development of advertising activity? It is rather actual. Besides, in the course of performance of degree work recommendations which allow to raise essentially efficiency of advertising activity in modern conditions of managing have been developed. As a whole the advertising efficiency estimation allows to receive the information on expediency of advertising and productivity of its separate means, to define conditions of optimum influence of advertising on potential buyers, to make the decision on change of advertising strategy, flexibly to react to actions of competitors. Especially sharply there is an advertising question at release of the new goods. After all there is a danger that the product will not be accepted by the market. Therefore it is very important in advance even prior to the beginning of manufacture process to find out, whether the market requires a similar product. And later, during an advertising campaign to stimulate sale of production by influence on potential buyers, showing utility of the goods, its best characteristics. In the given work the advertising campaign on advancement of the new goods which is for today is developed faster the goods of industrial appointment, than consumer goods. Owing to what, the emphasis at advertising of these goods is made on the businessmen who are engaged in business (mainly heads). It causes the advertising campaign maintenance (from the channel of placing to the maintenance of the advertising message). Object of researches is the industrial enterprise of Open Company Nataly, engaged in manufacturing of an aluminium profile and products. A subject of researches? Advertising activity of the enterprise. The purpose of degree work is research of an advertising campaign of the new goods in Open Company Nataly and definition of ways of increase of efficiency of advertising activity for the enterprise as a whole. The primary goals of degree work are:
1) research of theoretical aspects of efficiency of development of advertising activity; ordering of a theoretical material according to efficiency of the advertising activity, available in the scientific literature;
2) a substantiation of an advertising campaign of the new goods in Open Company Nataly, including: planning, investment maintenance and an estimation quantitative and quality indicators of efficiency of an advertising campaign;
3) definition of ways of increase of efficiency of advertising activity in Open Company Nataly.
Structurally work is presented by three heads. In chapter 1 of degree work the theoretical material on research of efficiency of development of advertising activity is presented and systematised. Here the place and a role of advertising activity in marketing system, development of advertising activity and its value for manufacturers and consumers are considered. And also the economic indicators, characterising the important advertising activity are resulted. In the second chapter of work research of an advertising campaign of the new goods is carried out Open Company Nataly in which its planning and a substantiation of investment maintenance is carried out. Here the estimation quantitative and quality indicators of efficiency of an advertising campaign is made. In the final, third chapter of work ways of increase of efficiency of advertising activity to Open Company are defined Nataly.
In particular methods of rational use of possibilities of advertising agencies, methods of increase of efficiency of advertising activity are considered, and also optimisation methods in advertising activity are considered.
1. Theoretical aspects of efficiency of development of advertising activity
1.1 The place and the role of advertising activity in marketing system
Last years the attention has increased in Russia to advertising. This results from the fact that economic conditions have changed, and absence of accurate planning has forced the enterprises to depart from habitual stereotypes in business relations and to search for new nonconventional ways of attraction of attention to itself, the activity from outside consumers. Skilfully made advertising allows to overcome faster barriers between the manufacturer and the consumer. The manufacturer is the advertiser. And the consumer? This on whom the advertising message on purpose is directed to induce it to make certain action in which the advertiser is interested. The product does not become the goods while it will not sell. That it has occurred, the consumer is necessary for interesting and preparing for purchase fulfilment, to give it the sufficient information which would induce it to action. This role is carried out by advertising. Besides, in the conditions of saturation of the market by the goods advertising acts as struggle means between competitors for the share of the market, as a way of formation of demand, its developments, deduction or expansion of a share of the market, maintenance of effective work of the enterprise [3, с. 142]. There are many definitions of the advertising which essence depends on the approach to the given concept. Advertising? The paid form of representation and advancement of the goods and services with accurately specified source of financing [3, с. 142]. Advertising? The impersonal forms of communications which are carried out by means of paid means of distribution of the information, with accurately specified source of financing [13, с. 473]. Advertising? Attention attraction to the goods, service of the concrete manufacturer, the dealer, the intermediary and the distributor at their expense and under their mark of offers, appeals, councils, recommendations to buy these goods or services [30, with. 331]. In the Federal law «About advertising» following definition of advertising activity is made. Advertising? Specific area of a mass communication in the conditions of a market competition between advertisers and various audiences for the purpose of active influence on these audiences which should promote the decision of certain marketing problems of the advertiser. It is a component of marketing communications [17, с. 22]. Hence, an advertising subject? It that is advertised, and a vehicle for advertising — a channel of information on which the advertising message reaches consumers. Thus the system of marketing communications is the uniform complex uniting participants of advertising, channels and the communications receptions, directed on an establishment and maintenance of the mutual relations planned by the given organisation with addressees within the limits of achievement of the marketing purposes (fig.1.1 see) [22, s. 11−12]. Advertising is only a part of advancement of the goods at which the firm can carry out contacts to the consumer through the trading personnel (direct sales), popularisation or public relations, and also to use various receptions of stimulation of sale. Advertising as a communication medium allows to transfer the message to potential buyers direct contact with which is not established. Therefore advertising is the cash form of communications. But there is also a direct marketing which includes a direct mail advertising (direct a mail), telemarketing, advertising of the direct response (direct response) on TV, radio, in other mass-media. This kind of marketing communications apply, when the advertising message is aimed at generation of reciprocal action. Direct marketing has two basic advantages, distinguishing it from usual mass advertising:
1) possibility of the individual reference to the concrete consumer with offer specially prepared for it;
2) direct registration of its answer.
