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Lecture notes, cheat sheets
Marketing. Lecture notes: briefly, the most important
Directory / Lecture notes, cheat sheets Table of contents
Question 1. The concept of marketing as a modern system for managing the production and sale of goods 1. The word "marketing" (emphasis on the first syllable) means in translation from English active work, action in the market. Marketing - pronounced in English. [maketin], stress on the 1st syllable, "r" and the last "g" are not pronounced. Marketing - a kind of human activity to meet needs through the exchange of goods. Marketing is a theoretical and practical system aimed at the development and production of new products, taking into account the market situation and changing needs of people in order to maximize profit by satisfying needs. The main point of marketing is the production of a salable product, that is, one that will definitely find its buyer. 2. Marketing can be viewed from four perspectives: - as an ideology of modern business; - as a system of marketing research; - as marketing management; - as a set of measures for the formation of demand and sales promotion (FOSSTIS). With such an integrated approach, two sides of marketing are revealed. Firstly, this is a thorough study of the market, the state of demand and needs, and secondly, an active influence on the market, the formation of needs and consumer preferences. The main thesis of the theory and practice of marketing: "Produce what is bought, and not impose on customers what they want to produce." Question 2. Historical outline of the development of marketing in foreign countries 1. The theory of marketing as a reaction to the aggravation of the problem of selling goods originated in the United States at the turn of the XNUMXth and XNUMXth centuries. and at the beginning of the XNUMXth century. developed into a separate discipline. 2. The erroneous interpretation of marketing as a theory of sales and advertising was revealed by the crisis of 1929 - 1933, after which the view of marketing changed and acquired a broader and more complex character. An important milestone in the history of marketing theory was the 50s, in which it merged with management theory. The mass practical use of marketing began, in particular, during a radical restructuring of the organizational structures of such large American companies as General Electric, General Foods, McDonald's, Procter and Gembel, Gillette, etc. Then marketing received a wide distribution in Japan and Western Europe. In the 50s - 60s. marketing strategy proceeded from the abundance of raw materials, energy and other natural resources. In the 70s - 80s. the central place was occupied by the problems of costs, energy savings, environmental protection. Question 3. Principles and goals of marketing 1. Marketing principles: - maximum satisfaction of market needs; - maximum profit; - concentration of efforts of all departments to achieve a common goal; - accounting and rational use of resources. 2. Marketing goals should coincide with the goals of the company, raising its prestige and strengthening its position in the market. The goals of marketing are reflected in its principles. Marketing objectives can be classified into qualitative and quantitative. Quality goals include: - introduction to the labor market and expansion of its boundaries, promoting the growth of employment of the population; - support of social programs; - stimulation of the economic situation in their country and in the economy of countries that import manufactured products. Quantitative Goals: - Achieving the maximum amount of profit; - achievement of the maximum volume of sales in natural and monetary units; - increase in labor productivity per employee; - increase in market share. Question 4. Marketing tasks 1. The main goal of an entrepreneur in a market economy is to achieve maximum profit from his business, the profitability of the enterprise. But in order to ensure high profitability of the enterprise, it is necessary to sell products with sufficient profit. This requires producing not what is desirable or possible to do, but what will find a buyer willing to pay the appropriate price. Thus, the main task of the entrepreneur is not the sale of already produced products, but the production of such products that will be bought. 2. Marketing is aimed at solving the following practical problems: - substantiation of the need for the production of a particular product through the work of the relevant R&D organizations (research and development work); - coordination and planning of production, marketing and financial activities of the enterprise; - improvement of methods and ways of selling products; - regulation and, if necessary, restructuring of all activities of the company. Question 5. Types of marketing Marketing tasks vary depending on the following factors: - the current situation on the market both in general and in its individual sectors in terms of geographical and demographic distribution; - the dynamics of the level of demand for a particular product. Depending on the degree of market coverage, marketing is divided into: micromarketing - marketing activities within one company or one product group; macromarketing - marketing activities that cover a wide range of goods and services within large industries, as well as the country as a whole, that is, on a global scale. In addition, there are other types of marketing: - merchandiser - organization of retail trade; - behaviorism - the study of consumer behavior; - consumerism - the study of the quality and level of consumption in different groups of people; development of consumer protection. Question 6. Functions of marketing 1. Marketing functions are aimed at solving the following tasks: - collection and analysis of the necessary information; - marketing management. Analytical activity involves primarily conducting marketing research. Management activities - planning and practical implementation. The main functions of marketing: - study and analysis of demand, identification of needs, forecasting of the market situation; - development of a new product and its positioning in the market; - pricing and development of a pricing strategy; - product assortment planning; - organization of rational commodity circulation; - analysis, planning, implementation and control of marketing activities; - Formation of demand and promotion of sales - FOSTIS. 2. Marketing mix - a set of marketing factors that are controlled and used in order to obtain the desired response in a particular (target) market. In the world literature, such a complex is called the "4-x R" complex: - product [product] - a product or a set of products and services that the company offers to a particular market; - price [price] - the price or amount of money that consumers must pay to receive the goods; - place [place] - distribution methods or activities through which the product is available to the buyer; - promotion [promotion] - stimulation or activity of the company to disseminate information about the merits of its product and convince it to buy. Question 7. Marketing concepts 1. The implementation of marketing functions is carried out by: - systematic analysis of external factors; - identifying and studying the needs of the market, competitors on it; - study and planning of goods; - promotion of goods circulation and sales; - development and maintenance of pricing policy; - Compliance with laws. 1. There are five main approaches from which marketing activities are carried out: - The concept of production improvement states that goods will be sold if you focus on the economic efficiency of production and increase its volume. Such a position finds its justification only in conditions of shortage of goods and their high cost. The concept of product improvement proclaims the key to the sale of goods is its high quality. However, consumers may prefer similar products (substitute products). - The concept of commercial efforts (sales) comes from the fact that goods will be sold in sufficient volume only with the help of significant efforts in the field of marketing and promotion. This approach can be quite effective, but the positive result is usually short-lived. - The concept of marketing is based on the fact that goods will be sold if they study well the needs and demands of people and satisfy them better than competitors. This is a modern concept that has been confirmed by positive practice. However, this approach is relatively expensive and requires highly qualified performers. - The concept of social and ethical marketing assumes that goods will be sold only if it is possible to find and organize the optimal combination of interests of producers, consumers and society as a whole. The relevance of this approach lies in the fact that it takes into account not only the individual needs of consumers, the economic interests of producers, but also the requirements of ecology, public morality, and regional characteristics. Question 8, The concept of the market and its role in the economic mechanism of society 1. The concept of "marketing" (emphasis on the first syllable) comes from the English word "market" [makit] - market. Market means: - a place for trade; - the sphere of commodity-money circulation as a result of the collision and coordination of the interests of producers and consumers; - the totality of economic relations between the subjects of commodity turnover. Market Conditions: - social division of labor; - the commodity nature of social production. 2. The market as a socio-economic phenomenon arose around the XNUMXth century. BC e. Its appearance is due to the social division of labor, the formation of private property and commodity production. As soon as people began to specialize in certain types of activity, an objective need arose for the exchange of the products of their labor, that is, the market as a set of relations between producers and consumers. At the initial stage, the market had a primitively simple practice and was carried out through barter, and only with the advent of money - commodity-money exchange. Question 9. Components of the market and their relationship 1. The formed market model consists of three elements: - demand; - sentence; - price. Demand means: - solvent need for goods and services; - part of the public needs, which is presented on the market. Demand can be distinguished as unsatisfied, realized and actual, and the actual demand is equal to the sum of unsatisfied and realized. 