The role of advertising activity reveals in its functions [18, с. 33]:
1. Economic function. Advertising stimulates sale of the goods and promotes growth of profit of the enterprise.
2. Information function. Advertising forms an information field about the goods, services, their basic characteristics and features. About the new goods consumers learn mainly from advertising messages.
3. communicative function. Advertising creates image of commodity producers, forming activity of consumers to the certain goods (services).
4. Supervising function. Advertising supervises processes of creation of preferences of groups of consumers to the goods of regular assortment.
5. Correcting function. Advertising changes stereotypes of perception of these or those goods.
6. Demand management function. The volume of the advertising information and a drawing of its giving can change demand in the necessary direction. The essence of advertising consists in the following its basic functions and properties: the impersonal form of communications; It is characterised by uncertainty of target audience; creates an information field about the goods and services and promotes observance of interests of the advertiser. Advertising acts as one of levers in a complex of marketing communications (fig.1. 2) [18, с. 44].
Advertising is a specific kind of communications. It is possible to allocate three its basic distinctive features:
1) advertising always has a unilateral orientation: from the seller to the buyer;
2) the result of advertising is not defined, as the feedback from buyers practically is absent;
3) the result of advertising communications comes not at once, and after certain time.
Thus, advertising has public character, promotes distribution of the information on the goods and services, is depersonalized and экспрессивна. It not only the tool, but also considerable sector of economy. Economic function is reduced basically to informing of the consumer on the goods or services, their popularisation, demand and goods turnover increase. Advertising itself is business sphere where are occupied hundred thousand professional experts, and brings in the big incomes to the manufacturers. Advertising? A source of economic well-being of commercial mass media. It provides with it financial support and mutually advantageous communications with trade and economic and other spheres of a public life. Advertising develops economy, influences increase of a standard of living of people and promotes effectiveness of a market mechanism.
1.2 Development of advertising activity and its value for manufacturers and consumers
The commodity market formed in Russia and services all demands attraction and advertising use more persistently. Its roots leave in deep olden time and are connected by that manufacturers always needed to inform people on the goods sold by them, about spent fairs [25, с. 4].
Except informative function, advertising acts and as the communications form between sphere of the reference and manufacture sphere as formation of new requirements of the buyers, stimulated advertising, gives a new impulse to manufacture, defines directions and rates of its development. That is, advertising will organise dialogue between manufacture and consumption. It finds the expression in orientation of manufacture to the market [25, с. 11].
For 550 years advertising has passed a way of development from the labour-consuming print advertising (publishing) limited to region, before interactive global advertising. The first handbill has appeared in 1472, printed by William Kokstonom and containing the information on prayer book sale. The first weekly newspaper has started to be published in Strasbourg in 1609. In 1920 the first commercial radio station KDKA in Pittsburgh, the State of Pennsylvania starts to work. Now advertising is applied not only in trade, but also such spheres of a public life, as: the finance (for advertising of services), a policy (persons, parties, the unions), religion (spiritual culture), ecology (at occurrence of any natural and social situations), culture (persons, events), a science (workings out, technologies, innovations), services (medicine, tourism, etc).
From this it is possible to draw a conclusion that advertising is the special form of communications. It realises the most general problems, such, for example, how to inform on events and the facts of a public life, to develop contacts between people, to operate dialogue process. Besides it, advertising solves also the private problems: creates the set images, convinces the consumer of necessity and possibilities to get these or those goods, forms at it desire to buy the advertised goods, unostentatiously and effectively, thereby turning to the tool of the organisation of sale of production of the enterprises and the organisations.
As communication channels between the advertiser and consumers various audiovisual means which represent advertising media act. Advertising media classify on the basic and additional. All mass media and the outdoor advertising concern the basic means.
Advertising in (newspaper) press possesses such advantages, as: timeliness, frequent periodicity, the big coverage of the local market. She allows to make changes to an advertising appeal operatively. At the same time it has such lacks, as: short duration of existence, poor quality of reproduction, a small audience? The secondary? Readers, thus advertising of one firm is in a direct environment of advertising of competitors. Advertising on TV unlike advertising in newspapers possesses high degree of attraction of attention at the expense of a combination of the image, a sound, movement. However it has high cost, fugacity of advertising contact, thus perception of the information of an advertising appeal is imposed on irritation from an advertising overabundance on TV. Radio is presented only by sound means, advertising contact thus also is very short on time. However at the given advertising medium coverage of an audience and smaller cost. Unlike advertising in newspapers, advertising in magazines has sharp selectivity, prestigiousness, better quality of reproduction and the big coverage of a secondary audience.