2. Product offer - a set of products that are to be sold, are on the market or can be delivered to it. Sources for the formation of a product offer: - own production; - system of blanks; - stocks of goods; - import of goods; - re-export of goods. 3. The price of a commodity is the monetary expression of its value. Value is the socially necessary labor of the commodity producer embodied in the commodity. In any society, there are objective economic laws for determining the value of a certain commodity, according to which it is exchanged depending on supply and demand. Question 10 1. The market functions in accordance with its spontaneous laws of supply and demand, independent of the will of people. The essence of the law of supply and demand is to establish a dynamic balance between them. As practice has shown, intervention in this balance through administrative will entails negative consequences for the economy (for more details, see Shevchuk D.A., Shevchuk V.A. Macroeconomics: Lecture Notes. - M .: Higher education, 2006). 2. The basic requirement of the law of value is that the exchange of commodities be carried out on the basis of the socially necessary expenditure of labor and time for their production. What costs are socially necessary, and what are not, is determined only by the market in the course of interaction on it between producers and consumers of a particular product. If a buyer in the market bought a given commodity at a certain price, then he recognized its usefulness and, therefore, recognized the need for a certain time and labor spent on the production of this commodity. In this case, the commodity acquired a value. 3. The market economy is considered balanced if the equilibrium is observed: D? C \uXNUMXd T? C where D is the amount of money in circulation; C is the velocity of circulation of this money; T - the number of goods entering the market; C - the prices of these goods. This equality is constantly violated and restored again due to changes in its components. Most often, prices as the most elastic component of the market act as such a corrective lever. Question 11. Operation of the law of demand. Non-price factors of demand 1. Arguments explaining the operation of the law of demand: - confirmation that people buy more cheap goods than similar but more expensive ones; - the principle of diminishing utility, according to which each subsequent unit of a product brings less benefit to its consumer; however, when the price of a certain product decreases, the desire to purchase it increases; - the effect of income and substitution. 2. The income effect is observed when the price of a certain product decreases, at which the buyer has the opportunity to purchase other goods without denying himself the consumption of the former ones. The substitution effect is observed when the price of a certain product decreases, at which the buyer has the opportunity to purchase it in a larger volume instead of purchasing other, similar products (for more details, see Shevchuk D.A., Shevchuk V.A. Macroeconomics: Lecture Notes. - M .: Higher education, 2006). 3. Non-price factors include the following factors: - economic - the economic structure of society as a whole, the solvency of the population, the level of retail prices and the ratio between prices and differences in goods, the volume and scale of production in subsidiary and personal farms, etc .; - social - the social structure of society as a whole, public consumption funds; the status of the consumer depending on his profession, place of residence (urban or rural area), level of education - and the culture of the population; as well as national, religious, local, traditional habits; and etc.; - demographic - population size and growth, sex and age composition, migration; - natural - climatic conditions, type and amount of precipitation, relief and landscape of the area; - aesthetic - the appearance of the product and its packaging; - psychological - upbringing, character, temperament, features of perception of various images; - fashion - temporary popularity, a short dominance of consumer tastes, forms and patterns of clothing, other household items in various sectors of society. Question 12 1. In order to successfully work in a foreign market, an entrepreneur must study the possibilities of the market of the country of interest to him. The export market is determined by two characteristics, one of which is the structure of the national economy. The economic structure of the country determines its needs for goods and services, the level of income of various strata of society, and the employment of the population. According to the type of economic structures, countries are divided into: - countries with subsistence economies; - exporters of raw materials; - industrialized; - Industrialized. 2. In countries with a subsistence economy, the population is engaged in the simplest agricultural and handicraft production, part of which is consumed by itself, and the other part is exchanged for other goods and services. A foreign exporter in this case has very limited opportunities. Bangladesh and Ethiopia can be named among the countries with a similar economic system. 3. Countries - exporters of raw materials are rich in one or more types of natural resources, the export of which serves as a source of income, but are deprived of other factors of production. Chile (tin and copper), Zaire (rubber) and Saudi Arabia (oil) are examples. In the foreign market, such countries are markets for the sale of equipment for the extraction and primary processing of raw materials, tools, auxiliary materials, handling equipment, trucks and other vehicles. Depending on the number of foreigners permanently residing in the country and the wealth of local elites, they can also be a market for Western-style consumer goods and luxury goods. 4. Industrially developing countries (Egypt, Philippines, India, Brazil), as the manufacturing industry develops, which provides from 10% to 20% of the country's gross national product, rely more and more on imports of textile raw materials, steel and heavy engineering products and less and less on import of finished textiles, paper goods, automobiles. Industrialization causes the emergence of a rich class, the growth of a middle class whose needs can only be met through imports. 5. Industrialized countries are the main exporters of finished industrial products and the most attractive sales market. The variety of manufactured goods is exported to other countries with other types of management. These countries include the United States of America, the countries of Western Europe, Japan, and other developed countries of the world. Question 13 An important indicator that forms demand in the market is the nature of the distribution of income in the country, which depends on the characteristics of not only the economic structure of the country, but also its political system (for more details, see Shevchuk D.A., Shevchuk V.A. Money. Credit. Banks A course of lectures in a concise presentation: Study guide - M: Finance and statistics, 2006). By the nature of the distribution of family income, countries can be distinguished with: - very low level; - mostly low level; - very low and very high levels; - low, medium and high levels; - Predominantly average. Question 14, Needs as a socio-economic category 1. In a general sense, need is the ability to consume, and consumption itself - a way to meet needs. The need expresses the state of the human body, seeking to obtain the necessary (seemingly necessary). 2. Properties needs: - objective existence regardless of the will and consciousness of man; - dependence on individual qualities, features of the historical type of development of society, the level of scientific and technological progress. 3. The law of the rise of needs, that is, the development of needs and their influence on the process of social production, was first formulated by V.I. Lenin. The essence of the law: needs are constantly changing, growing, becoming more complex and at any given moment exceed the possibility of satisfying them, being the driving force behind the transition to a new cycle of social reproduction: production, distribution, exchange, consumption, production and further in a circle. Question 15 1. According to the object, needs are distinguished: - material (hunger, thirst); - spiritual (interest, curiosity, desire for beauty). 2. According to the subject, needs are distinguished: - personal (individual, family); - public (groups, societies). 3. According to the level of abstractness, needs are distinguished: - abstract (work, rest); - specific (for example, drink a glass of clean water). 4. In relation to the production process, needs are distinguished: - economic (require payment); - non-economic (do not require payment). 5. By urgency, relevance, needs are distinguished: - primary (physiological); - secondary (clothes, footwear); - remote (needs, the satisfaction of which can be attributed to a more distant period). Question 16 1. The growth of firms and markets has deprived many marketers of direct contact with their customers. Managers increasingly have to resort to consumer research to find out the basic question: "How exactly does the consumer respond to various incentive marketing techniques that the firm may undertake?" 2. The starting point for all firm efforts is a simple model of buying behavior. 3. The task of a market specialist is to understand what happens in the "black box" of the consumer's consciousness between the appearance of stimuli and the appearance of a response to them. The "black box" itself consists of two parts: - the first - the characteristics of the buyer, which have a major impact on how a person perceives stimuli and reacts to them; - the second part is the process of making a purchasing decision, on which the result depends. Question 17, Cultural factors 1. Cultural level factors. General characteristics 2. Culture 3. Subculture 4. Social position 1. Samos cultural factors have a great and deep influence on consumer behavior. They include: culture; subculture; the social status of the buyer. 