Also advertising here differs duration of existence. At the same time at the advertising publication in magazine there can be a big rupture in time between representation of materials in edition and its exit to the public, i. e. effect? Advertising obsolescence?. The outdoor advertising has powerful emotional influence, high frequency of repeated contacts, however at its application there is no selectivity of an audience.
Exhibitions and fairs thus that demand heavy expenses and preliminary preparation of stands, give the chance personal contacts to consumers and partners, and also possibility to show the goods in operation.
But what advertising medium would not be chosen, it is necessary to note following general negative aspects of advertising [18, с. 20]:
1) the advertising message is standard, nonflexible, limited in time (advertising on radio, TV) and on the area (advertising in newspapers and magazines);
2) in the advertising message there is no possibility to emphasise individual requirements of the client;
3) the advertising message often is in an environment of advertising of competitors;
4) all kinds of advertising demand the big investments;
5) advertising lays down heavy burden on consumers, increasing the prices for the goods and services;
6) quotations from year to year increase by advertising placing in a press that leads to reduction of the advertising areas and advertising efficiency decrease;
7) advertising causes irritation that too often interrupts translation of telecasts. Nevertheless, at all its lacks, advertising helps to achieve decrease in time spent by trading workers on purchase and sale of the goods, partially releases them from personal participation in advancement of the advertised goods that also conducts to decrease in distribution costs. [19, с. 91].
Advertising promotes constant perfection of let out production. It use as the competition tool. Without advertising there is no possibility actively to influence the market, to fix the position on it [25, с. 12]. Advertising as the communication medium, gives the chance large attendance attraction, thus to use the various mass media most suitable to the chosen target segment of the market. Thus it is possible to supervise the maintenance of advertising messages, its registration and exit time, to correct or change the message depending on reaction of a target segment. Advertising creates additional workplaces for managers, designers, artists, experts. Besides, advertising positively influences a consumer society as a whole, forming a powerful information field about the new goods and services.
There are the aspects explaining the negative relation to advertising:
1. russia it is not generated the positive relation to commercial activity. In consciousness of many people business Fraud.
2. Advertising is directed till now on the limited circle of people? An average? The consumer is left indifferent by messages on computers, cars, trips abroad. The reason — in low level of incomes.
3. An insufficient social orientation of advertisements at which there is a problem of protection of environment, love, sports.
4. Many announcements are given a little reason, persuasive and do not represent the facts.
5. Preview trailers are inexpressive, suffer bad aesthetic taste, in them there are no elements of a corporate style of the enterprise.
Advertising is favourable to any enterprise And, many cases when the manufacturer of advertising specially gave negative advertising by means of which became known almost more than those who used only an advertising positive side are known. Nevertheless, the author considers, what finally similar advertising does not bring advantage to anybody?
To the manufacturer as on subconsciousness there is an opinion on its firm as about something pushing away; to the consumer, owing to that after similar advertising there is an unpleasant deposit. With assistance of advertising the market becomes clearer and accessible to buyers with different tastes and requirements, with different level of monetary incomes, with unequal traditions concerning consumption. Carrying out contacts to the consumer, the advertising message at first forms awareness at the person — the consumer remembers mark. The positive relation to the goods is then formed, that is the consumer remembers the goods as one of the best in the given category.
The next portion of contacts moves it to the first purchase [9, s. 20−22]. Unfortunately, not any advertising is perceived positively and consequently not any goods are got. But advertising is necessary for the consumer, as about existence of many goods we never would learn, if not advertising activity of manufacturers. That is advertising is necessary to all: and that who advertises the goods, wishing it to advance, and that who looks advertising and thus receives the information on the goods.
Advertising not only the tool, but also considerable sector of economy. Advertising itself is business sphere where are occupied hundred thousand professional experts, and brings in the big incomes to the manufacturers. Advertising? A source of economic well-being of commercial mass media. It provides with it financial support and mutually advantageous communications with trade and economic and other spheres of a public life. Thus, advertising develops economy, influences increase of a standard of living of people and promotes competition development.
1.3 The economic indicators characterizing importance of advertising activity
Expenses on advertising? A powerful part of the budget of foreign industrial firms. They show the tendency of development of advertising activity. In the USA on advertising in mass media 5% from total expenses on manufacture and realisation of the goods leave approximately. At manufacturers of consumer goods this share still above: medicines? 20%; spirits, cosmetics? 13,8%; kitchen accessories? 12,8%; spirits? 11,9% and so on [30, с. 332].