2. Culture is the main root cause that determines the needs and behavior of a person. Human behavior is largely an acquired thing. The child learns a basic set of values, preferences, manners and behaviors that are characteristic of his family and the basic institutions of society. 3. Any culture includes smaller components, or subcultures, which provide their members with the opportunity to specifically identify themselves and determine their social affiliation. Separate subcultures with their specific preferences and prohibitions express different religious groups. Racial groups are clearly distinguished by their cultural identity. Different from other subcultures with their own specific way of life in each case, they also have geographical areas - regional subcultures. 4. In almost every society, there are various social classes - relatively stable groups within society, located in a hierarchical order and characterized by the presence of members of similar value ideas, interests, behavior. Social classes have the following characteristics: - persons belonging to the same class tend to behave in almost the same way; - depending on belonging to a particular class, people occupy a higher or lower position in society; - social class is determined not on the basis of any single variable, but on the basis of occupation, income, wealth, education, value orientations, and similar characteristics; - individuals can move to a higher class or fall into one of the lower classes. Social classes are characterized by clear preferences for goods and brands in clothing, household items, leisure activities, and cars. Therefore, some marketers focus their efforts on a single social class. The target (from the point of view of marketing) social class implies a certain type of store in which the product should be sold, the choice of certain means of disseminating information for its advertising and a certain type of advertising messages. Question 18 1. Reference groups have a particularly strong influence on human behavior. Reference groups - groups that have a direct (that is, through personal contact) or indirect influence on the attitude or behavior of a person. Groups that have a direct influence on a person are called membership groups. These are the groups to which the individual belongs and with which he interacts. Some of these groups are primary and interaction with them is permanent. These are family, friends, neighbors and colleagues at work. In addition, a person belongs to a number of secondary collectives. They tend to be more formal and interactions with them are not permanent. These are various public organizations such as religious associations, professional associations and trade unions. Reference groups influence a person in at least three ways: - through the acquaintance of the individual with new patterns of behavior and lifestyle; - through a change in the attitude of the individual to himself, since he, as a rule, seeks to "fit" into the team; - the group pushes the individual to conformism, which may affect his choice of specific products and brands. 2. The family and its members can have a strong influence on the behavior of buyers. The guiding family usually consists of the individual's parents. From them a person receives instructions on religion, politics, economics, ambition, self-respect, love. A more direct influence on everyday buying behavior comes from an individual's family of origin, that is, his spouse and children. The family is the most important consumer buying organization within society. The ratio of the influence of husband and wife varies widely depending on the product category. The wife traditionally acts as the main purchaser for the family of food, household items and basic clothing. However, with the increase in the number of working wives and the increased willingness of husbands to make more family purchases, the situation is changing. So the mainstream sellers are making the mistake of continuing to think of women as the main and only buyers of their products. 3. The individual is a member of many social groups. His position in each of them can be characterized in terms of social roles and statuses. Let's say, Ms. Petrova in relation to her parents plays the role of a daughter, in her own family - the role of a wife, within the company - the role of the head of the production of branded goods. A role is a set of actions that are expected from an individual by those around him. Each of these roles will influence an individual's buying behavior differently. Each role has a certain status, reflecting the degree of its assessment by society. The role of the manager has a higher status in the eyes of this society in comparison with the role of the daughter. As a manager, Ms. Petrova will purchase clothes that correspond to this particular status of hers. Question 19 With age, tastes and needs, the range and range of purchased goods and services change. A child needs products for baby food, an adult - a variety of products, in old age - mostly dietary. Over the years, human tastes have changed in relation to clothing, furniture, recreation and entertainment. Each stage of the family life cycle determines its own consumption pattern. Stages of the life cycle Features of behavior and buying habits 1. Stage of single life; young singles living apart from their parents Few financial burdens. Opinion leaders in the field of fashion. Ready for an active holiday. Buyers of basic kitchen equipment, basic furniture, cars, vacation packages 2. Young newlyweds without children. The financial situation is better than it will be in the near future. The highest intensity of purchases, the highest average purchases of durable goods. Buyers of cars, refrigerators, essential and durable furniture, vacation packages. 3. "Full Nest" - Stage 1: Youngest child less than 6 years of age Home purchase peak. Working capital is low. Dissatisfaction with their financial situation and the amount of money saved. Interest in new products. Fans of advertised goods. Buyers of washing and washing machines, cough medicines, vitamins, dolls, strollers, sledges, skates 4. "Full nest" - 2nd stage: the youngest child is 6 years old and over The financial situation is improving. Some wives work. Advertising has less impact. They buy goods in larger packaging, conclude deals for the purchase of many commodity units at once. Buyers of a variety of food products, cleaning products, music teachers, musical instruments 5. "Full nest" 3rd stage: elderly spouses with children in care. The financial situation has become even better. More women work. Some children get jobs. Advertising has very little effect. High average purchase activity of durable goods. Buyers of new, sleeker furniture, car travelers, buyers of non-essential appliances, boats, dental services, magazines 6. "Empty nest" 1st stage: elderly spouses, whose children already live separately, the head of the family works. The largest number of owners of their own homes. Most are satisfied with their financial situation and savings. Interested in travelling, outdoor activities, self-education. Make gifts and charitable contributions. Not interested in new products. Buyers of vacation packages, luxury goods, services and home improvement products 7. "Empty nest" - 2nd stage: elderly spouses, whose children live separately, the head of the family is retired. Sharp decline in income. Mainly support dwellings. Buyers of medical devices, medical products that promote health, sleep, digestion 8. Dowager, working. The income is still quite high, but the house is already tempted to sell 9. Dowager, retired. The need for medical care and goods is the same as for other groups of pensioners. Sharp decline in income. A special need for attention, affection, well-being. A marketing specialist should strive to identify groups of goods and services purchased by a person, depending on the type of his occupation. A firm may specialize in the production of goods intended for a particular professional group. The economic position of an individual is determined by the size of the expenditure part of income, savings and assets, creditworthiness and views on spending funds as opposed to their accumulation. Marketers who offer income-driven products need to be constantly on the lookout for trends in personal income. Individuals belonging to the same subculture (social class, occupation) can lead completely different lifestyles. A way of life is the established forms of a person's being in the world, reflected in his activities, interests, and beliefs. Lifestyle characterizes a person more than belonging to a certain social class or type of personality. Each person has a very specific type of personality that influences his buying behavior. Personality type - a set of distinctive psychological qualities of a person that determine the nature, consistency and constancy of his responses to changes in the environment. The type of personality is usually described on the basis of such traits inherent in the individual as self-confidence, sociability, good breeding; desire for power, success; love of order, adaptability, etc. Question 20. Psychological factors. Motivation 1. Every person has many different needs. Some of them are biogenic in nature; they are caused by such states of internal physiological tension as hunger, thirst, discomfort. Others are psychogenic, that is, they are the result of such conditions as the need for recognition, respect, spiritual closeness. The presence of these needs cannot yet motivate a person to take action at any given time. A need that has reached a high level of intensity becomes a motive. Motive (or motivation) is a need that has reached the peak of its intensity, provoking a person to look for ways and means to satisfy it. 2. A person will strive to satisfy the most important needs as long as they are the driving motive. At the same time, there is an incentive to satisfy the next most important need. Work motivation theories can be divided into two groups: - content; - process. Content theory focuses on the motives of certain behavior and the sources of such motivation. Process theory explains the process of formation and development of motivation that occurs within a person. Together, both of these theories make it possible to understand motivation as a phenomenon, to find a personal approach. 3. Freud's theory of motivation states that people cannot recognize and control all those real psychological forces that shape their behavior. A person suppresses many desires in himself. They do not disappear and manifest themselves in dreams, slander, neurotic behavior, obsessive states, and finally, in psychosis, in which the human "ego" is unable to balance the powerful impulses of its own "id" with the oppression of the "super-ego". Freud singled out three components in the mental structure of personality; - the unconscious "id" (It) - the area of \uXNUMXb\uXNUMXbdrives, blind instincts; - conscious "ego" (I) - perceiving information about the surrounding world and the state of the body, restraining impulses "id", regulating the action of the individual; - "super-ego" (Super-I) - the area of social norms and moral attitudes. A person cannot accurately determine the beginning of his own motivation. He may assume that he seeks to satisfy, for example, his hobby or other needs, while deeper psychological impulses will be true. Question 21 1. Herzberg's theory of motivation is based on interview data taken in various workplaces, professional groups, countries. So, situations were collected and classified into groups in which people feel satisfaction or, conversely, dissatisfaction with their work, and appropriate conclusions were made. Job satisfaction is affected by the following factors: - achieving the desired level of qualification and recognition of success; - interest in work; - Responsibility; - career advancement; - Opportunity for professional growth. These Herzberg called "motivators." Job dissatisfaction is influenced by the following factors: - control method; - organization policy and administration; - working conditions; - interpersonal relationships in the workplace; - Inadequate to the efforts expended earnings; - lack of confidence in the stability of work; - the impact of work on personal life. These external factors are called "context factors", or "hygienic". 2. If motivators are associated with the content of the work and the internal needs of the individual in self-expression, then the factors that cause dissatisfaction with the work are with its shortcomings and external conditions. If external factors create an unfavorable situation, then at best, a neutral attitude develops towards work. Job satisfaction is caused only by motivating factors. Question 22. A. Maslow's hierarchy of needs 1. The behavior of the individual, according to Maslow, is due to the most powerful need at the moment until it is satisfied. A satisfied need does not act as a motivating factor. Maslow classifies needs in the following hierarchy: - physiological (thirst, hunger, sleep, sex); - the need for security; - social needs (love, belonging to a certain social group); - need for respect (self-respect, success, status); - the need for self-expression. 2. Needs, according to Maslow, are satisfied and determine behavior in a certain order: first - physiological and the need for security, then - the needs of a higher level. Moreover, according to Maslow, if there are two equally strong needs, then the need of a lower level dominates. 3. Conditions and situations determine which needs will dominate. In a certain situation, different people have different needs, and changing it will give different results. Work, as such, provides an opportunity to meet higher-level needs related to respect and self-expression. On the other hand, work can be a way to find opportunities to meet such needs outside of work, and then higher-level needs associated with conditions and safety factors dominate. Question 23 1. Motivated activity is always purposeful and is associated with the direct or indirect satisfaction of any need. The strength of the direction of such activity depends in part on the extent to which the person feels rewarded for achieving the goal. The strength of the desire to receive a reward or achieve another goal (in other words, executive motivation) depends on: - value (desirability) of reward; - its achievability (the reality of receiving remuneration, "the value of expectations"). 2. A person's needs determine his values. In order for a person to be motivated for a certain activity, the reward for his achievements in this activity must be noticed and appreciated by him. On the other hand, not always even persistent efforts guarantee the achievement of the goal. On the basis of experience, an idea (expectation) is formed about how real the possibility of achieving the goal is. In this case, all possibilities are weighed and all obstacles created by the environment and the situation of the moment are taken into account. If expectations are high and supported by positive experience, the strength of the incentive motive increases. Thus, success enhances motivation. Otherwise, there is a feeling of futility of efforts, which reduces motivation. Setting realistic goals, bringing expectations closer to reality, and rewarding the achievement of the goal in a way that the employee himself values can relieve this feeling. Question 24 1. Situational factors are intermediary variable factors, the influence of which either generates motivation or hinders it. These situational factors are: - control method; - organizational climate; - relationships in the workplace; - the pressure experienced by the individual at the workplace; - the production method used; - accepted norms of ethics and morality at the enterprise. In Herzberg's theory, such moments are related to hygienic factors. The way in which such issues were dealt with caused an unsatisfied or neutral attitude in the individual, but did not create motivation. In the theory of expectations, the factors of the situation and the environment are those variables that assess the degree of desirability of the goal and the possibility of achieving it. So, for example, the production method used at the enterprise can deprive the employee of the opportunity for the most complete self-expression, that is, limit the satisfaction of such a need. On the other hand, the motivation of subordinates and their achievements in work are largely influenced by the behavior of the leader and his method of management. Subordinates draw conclusions about what achievements are rewarded and what are not, and what consequences follow from their activities. 2. Situational factors often deprive the employee of the desired way to complete the task (for example, lack of a tool or own experience), which hinders the achievement of the goal. Therefore, taking into account situational factors helps to increase motivation. 3. The personality of an employee affects motivation if the reasons for success or lack thereof are clear. A person who underestimates himself looks for the cause of failure in himself, while the other looks outside himself (in the boss, management or working conditions). An employee's self-image as a personality trait affects his experience, expectations, and, finally, motivation. The abilities and skills, values and needs of the employee, as well as the expectations formed on the basis of his earlier life experience, generally motivate internal needs of either a higher level (in self-expression and respect) or a lower level (avoiding unpleasant experiences, receiving rewards) . Question 25, Methods for studying the motives of human actions. functional method 1. To study human actions, motives for making decisions by buyers, the following are used: - functional method; - dynamic method; - method of fundamental analysis. 2. The functional method is based on the position that it is necessary to take into account all the circumstances that affect the adoption of a particular decision. 3. When determining the role of television advertising in influencing the consumer, one should take into account the place of television viewing in the home as the center of family life. When studying the market, scientists have found that consumer preference for a certain brand of goods depends not only on the type of packaging, flavor, etc., but also on additional factors. Buyers are different (young and old, conservative and flirtatious). The psychological factor in the process of making purchasing decisions plays an extremely important role. Irrational psychological motives also determine the decision to purchase industrial products, including machine tools and equipment. Question 26 1. The dynamic method is due to changes in the motives of a person with age, in the process of development of the family, society (nation, race). Therefore, when studying the question of why an individual preferred a certain brand (model, grade, etc.), it is necessary to find out which brands (models, grades, etc.) he bought before and what meaning they had for him throughout life. 1. When studying the motives for certain spending of the family budget, it is important to know how the income growth of a particular family developed. It is known that people adapt more to an increase in income than to their decrease. Question 27 1. Using the method of fundamental analysis when studying the motives of buyers' behavior, specialists are guided by the following: - it is necessary to identify underlying motives that are not known to the buyers themselves; - it is necessary to take into account all secondary circumstances, even if at first they seem unimportant; - hasty interpretation of motives is usually misleading; - most motives are irrational. 2. One of the Western marketing institutes conducted the following study. By interviewing passers-by on the street, experts found out that when choosing such a product in a store as soap, the majority will first of all take into account its washing properties and aroma, and only then color, shape and other properties. The respondents were given soap and about 70% of them showed by their actions that the weight and softness (tenderness) of its surface is important to them. 3. The motivation of buyers, as a rule, is quite irrational. So, in the above example, such properties of soap acted as determining factors, which are in no way connected either with its washing properties and aroma, or with the quality of the soap as a whole. Question 28 1. The study of the motives of the behavior of buyers in the acquisition of industrial products (machines and equipment) and even in the implementation of capital investments showed their irrational nature. Thus, the shape and design of trucks influence the decision-making process of their purchase, as well as technical characteristics. Irrational motives guide the behavior of buyers in cases where preference is given to a product, which, for example, is located in the center of a store window. 