According to the Russian legislation expenses on advertising include following positions [15, s. 13−23]:? On working out, manufacturing and distribution of ad publications;? On working out, manufacturing and distribution of sketches, labels, samples of original and firm packages, packings, acquisition, manufacturing and distribution of advertising souvenirs, samples;? On publicity through mass media;? On illuminated signs;? Manufacturing of stands, models, publicity boards, indexes;? Storage and экспедирование advertising materials;? Participation in exhibitions, fairs, window dressing;? On уценку the goods which in full or in part have lost the quality at exhibiting in show-windows. Expenses join in the actual cost price of production in full. The limiting sizes of expenses on advertising are estimated according to the rates from goods turnover volume, including the value-added tax. The account of expenses on advertising helps to estimate productivity of advertising activity of the enterprise.
The general estimate of expenses for carrying out of marketing researches of the market and carrying out of the advertising company includes the following articles [1, с. 86]:
cost of marketing researches;
cost of working out of a page in the Internet;
cost information not advertising article; - cost of placing of advertising messages in mass media.
Absolutely precisely to define efficiency of separate advertising media, in most cases it is not obviously possible to an advertising campaign. There are two approaches to an estimation of efficiency of advertising activity of the enterprise [28, с. 41]: and #61 607; quantitative (economic efficiency) which shows degree of increase in sales volumes under the influence of advertising; and #61 607; qualitative (efficiency of psychological influence) which allows to estimate degree of popularity, trust and adherence of consumers to the goods or the company. In practice use both quantitative, and qualitative approaches which allow to obtain the objective given estimations of advertising activity of the enterprise. Experts define also some kinds of an advertising efficiency, to be exact social, psychological and economic efficiency [19, с. 118].
Social efficiency is defined by degree of satisfaction of inquiries and needs of consumers, its ability to formulate certain skills, requirements, tastes to raise the general level of culture, culture of a life, a food. Psychological influence of advertising is shown in change of public opinion concerning any subject, the phenomenon, concept. To define the given influence it is possible only by means of supervision, interrogation or experiment. Economic efficiency of advertising is estimated on degree of its influence on goods turnover volume. It shows additional profit as a result of advertising influence. There is no uniform approach to advertising efficiency definition. The most simple way? This comparison of goods turnover before advertising campaign carrying out. Thus compare goods turnovers for the periods (months, quarters), equal to the period during which the goods [19, с. 118] were advertised. Some experts offer methods of an estimation of economic efficiency of advertising. Following methods concern them [23, с. 402]:
2)? Hiding places?, which consists that the present advertisements from which marks, names of firms-manufacturers are withdrawn are used; the interrogated should specify goods mark, having read the announcement text.
Besides, there are also other methods of definition of efficiency of advertisements. To them carry:
1) a method of supervision, experiment (is applied on the published announcement the coupon which it is required to fill and send to the specified address, or the coupon at which presentation at goods purchase, the discount is given; by calculation of the sent or shown coupons it is defined, сколькими the given announcement has been noticed by people),
2) an interrogation or questioning method. Economic efficiency is better to judge by result which has been reached by means of advertising.
The economic result is defined by a parity between profit on the additional goods turnover received under the influence of advertising, and expenses on it. In this case from carrying out of publicity the effect is compared with expenses for its realisation.
Following variants are possible: — the effect from publicity is equal to expenses for its carrying out; - the effect from publicity is more than expenses; - the effect from publicity is less than expenses. However still it is not enough received data for comparison of economic efficiency of expenses for carrying out of various publicity. More precisely efficiency of publicity expenses characterises its profitability. Profitability? This relation of the received profit to expenses (in percentage).
In the present work we will consider that the concept of an advertising efficiency comprises two components: communicative and economic efficiency. communicative efficiency concerns quality indicators of an estimation of efficiency of advertising activity, economic efficiency? To quantity indicators. Such indicators concern quantity indicators, as an advertising rating, a share of coverage of a potential audience also.
Efficiency of psychological influence of advertising means is characterised by number of coverage of consumers, brightness and depth of the impression, which these means leave in memory of the person, degree of attraction of attention. For definition of degree of attraction of attention of consumers to advertising the number of the people who have paid attention to advertising is necessary and remembered it during the certain period to divide into total number of people which have seen advertising during this period. In mass media it is possible to estimate degree of effectiveness of the publication of advertisements with some degree of convention, having divided number of purchases during the defined period of time for total of visitors during the defined period of time.
That it is correct to estimate efficiency of the created advertising, it is necessary to spend accurately border between the communication and commercial (trading) purposes of firm (fig.1. 6). Advertising as it was marked earlier, is aimed not only at achievement of competitive advantages (a share of the market, profit, a sales volume), but on achievement of certain results of communications with a target segment of the market.
In advertising practice distinguish four cores of an indicator of a communicative advertising efficiency: recognizability; запоминаемость; attractiveness; propaganda force. Recognizability of advertising? It is criterion on which recognition symbols or external attributes of the trade mark are estimated first of all? A trade mark, a logo, the firm name. More highly on this parametre those recognition symbols, which are estimated: demand less time for recognition; are perceived in wider spatial range.