2. Psychologists have already suggested that if on the globe the south pole was located at the top, and the north - at the bottom, then the attitude towards the southern countries would be somewhat different. It is also noted that religious, political beliefs, as well as other concepts that determine a person's worldview (faith, love, hope, etc.), are directly related to the formation of irrational motives for people's behavior. 3. So, the development of a new product must begin with identifying the motives for the behavior of potential buyers. The main factors to consider when developing marketing concepts are: - great prospects open up on the market for the product that is able to relieve the buyer's internal stress caused by an unmet need; - the impact of advertising and marketing concepts is the more effective, the more thoroughly they take into account the emotional ties between buyers and the product. Studies have shown that even certain types of materials and raw materials from the perspective of the buyer have their own properties. For example, iron and steel are considered old fashioned compared to aluminum and plastics. Question 29 1. American specialist E. Dichter sets the following tasks for an enterprise selling citrus fruits: - to determine the feelings that customers experience when they see oranges and grapefruits; - Based on the information received, develop a marketing concept. Specialists have developed a system of proportional representation of citrus fruits depending on the opinions and feelings of buyers, using the following evaluation categories: - gaiety; - sociability; - reliability; - sense of family; - social status. Within the framework of the concept of "social status", four types of people were identified: - the first - Mr. Jones - an athlete who has breakfast at five in the morning; - the second - Mrs. Vandobil - a young lady who, as they say, moves in the circles of a select society and is served breakfast in bed by servants at 11 o'clock; - the third - Mr. Canini - the director, who takes breakfast at nine thirty in his workroom; - fourth - Mr. Nash - an accounting clerk who has breakfast at seven o'clock in the morning in a small restaurant near his apartment. Experts interviewed two hundred people, asking them the following question: "Which of these four people prefers orange juice and which prefers grapefruit?" 3. Grapefruit juice is more suitable for a "society" lady and director, while orange juice is associated with ordinary people. Consequently, the so-called "social status" of these juices was determined. When conducting another test, it was found that these products were attributed to the following qualitative concepts: - orange - "sunny, a lot, dynamic, fun, fast"; - grapefruit - "intellectual, small, slow, old and cool." 4. The survey data served as the starting material for the development of advertising media. Such studies should be carried out when developing any marketing concept, regardless of whether the marketing program refers to agricultural products or to machinery and equipment. 5. When developing an export strategy, experts working with Western partners need to know the following: - an important role is played by psychological factors in relation to a new product or supplier when making a purchase decision; - it is important to comprehensively study the visual impact of advertising on the consumer; - most buyers buy a product if they think it fits their personality and social position; - in exceptional cases, buyers are guided only by rational motives (mainly - in cases where the goods correspond to unknown emotional emotions). Question 30 1. From the point of view of management, there are three main types of motivation (needs): - in achieving the goal: the employee sets himself high, but realistic goals; achievements are important to him; - in affiliation: the employee values human relations and friendship and supports them; can be effective when performing tasks that require group work; - in power: the employee seeks to influence others and is looking for such tasks and positions that would allow him to express himself accordingly. 2. In order to use its resources effectively, the enterprise must select such a person whose main motivation corresponds to the characteristics of the task. An employee who has a need to achieve a goal is suitable for a difficult task. He obviously will not complete a task with a high degree of routine and division of responsibility into many workers. However, motivation does not remain unchanged; it is significantly influenced by the situation and working environment in the organization. 3. Litvinov identified two types of motivation: - positions that require diligence and enterprise; - Positions requiring coordination and integration. 4. McClelland came to the conclusion that for employees who have a need to achieve a goal, the following is typical: - to take responsibility, to influence the final result; - moderate goals, where the risk is calculated and predictable; - it is important for them to know how well they are doing the task; feel great in business life, in which success is valued; - money in itself rarely means very much, but is important as an indicator of success. 5. The results of the study by Edgar [Penny showed the existence of terms for maintaining motivation to work; if the content of the work after 5-7 years does not change significantly, then the motivation is clearly reduced. Question 31: Factors affecting motivation and job satisfaction 1. For his own development, a person needs to make sure that the leaders of all links have: - the qualities necessary for work in a labor collective; - motivation of an effective leader. Practical measures for one's own development as a leader are largely related to the stage of a given person's career; the critical stage falls on the middle of a career. 2. Career planning studies were conducted at the Massachusetts Institute of Technology on the following engineers who: - lost interest in technology and instead got carried away with the problems of human behavior; - completely lost motivation to work and turned their activity to family needs and hobbies. The study covered more than 3 thousand people working at various levels and positions. 3. As a result of the study, the following factors were noted that affect job satisfaction and motivation: - variety of requirements for mastery (self-expression) - a structural factor of motivation. In practice, we are talking about the opportunity to show your creative beginning in your work, the compliance of the requirements with the level of skill; - awareness of the task of identical work (work as it is) - an activating factor of motivation; - idea of the meaning, value of one's work (status) - the central factor of motivation; - Feedback. The response to the results of labor stimulates motivation; - self-activity. The ability to work independently, the balance of authority (power) and responsibility, in a different way: "Self-discipline is the price of freedom. Usually people are willing to pay this price." 4. At different stages of tenure in the same position, one of the listed factors may be of decisive importance, depending on the duration of the person's performance of work that is unchanged in content. So, during the first year of work in a certain position, the motivation factors are the idea of the meaning of the work and the presence of feedback, and in the interval between the second and fifth years - independence. The employee is "in the prime of life" after 2-3 years of work in one place. After 5 years of work in the same place, achievements in work are significantly reduced. Work-related motivation is replaced by another (travel, hospitality, hobbies during working hours). 5. To maintain motivation, the following measures should be taken: - systematic accounting of personnel positions held by terms (no more than 5 years); the practice of professional horizontal movement and the prestige of such movement; - Enrichment and expansion of the content of the work (effectively up to 5 years); - active structural planning of the organization and the use of flexible organizational forms (project, matrix organization); - organizational activity, training and development of creative approach; - implementation of new effective forms of interaction, industrial democracy. Question 32 1. The organization also develops through overcoming problematic situations, if it recognizes future problems and crises in time; actively seeks ways to overcome them and draws appropriate conclusions. In turn, the organization that hides problems, downplays difficulties, explaining them as insurmountable circumstances, will inevitably reach a dead end. 2. The above applies to each member of the labor collective. Employees as workers and as individuals also develop through overcoming crises. If in youth the emergence of problems is perceived as an accident that will never happen again, then with age the experience of foresight and overcoming difficulties and failures is formed. 3. Everyone - both those who have just entered working life and an experienced worker - needs to consciously and in time take care of their own motivation for work and life, since over the next 10-20 years an alternation of crisis and successful periods is inevitable. It is necessary to strive for a creative sense of events that fill and enrich our lives at work, which occupies the majority of our time. Question 33 1. In order to ensure the effective internal operation of the enterprise, the motivation of employees can be supported in the following ways (settings): - do not be deceived by the thought of the appearance of your own time after work, the achievement of a particular goal. On the contrary, as experience increases, there is more work. To allocate time for oneself, to show sufficient perseverance at the same time is the task of each person, which, except for himself, no one will solve; - create sufficient slack to achieve key end goals by doing the most important work; - maintain the most important organizational and human contacts from the point of view of their work; - do not spare time for communication in the family, from which we receive a significant part of the motivation for life; - correctly assess the value of friendly relations; - to determine a clear, deliberate position on the main life problems and values. 2. The main rules for ensuring the sustainability of personal motivation include the following: - timely and complete rest; - positive attitude to work; - hobbies and hobbies as a way of forming multilateral motivation and maintaining mental vigor; - positive emotions from the environment at work; - the possibility of improving the content of the work by increasing the professional and personal level; - identification of possible areas of promotion, personal responsibility for career development; - open relationships with colleagues at work; - compulsory remuneration for good achievements in work, clear awareness of the possibilities of success. Question 34 1. The World Health Organization (WHO) defines health as a state of good physical, mental and social well-being and not merely the absence of disease or injury. Purposeful health care testifies to the ability and desire of the individual to be responsible for himself. The manager must take care of the health of the employees entrusted to him; do not entrust work that does not correspond to the state of their health. He is also responsible for being properly informed and following the safety regulations. 2. The development of physical form helps to strengthen the mental tone. People who actively practice health-improving exercises feel how physical fatigue contributes to brighter mental activity. The problem of our time is that the insufficient functioning and development of the entire human body (both the body and the brain) lead to premature wear and atrophy. 3. Mental health is ensured by proper mental health care. The deterioration of the mental state of a person is expressed in mental discomfort. Such a person "leaves reality", there is a danger of aggravating a mental disorder. The basis of human health is his mental balance, in which he is able to transmit and perceive feelings and experiences, work and enjoy the result achieved. Such a person bears losses more easily, since the rejection of something is also included in the concept of human life. In general, mental health implies the ability to maintain mental balance in all life situations. 4. Human relationships are crucial to mental consistency. Sufficient and trusting communication gives a person a sense of security and courage to embark on the implementation of any, even problematic plans. Good rest and sleep create not only mood, but also mental health, and hobbies and interesting leisure activities contribute to mental vigor. By reserving time for himself and his hobbies, a person has the opportunity to be distracted, take a break from work, get a charge of vivacity to continue his work activity. Question 35. Psychological factors. Perception 1. Motivated people are ready to take different actions depending on how they perceive the situation. The perception of an individual is characterized by the process of selecting, organizing and interpreting incoming information to create a meaningful picture of the situation that has arisen. The reason for the manifestation of a different reaction to the same stimulus may be: - selective perception; - selective distortion; - selective memory. 2. Every day, each person is faced with a huge number of irritants and is not able to perceive them all completely. For the advertiser, the problem arises of winning the necessary attention of the consumer, since the selective nature of people's perception is expressed in their tendency to notice: - what their needs are related to; - expected; - new and unusual. 3. Selective distortion is explained by the fact that people tend to transform and interpret information in such a way that it supports, rather than refutes, their established judgments and ideas. 4. Much of what a person learns, he simply forgets. He tends to remember only information that supports his beliefs and judgments. Question 36. Psychological factors. Learning, Persuasion and Attitude 1. The assimilation of incoming information is characterized by changes in the individual's behavior under the influence of his accumulated experience. This is because human behavior is largely learned. Theorists consider learning to be the result of the interaction of drives, strong and weak stimuli, responses, and reinforcement. 2. Belief - a mental characterization by an individual of something, based on real knowledge, opinion, or simply on faith. Persuasion can be accompanied by an emotional charge. Manufacturers and marketers should be interested in people's beliefs about specific products and services, their emerging images, on the basis of which they take actions. If some beliefs are wrong and prevent the purchase, the manufacturer needs to take steps to correct them. 3. Attitude - a stable assessment by an individual of an object or idea, formed on the basis of existing knowledge and feelings. The prevailing attitude to something allows a person to save physical and mental energy in such a way that he does not have to re-interpret something and react anew each time. That is why attitudes are difficult to change. The various relationships of the individual form a logically coherent structure in which a change in one element may require a complex restructuring of a number of others. Question 37, Purchasing decision process Passing through these stages indicates that the purchase process begins long before the act of sale and purchase, and its consequences manifest themselves over a long time. The model directs the marketing specialist's attention to the buying process as a whole, and not just to the decision-making stage. The purchase of goods is a consequence of the fact that the buyer feels the difference between his real and desired state and is aware of his problem or need. The need may be caused by internal stimuli. One of the usual human needs (hunger, thirst, sex) rises to a threshold limit and is formed into an impulse. From experience, a person knows how to cope with this impulse, and his motivation is oriented towards a class of objects that can satisfy the impulse that has arisen. The need can also be caused by external stimuli. For example, the sight and smell of freshly baked bread can arouse feelings of hunger and lead to an awareness of the need to satisfy the feeling that has arisen. The marketing specialist needs to identify the following circumstances that usually push a person to realize the problem: - what tangible needs or problems have arisen; - what caused their occurrence; - how they brought a person to a specific product. Question 38 1. The consumer may search for additional information if he does not find a product that is easily accessible and (or) capable of satisfying the need that has arisen. 2. In search of information about the product, the consumer can refer to the following sources: - from a personal environment - family, friends, neighbors, acquaintances; - commercial character - sellers, dealers; - from publicly available funds - the media; organizations involved in the study and classification of consumers; - from their own empirical experience - touch, study, use of goods. The relative influence of these sources of information varies depending on the product category and the nature of the buyer. 3. As a result of the collection of information, consumer awareness of the products available on the market and their properties is increased, and additional information helps to screen out a number of options from among those considered. The remainder constitutes the selection kit from which the buyer will make his final choice. In practice, the trading company must develop a marketing mix that incorporates consumer choice, including consumer awareness, into the package. It is also necessary to know the products of competitors and develop an argument that emphasizes the advantages of their products. Question 39 1. The consumer collects information in order to make a set for himself, from which the final choice is made. The question is how exactly the choice is made among several alternatives, how the buyer evaluates the information. 2. The consumer considers the product as a certain set of properties according to the following criteria (in addition to the price): - cameras: the quality of the resulting photographs, exposure range, dimensions; - hotels: location, cleanliness, view from the window; - dental elixir: color, effectiveness, taste, aroma; - bras: convenience, fit, durability, style; - lipstick: color, type of packaging, fat content, prestige, taste and aroma; - tires: safety, tread durability, smooth ride. The above properties are usually of interest to everyone, but to varying degrees; for each individual consumer, those properties of the product that are relevant to his need are relevant. 3. The consumer attaches importance to those properties of the product that he considers relevant to himself. It is possible to distinguish between the importance of a particular property and its visibility for the consumer, that is, the specificity of properties for the latter. A marketing specialist should not focus only on such subjective characteristics of goods, since the consumer could give them, for example, under the influence of a commercial offer in which they were mentioned. 