By this criterion are estimated not only recognition symbols, but also the advertisement as a whole memory. One of the basic criteria both communicative, and a trading advertising efficiency. At the heart of use of this criterion the hypothesis formulated by classics of an advertising of R. Rivsom and A. Polittsem and divided by a number of modern writers lies: the person will choose that mark, which name and data about which it has better remembered. This feature of human behaviour of A. Politts (1990) has formulated in the form of a principle? Familiar mark?. He has established that expansion of knowledge of mark increases trust to it and raises its rank of quality in perception of consumers. Even the simple knowledge of the name of mark raises trust to it in comparison with absolutely unfamiliar mark [22, с. 72].
Attractiveness of advertising in many respects depends on togas, how much successfully and in an original way creative decision embodied in a real advertising product. But the creative decision, more truly, its efficiency, it is the most difficult to estimate. The preference of mark seldom is based only on a rationale. That mark which advertising causes emotional participation will be seductive. Propaganda force? It is ability of advertising to force consumer to wish to get the goods. As indicators of propaganda force (on A. Polittsu) the following complex of properties can serve: The subjective importance of a theme, plausibility of the basic statement about the goods, uniqueness of the statement. Not in any advertising possessing propaganda force, all three properties, but presence at least two are presented it is necessary. Thus, it is possible to allocate four basic properties, defining propaganda force of an advertising appeal (properties are presented in decreasing order of the importance): the subjective importance; plausibility; uniqueness; integrity.
The primary goal of an estimation of a communicative advertising efficiency consists in indirectly to predict its influence on sale. And though outright to judge a trading advertising efficiency by its communicative efficiency it is difficult, nevertheless correlation between these concepts exists. The modern advertising and marketing companies aspire to find special formulas (using different combinations of indicators of communicative influence) on which it would be possible to predict a trading advertising efficiency.
The advertising efficiency is expressed in studying of degree of acquaintance of target audience with the information on investigated firm and its goods, and also what about them is known, what image of firm and the goods was generated also what relation to them. To create representation about the goods and firm, and furthermore to generate the good relation to them not always easily. It demands time and certain strategy. Relations in the market? It, first of all, human relations. Advertising allows to form the necessary representations about investigated firm at a wide audience on which basis it is easier to build relations. So, in conclusion of the head we will tell the following.
Now the economy of Russia is in a transition state from planned system to the market. And if earlier the industrial enterprises had not to reflect on production sale, the state now in the conditions of the market each enterprise at own risk independently solves was engaged in it what exactly it will make and how to market, what will be thus used means. As in present conditions any businessman can make that considers it necessary also possible the number of manufacturers of similar production becomes very big. And everyone them them to aspire to win the market. It also induces the organisations to undertake the various actions promoting realisation of production. To these actions carry improvement of quality of production and use of various advertising receptions: appeal of packing, послепродажное service, the offer of the accompanying goods and services.
It is necessary to approach to research and an estimation of efficiency of advertising activity in a complex, thus to use both quantitative, and quality indicators to estimate both trading, and a communicative advertising efficiency. In conclusion of chapter 1 we will draw following conclusions.1. Advertising? It is any paid form of impersonal representation and stimulation of sale of ideas, the goods and services by the certain sponsor.
2. Advertising is the most significant making system of marketing communications which allows the enterprises to achieve long-term competitive advantage, and also serves as the basic tool of positioning of the enterprise in consciousness of a target segment of the market.
3. The essence of advertising consists in an ohm that it hands over by means of mass media the information on consumer properties of the goods for the purpose of creation of demand for it.
4. The advertising purpose consists in systematic influence on mentality of the person to cause in it desire to get the known blessings.
5. Advertising became the integral and active part of a communication complex of marketing. And its level of development defines quality and efficiency advertising-information work the manufacturer and its conformity to new requirements of the world market.