4. The consumer tends to create a set of beliefs, according to which each individual brand is characterized by the degree of presence in it of each particular property. The set of beliefs about a particular product is known as brand image. The consumer's beliefs can range from knowledge of intrinsic properties from personal experience to knowledge resulting from selective perception, selective distortion, and selective memory. Question 40 1. Evaluation of options leads to a ranking of objects in the selection set. The consumer is formed the intention to make a purchase of the most preferred product. However, other factors may be involved: the attitude of other people and the impact of unforeseen circumstances. The degree to which a purchasing decision changes depending on the attitude of other people depends on: - the intensity of the negative or positive attitude of the other person to the preferred option; - willingness of the consumer to accept the wishes of another person. The intention is formed on the basis of family income, the price of the product, and the expected benefits from consumption. Unforeseen circumstances can arise suddenly and change the purchase intention at the very moment when the consumer is ready to act. Question 41 1. The degree of satisfaction with the purchased product is of interest to the marketing specialist. It is determined by the relationship between consumer expectations and the perceived performance of the product. If the product meets expectations, the consumer is satisfied; if it exceeds them, the consumer is very satisfied; if not, the consumer is dissatisfied. Expectations are formed on the basis of information received by the consumer from sellers, friends and other sources of information. The greater the gap between the expected and actual performance in the negative direction, the more acute the dissatisfaction of the buyer. 2. The degree of satisfaction with the purchased product will be reflected in the subsequent behavior of the consumer; he will choose the same item if necessary. In addition, a satisfied customer tends to share favorable product reviews with other people. A dissatisfied customer acts differently. He can refuse to use the product, return it to the seller or decide to purchase another product. 3. The marketing specialist should also be interested in what the consumer will eventually do with his product. The following alternatives are possible here: - the consumer gets rid of the goods for a while (rents or lends to someone); - the consumer gets rid of the product forever (sells, exchanges it for another product, throws it away); - the consumer keeps the product (uses it as intended; uses it in a new way, stores it in reserve). Question 42: The concept of a marketing information system 1. If in the XIX century. most small firms were able to collect marketing information, knowing their customers personally, then in the XNUMXth century. Three trends have intensified that have necessitated more and more benign marketing information: %/ shift from local marketing to nationwide marketing: firms are constantly expanding the geography of their sales, and their managers no longer know all the clients personally. You need to find some other ways to collect marketing information: - the transition from consumer needs to consumer needs: as their income increases, buyers become more selective in their choice of goods. It is becoming increasingly difficult for sellers to predict the reaction of buyers to various characteristics, design and other properties of goods and they are turning to market research; - the transition from competition in prices to non-price competition: sellers are increasingly using such marketing tools as assigning brand names to goods, individualization of goods, advertising and sales promotion (consumer credit, discount cards, etc.). They need information about how the market reacts to the use of these tools. 2. Marketers complain that they can't gather enough information. In an attempt to solve this problem, many firms develop special marketing information systems. The marketing information system is a permanent system of interaction between people, equipment and methodological techniques, designed to collect, classify, analyze, evaluate and disseminate relevant (timely and accurate) information for use by marketing specialists in order to improve planning, execution of marketing control over market events. . Question 43 1. Marketing research is a systematic collection, registration and analysis of data on goods and services. The main goal of marketing research is sufficient certainty and risk avoidance when making commercial decisions. The importance of conducting such research in shaping the marketing research mix arises quite often when decision makers cannot wait for information to arrive piecemeal. Comprehensive marketing research is carried out by the company itself or its implementation is ordered by specialized marketing firms. For marketing research to be effective, it: - should not be random; - should be systematic and cover as many different sources of information as possible; - should be applicable to any aspect of marketing that requires information for decision making. 2. The area of application of marketing research is practically unlimited, so let's highlight the types of research that are most common in world practice: - market research; - sales research; - economic analysis; - advertising research; - research of consumer properties of goods; - motivational analysis (study of consumer behavior). Most large foreign firms have their own marketing research departments. Among the employees of such departments are statisticians, psychologists, and sociologists. 3. The types of research carried out by these departments are diverse, and their field of activity is expanding, especially in the direction of international marketing research. Types of marketing research conducted by US firms Scope and type of research Percentage of firms conducting research 1. MARKETS AND SALES Measurements of potential market opportunities 93 Analysis of the distribution of market shares between firms 92 Studying the characteristics of the market 93 Sales analysis 89 Trial Marketing 54 2. COMMERCIAL ACTIVITY AND ITS ECONOMIC ANALYSIS Short term forecasting 85 Long-term forecasting 82 Studying business trends 86 Studying price policy 81 Study of the commodity nomenclature 51 Studying international markets 51 3. PRODUCT DEVELOPMENT Studying the reaction to a new product 84 Studying competitors' products 85 Product testing 75 4. ADVERTISING Studying the effectiveness of advertising 67 Exploring media 61 Research of advertising texts 49 Research of consumer motivations 48 Question 44 1. Any system for analyzing marketing information is based on a statistical bank and a bank of models. Statistical bank - a set of methods for statistical processing of information, as well as software and other tools designed to most fully reveal the interdependence within the data collection and establish the degree of their statistical reliability. The statistical bank allows you to answer the following questions: - what are the main variables that affect sales, and what is the significance of each of them; What happens to sales if you raise the price of a product by 10% and advertising costs by 20%? - what features are the most likely indicators that these consumers will buy my branded product, and not a competitor's product; - What are the best variables to segment my market, and how many segments exist. These methods of statistical processing of information are described in many normative sources. 2. Bank of models - a set of mathematical models consisting of a set of interdependent variables and contributing to the adoption of the most optimal decisions by marketing specialists. These models help answer questions like: "What if?" and "Which is better?" Over the past 20 years, scientists have created a huge number of model banks designed to help marketing executives better manage the activities of creating work plans and determining the sales territory, choosing the location of retail or wholesale outlets, etc. 3. Managers who resort to marketing research should be familiar enough with their specifics in order to be able to obtain the necessary information at an affordable price. Marketing research consists of five main stages: - identifying the problem and formulating the objectives of the study; - selection of sources of information; - collection of information; - analysis of the collected information; - presentation of the obtained results. Question 45 1. The marketing manager and the researcher must clearly identify the market research problem and set an appropriate research goal. For example, an airline marketing manager and a researcher agreed that the problem was that it was not getting enough passengers. Two problems follow from this conclusion: - how the passenger chooses an airline; - how to attract more passengers to flights on our planes. 2. The objectives of the study can be exploratory, that is, provide for the collection of some preliminary data that characterize the problem or help develop a hypothesis. Goals can be descriptive, that is, they can describe certain phenomena, for example, to find out the number of users of air transport or the number of those who have heard of a certain airline. Goals can be experimental, that is, they test a hypothesis about some kind of causal relationship, for example, that a $15 decrease in ticket prices will cause an increase in passenger traffic by at least 10%. Question 46 The marketing manager and the researcher must determine the type of information of interest to the customer and the most effective way to collect it. The researcher may collect secondary and/or primary data. Primary data is data collected for the first time for a specific purpose. Secondary data is data collected previously for other purposes. Primary data includes: internal documents (reports, accounts, accounting sheets, etc.); - publications of state institutions; - periodicals; - commercial information (on sales, circulation, etc.). Secondary data are more accessible and serve as a starting point for research. But if they cannot serve as the basis for the necessary information for various reasons (outdated, incomplete, unreliable data), the researcher will have to collect primary information. Question 47: Collection of primary data 1. Most marketing research involves the collection of primary data, which should not be limited, for example, to interviews. To collect primary data, it is necessary to draw up a special plan, which should take into account the following research factors: - methods; - tools as means; - sampling plan (unit, size, sampling procedure); - method of communication with the audience (telephone, mail, personal contact). 2. There are three methods for collecting primary data: - observation; - experiment; - interview. 3. One way to collect primary data is to directly observe people and situations. For example, airline researchers can hang out at airports, airline offices, and travel agencies and listen to what people have to say about different airlines. They may also notice how agents handle order fulfillment. They can fly the aircraft of the researched company and the aircraft of competitors in order to learn about the quality of service in flight and hear the comments of passengers. 