2. Research of the advertising campaign of the new goods in open company nataly
2.1 The program of investment maintenance of the advertising campaign
Let’s consider development of advertising activity in Open Company «Nataly». Assortment of production which is let out by Open Company Nataly, constantly extends. After the formation the enterprise made only an aluminium profile. This profile was a different configuration, that is the assortment of made production was rather wide, nevertheless anything except a profile in manufacture was not. Now only a building profile it is made over two tens names. Later, having risen on feet, the enterprise has decided to expand assortment of production, and, hence, and commodity markets. By this time it let out an aluminium profile not only a different configuration, but also with a different covering. The enterprise at will of the customer makes a profile with the anodized covering, with a polymeric covering or without a covering. Then heads have paid attention that the profile with a polymeric covering can be used as eaves for curtains. Then the enterprise began to let out eaves for curtains. The novelty has involved not only manufacturers of building branch, but also wholesale buyers who got eaves for sale to retail shops. Sometimes in firm the private persons addressed, wishing to get eaves for a private use. Such expansion of assortment of production has helped firm to enter the market of the private consumer. Though still the basic share in gain volume occupied and wholesale consumers, owners of various manufactures occupy. Then from this an aluminium profile began to collect the trading-exhibition equipment. It did different colour at will of the customer and a different configuration. Now Open Company Nataly. Makes for shops counters, racks, show-windows. Considering that recently there is a set of small little shops and shops where a variety of the goods demands use of the trading equipment of a various configuration, the sizes and colours, Open Company «Nataly» firm has been compelled to develop set of kinds of an aluminium profile for manufacturing from it the necessary equipment. Further the enterprise assortment has extended at the expense of manufacture of office partitions and aluminium doors. It has allowed to win one more segment of the market? Small private businessmen whom, beginning the enterprise activity, the offices aspire to equip. For today firm Nataly. Makes the certificated aluminium profile for trading, trading-exhibition and a refrigerating machinery; a building profile for stained-glass windows, doors, office partitions, facing; profiles for manufacturing protective, eaves for curtains and vertical jalousie; For manufacturing of cases-compartments, a special purpose profile. Recently the company has developed special designs of a profile for manufacturing of balcony and sliding). Besides the company makes installation of the finished articles executed at the enterprise. Aluminium windows became the next novelty. To prove an advertising campaign on advancement of these goods, at first it is necessary to describe the goods. It is necessary to distinguish the goods of industrial appointment and consumer goods. The first are intended for industrial needs or resale, and the second? For individual consumption. Between these kinds of the goods there is a big difference. It is impossible to advertise the goods of industrial appointment, as the goods of individual consumption. Business not only in the name, but also in an essence, in that audience to which the advertising action will be turned. If advertising for the goods of individual consumption can be based on feelings, emotional perception in advertising of the goods of industrial appointment of emotional factors can and not to be. Certainly, there are goods which can be used both private consumers, and manufacturers. Aluminium windows can be carried as to the goods of industrial appointment, and the goods of individual consumption. But while for apartment they the expensive. Therefore aluminium windows are used by a management of the enterprises. Hence, it is necessary to emphasise in advertising one segment of the market, on a commodity market of industrial appointment. The competition to aluminium windows is made by plastic windows. Any production has certain merits and demerits. The basic advantage of aluminium windows which draws attention of buyers, their ecological compatibility is. On the contrary, the relation of many production workers to plastic windows the negative. This results from the fact that under the influence of the big differences of ambient temperatures of plastic arts starts to evaporate harmful substances. At the same time, the basic lack of aluminium windows in comparison with plastic is their price. It a little above, as limits a circle of consumers. But this temporary phenomenon. In the near future the price for aluminium windows becomes same, as well as on plastic. For an advertising campaign of aluminium windows money resources be required on following actions: on placing of advertising messages in printing editions, for creation and outdoor advertising placing, for fee of the photographer. The volume of necessary investments is defined in our case by calculation of the estimate on the basis of quotations on marketing researches, services of the photographer, advertising agencies and duration of advertising of the goods. Before to start working out and release of the new goods, it is desirable to find out, whether has sense it to do. For any industrial enterprise manufacturing something is understood as reception of profit on realisation of the given product. And the profit at realisation will be received in the event that the obtained sum of means will exceed expenses for manufacture and realisation of this production. To get prospective profit and in general to sell a product to the enterprise it will be possible only if consumers in the market are ready to buy the goods that is if these goods are necessary for them. Therefore, in the beginning it is necessary to find out, whether exists in the market so-called? A niche?, which could? To fill? These goods. Marketing researches are for this purpose carried out. In rare instances the enterprise is engaged in it? The manufacturer. Usually for it address in specialised agencies.
In our case such agency is? Media Soft?. The estimate of the basic expenses on marketing researches is resulted in tab.2.3. 9547 rbl. will be necessary For agency fee These means расходованы on the writing goods: pens, a paper, paper clips; on communication payment (from calculation of 450 roubles for communication on a city and 1077 roubles for 5 hours of conversations with other cities); attraction for research of five persons which will be engaged in audience interrogation (potential consumers) and miscellaneous costs.
Interrogation of potential consumers? It is a method of gathering of the information. There is a version of interrogation which is called deep interrogation. It is applied to professional consumers, that is to experts of certain area. It consists in long conversation interrogated and the interviewer in which course it is found out, the requirement for what goods for today is available at interrogated, and also the information on knowledge, preferences and belief of people, on degree of their satisfaction [27, с. 150] turns out. But this method, unfortunately, in our case is not present possibility to use. It speaks too a large attendance (presumably, Siberian region, is more exact heads of the various enterprises in Siberian region) and complexity of carrying out (duration of conversation is supposed till two o’clock). Naturally, to lead such discussion by phone it is rather difficult, and to provide personal meeting of the interviewer and interrogated it is almost impossible because of their big number. At an advertising campaign estimation simple interrogation of potential consumers will be used. For this purpose employees of Open Company «Натали» develop the questionnaire which questions it is offered to answer consumers at «the Siberian Fair» during an exhibition and in specialised shops on sale of window, door blocks, building materials, and also in halls of the trading equipment. Services of the photographer will manage in the following sum. Cost of one photo in the size 10 and #61 620; 15 см. It is equal 50 roubles, 20 and #61 620; 30 see — 200 roubles. Departure of the photographer costs 300 roubles. To be necessary 3 photos in the size 10 and #61 620; 15 see Hence, expenses on services of the photographer make 3 * 50 + 300 = 450 roubles. Advertising messages in printing editions will be executed in colour. Printing editions give quotations on the publication of the advertising information or counting on one square centimetre, or for one module which comprises some square centimetres. Thus modules happen a different configuration: extended on width (for example, 8 see and #61 620; 4 see or 12,8 and #61 620; 8,1 sm), extended on height (12,8 and #61 620; 37,7 see). Each edition independently defines the size of modules. Magazine? Supply and sale? For the colour advertisement offers the module equal of the one eighth strip that will make 58,5 sq. This module see there are 1980 rbl. for one exit. Hence, considering, what the magazine leaves twice a month, expenses will make 2* 1980 = 3960 rbl. the Newspaper? Offers? Suggests to print the colour advertising message in the form of the module which dimension 33 sq. see, and its cost 920 rbl. There is a newspaper four times a month. Thus, on the announcement publication in the newspaper? Offers? It is necessary to spend 920 rbl. * 4 = 3680 rbl. a month. A weekly journal? The Siberian advertising? Suggests to print the colour announcement of any size. Cost of square centimetre of its area / sq. see the second colour page 39 of rbl.; 26 rbl. / sq. see the third colour page (it is penultimate page); 23 rbl. / sq. see the fourth colour page (it is last page) the area of the advertisement and in that, and other edition it is supposed 7*7 = 49 sq. see Hence, for the edition? The Siberian advertising? In a month 49* 39* 4 =7644 rbl. (on 2 page) are required; 26 *49 *4 = 5096 rbl. (on 3 page); 23 *49 *4 = 4508 rbl. (on 4 page). Considering that new, it is necessary to force to turn the advertised goods on it as much as possible potential consumers, that is it is expedient to place the advertising message on the second page.
For manufacturing of one separate poster with the metal basis in the size of 1,2 m and #61 620; 1,8 m are necessary 6000 rbl. It is supposed to use such two posters. Hence, Except manufacturing, posters it is necessary to place 6000*2 =12 000 rbl. on city streets. For this purpose it is necessary to conclude the contract, to issue rent and to obtain the permit in city administration. It the advertising agency is engaged in all, and these services will cost about 7000 rbl. in the first month. The next months it will be necessary to pay only rent of the earth which will make about 200 roubles a month depending on a city district.
The total sum which needs to be spent for goods advancement makes more than 45 thousand rbl. the Russian legislation provides reference of advertising expenses on production cost price, but within certain specifications. For the given enterprise with volume of goods turnover to 30 million roubles this specification is equal 7,5% that in money terms makes 741,8 thousand roubles. Expenses on our advertising campaign do not exceed the given specification.
2.2 The estimation and the analysis of indicators of efficiency of the advertising campaign
Speaking about an advertising efficiency, assume, what profit will be brought by this action, how much a gain will exceed the means spent for its carrying out. In the given paragraph the question of efficiency of an advertising campaign on advancement of the new goods (aluminium windows) Open Company companies is considered Nataly. Are thus analyzed quantitative and quality indicators of efficiency of an advertising campaign. How it was already marked, quality indicators characterise mainly communicative advertising efficiency, quantitative? Mainly economic (trading) efficiency.
Calculation of requirement for investments for realisation of this advertising campaign is spent for 12 months during which it should pay off. Calculation is made according to technique ЮНИДО. Since 1999 operate? Methodical recommendations about estimations of efficiency of investment projects?, confirmed by the Ministry of Finance and Gosstroy of Russia. Some advertising agencies believe that placing of the advertising message can bring to the enterprise increase in a gain at 50%. In our opinion from realisation of publicity the enterprise expects gain increase approximately for 20 percent. By the current moment time level the gain without the tax to the added cost makes 8 242 569 roubles. Hence, expected level of a gain will be equal 9 891 082,8 roubles. The increase in a gain from production realisation will make 1 648 513,8 roubles a year. Proceeding from former level of industrial expenses, it is supposed that the new volume of expenses will be equal 7 938 067,2 rbl. That is expenses will increase for 1 323 011,2 rbl. a year. For calculation of norm of discount the percent of inflation at a rate of 14%, bank percent — 15%, a risk level for the new goods — 13% is accepted. As a result of calculation the norm of discount will make 42% a year. In the given technique concepts of capital investments are used, which will make for the zero period of 44 681 roubles (is the requirement for money for contract and rent registration on the earth; creation of a poster and photos; carrying out of marketing researches) and 15 684 roubles for the following period. Methodical recommendations is provided to estimate efficiency of the project as a whole and efficiency of participation in the project. The estimation of efficiency of the project is assumed as a whole by definition of potential appeal of the project for possible participants and searches of sources of financing. Efficiency of participation in the project is defined for check of a realizability of the project and interest in it of all its participants. The choice of the investment project is based on calculation of economic indicators of efficiency in which quality it is recommended to define:
1) the net profit;
2) the pure discounted income;
3) internal norm of profitableness;
4) requirement for additional financing;
5) indexes of profitableness of expenses and investments;
6) a time of recovery of outlay; group of the indicators characterising a financial condition of the enterprise? The participant of the project. The indicators of efficiency set forth above pay off on the basis of definition of a monetary stream of the project. Any project represents the operation connected with reception of incomes and of expenses, that is it generates monetary streams. As monetary streams understand dependence on time of monetary receipts and payments at realisation of the project generating it, defined for all settlement period. The settlement period covers an interval from the beginning of the project before its end. At a project estimation use also the saved up monetary stream. Its characteristics? The saved up inflow, the saved up outflow and the saved up balance are defined on each step of the settlement period as the sum for flowing and all previous steps. At definition of efficiency of the given project capital investments concern outflows (the expense of money resources); expenses for working capital increase. And as inflows receipts of money resources act. We will define the basic indicators of efficiency of advertising activity.1. The net profit (ЧД)? It is the saved up effect (balance of a monetary stream) for all settlement period: ЧД = and #931; фт, (2. 1) where фт? A monetary stream, thousand rbl.2. The pure discounted stream (ЧДД)? The saved up discounted effect for the settlement period: ЧДД = and #931; фт * and # 945; т * (), (2. 2) where and #945; т? Discounting factor (reduction of monetary values of monetary streams occurring at different times to value for the certain moment of time? The reduction moment), it pays off under the formula 2.3 Е? Norm of discount; it is set by investors or participants of the project for a year. In this case it includes the amendment on the risk, 13% equal for a new product, also it includes bank percent (15%) and inflation percent (13%); Е = 41%; and #913; т = 1/[ (1+Е) ^tt-t0], (2. 3) where tт? The moment of the termination or the beginning of t that step; t0? The reduction moment, gets out any way. ЧД and ЧДД characterise excess of total monetary receipts over total expenses for the project. Difference (CHD-CHDD) name project discount. For a project recognition effective it is necessary, that ЧДД was positive.3. Internal to profitableness holes (ВНД)? Eve’s this such positive number at which equality to norm of discount (Е=Ев) ЧДД it is equal to zero. At Е and #61 502; Eves ЧДД it is negative, at Е and # 61 500; Eves? It is positive. Hence, for an estimation of efficiency of the project it is necessary to compare Eves with norm of discount Е. If Eves> Е, we have positive ЧДД and consequently the project is effective.4. A time of recovery of outlay? It is duration of the period from the initial moment till the recoupment moment. The recoupment moment considers that moment of time after which the current net profit becomes and further remains non-negative.5. A time of recovery of outlay taking into account discounting? It is duration of the period from the initial moment till the moment of a recoupment taking into account discounting which is defined as time moment after which the current net profit becomes and further remains non-negative.6. Requirement for additional financing (ПФ)? This maximum value of absolute size of negative memory balance from investment activity. Size ПФ shows the minimum volume of external financing of the project, necessary for maintenance of its financial realizability.7. Requirement for additional financing taking into account discount (ДПФ)? The maximum value of absolute size of the negative memory discounted balance from investment activity. Size ДПФ shows the minimum discounted volume of external financing of the project, necessary for maintenance of its financial realizability.8. Profitableness indexes characterise? Project return? On the means enclosed in it. At an efficiency estimation are often used:? An index of profitableness of expenses? The relation of the sum of monetary inflows to the sum of monetary outflows;? An index of profitableness of the discounted expenses? The relation of the sum of the discounted monetary streams to the sum of the discounted monetary outflows;? An index of profitableness of investments (ИД)? The relation of the sum of elements of a monetary stream from operational activity to absolute size of the sum of elements of a monetary stream from investment activity. ИД it is equal to relation ЧД increased by unit to memory volume of investments;? An index of profitableness of the discounted investments (ИДД)? The relation of the sum of the discounted elements of a monetary stream from operational activity to absolute size of the discounted sum of elements of a monetary stream from investment activity. ИДД it is equal increased by unit relation ЧДД to the memory discounted volume of investments. At calculation ИД and ИДД can be considered or all capital investments for the settlement period, or only initial capital investments.ПоказатьСвернуть