4. Experimental studies require the selection of comparable groups of subjects, the creation of different environments for these groups, the control of variable components, and the establishment of the degree of significance of the observed differences. The purpose of such a study is to uncover causal relationships by screening out conflicting explanations of the observational results. For example, an airline researcher might use an experiment to answer the following questions: - will the creation of a new image of the company lead to a more positive attitude of the passengers of this company; - what would be the impact of providing first-class in-flight meals on repeat bookings for tickets; - what advertising approach would have a more beneficial effect on the company's trading performance; - to what extent the turnover would increase if children traveling with their parents were allowed to fly for free. 5. The survey is somewhere in the middle between observation and experiment. Observation is best for exploratory research, experiment for causation, and interviewing is most beneficial for descriptive research. Firms conduct surveys to obtain information about people's knowledge, beliefs, and preferences; the degree of their satisfaction, as well as to measure the strength of their position in the eyes of the audience. Question 48. Research tools. Questionnaire 1. When collecting primary data, the researcher can use the following research tools (means): - questionnaires; - mechanical devices. 2. The questionnaire is the most common research tool for collecting primary data. In a broad sense, a questionnaire is a series of questions to which the respondent must provide answers. The questionnaire is a very flexible tool in the sense that questions can be asked in a variety of ways. The questionnaire requires careful development, testing and elimination of identified shortcomings before its widespread use. In a carelessly prepared questionnaire, you can always find a number of errors. 3. During the development of the questionnaire, the researcher thoughtfully selects the questions to be asked; chooses the form of these questions, their wording and sequence. The most common mistakes in the preparation of questionnaires are the following: - questions that cannot be answered; - questions that respondents do not want to answer; - questions that do not require an answer; - No questions to be answered. 4. Each question must be justified by the need to obtain information of interest. Questions of mere idle interest, other optional questions should be omitted. The form of the question may be as follows: - closed; - open. Closed-ended questions are answered by choosing one of the proposed answers, which are easier to interpret and tabulate. Respondents answer open-ended questions in their own words. Such a survey allows you to directly establish what people think without limiting any framework of possible options and is useful in the exploratory phase of the study. 5. When formulating a question, the researcher should use simple, unambiguous phrases that do not affect the reliability of the answer. The order of the questions is also important. The first of these should arouse the interest of the respondents. Difficult or personal questions should be asked before the interviewees have time to withdraw into themselves. Question 49 Question types The questionnaire consists of the following parts: - introductory (topic of the survey; details of the company that conducts the survey, etc.); - main; - containing information about the person being interviewed. According to the content, the questions are divided into those affecting: - facts and actions; - opinions and intentions. Questions may take the following form: - linear (in line); - in the form of a table (convenient for the interviewer). Depending on the function, the questions are divided into: - establishing contact; - control; - filtering (the respondents are divided into certain groups according to certain characteristics); - questions-lists. Questions on the degree of freedom are divided into: - open; - closed; - semi-open; - scale questions. Question 50: In order to effectively conduct a questionnaire survey, an action plan is drawn up, providing for: - the purpose of the survey; - solution of financing issues; - development of hypotheses; - preparation of the questionnaire form and its approbation; - definition of respondents; - production of questionnaire forms; - selection of special employees - registrars of questionnaires and their training; - conducting a survey; - processing of received materials and their analysis; - report on the results of the survey to management. Question 51: 1. In addition to the questionnaire, in some cases, a galvanometer can be used, which captures the slightest sweat that accompanies emotional arousal. It is used to measure the intensity of the respondent's feelings when exposed to a particular advertisement or image. 2. The tachistoscope exposes an advertisement for the respondent in the shutter speed interval from less than one hundredth of a second. After each display, the respondent will give a description of everything that he could remember. Other special devices are also used, for example, to fix eye movements in order to determine the area of an advertising image that the eye falls on. 3. An audiometer is an electronic device that records information about all its activations and channels to which it is tuned. It connects to the TV set in the respondents' homes. Question 52 1. Sample - part of the population, which conditionally represents the population as a whole. The marketing researcher, when drawing up a sampling plan, must take into account the tasks facing him. 2. The marketing researcher must first determine the circle of interviewees. To do this, he must decide what kind of information he needs and who might have it. Secondly, the number of people to be interviewed is determined; moreover, to obtain accurate answers, the researcher may limit himself to a survey of no more than 1% of the population. Thirdly, the question of how the members of the sample should be selected must be decided. This may be a random selection method or some other selection (for example, on the basis of belonging to a group or category). Question 53 For the fastest collection of information, a telephone interview is suitable. The advantage of this method of communication is the ability to clarify questions that are incomprehensible to the respondent. Disadvantages - the possibility of polling only within the telephone network, that is, only those who have a telephone, and the conversation is limited in time. The advantages of a questionnaire sent by mail - contact with persons who either do not agree to a personal interview, or their answers may be affected by the influence of the interviewer; disadvantages - the percentage of due completion and the return rate of such questionnaires are usually low. A personal interview is the most common and expensive way to conduct a survey. The interviewer can not only ask more questions, but also supplement the results of the conversation with his personal observations. The face-to-face interview requires careful organizational planning and control. Question 54 1. The concept of the competitiveness of a company is a set of characteristics that determine the economic position of a company in a particular market. The level of competitiveness of a company is determined by various factors, among which the scientific and technical level of the company's production and the degree of its organizational excellence are important (for more details, see Shevchuk D.A., Shevchuk D.A. How to draw up a business plan: the first step to your business. - M .: AST: Astrel, 2008). The market leader is the product whose ratio of useful effect (P) to the cost of its acquisition and use (C) is maximum compared to other identical products. The competitiveness condition can be represented by the following formula: KST \uXNUMXd R / C \uXNUMXd\uXNUMXe max 1. Determination of the potential CST of a particular product determines its comparison with other products on the basis of a series of calculations and studies on the parameters to be evaluated and compared. Some of these parameters should reflect the consumer properties of the product (technical, ergonomic, aesthetic, constructive), and some should characterize its economic properties. The latter together constitute the consumption price (C). Then it is advisable to determine the weight of each of the analyzed indicators. Question 55 1. The novelty of a product has the following levels: - pioneer (product released for the first time); - improved (has the best consumer properties); - cheaper (has a lower price without compromising quality). 2. When developing new products and services, the firm has the following options: - order information about new services of other companies and use them; - develop a new product or service independently; - improvement of the product in terms of design or design; - attract other firms to cooperate in the development of a new product. 3. The product development process includes the following steps: - suggestion of ideas; - selection of a suitable option; - development of a model of a new product and its verification; - development of a marketing strategy; - analysis of production and marketing opportunities; - testing of goods in market conditions; - Deployment of the production complex. Developing a marketing strategy includes three parts: - the first part - the study of the size, structure and behavior of the target market, indicators of sales, profits and market share for the coming years; - the second part - general information about the price, approach to distribution; - the third part - long-term goals in terms of sales and profits, a long-term strategic approach to the formation of the marketing mix. 4. There are three stages in the development of a new product: - idea (idea); - real performance (packaging, brand name, properties and quality, external design); - reinforcement (deliveries on credit, after-sales service, installation, guarantees). 5. Assortment policy - determination of the most preferred set of goods for the market. The development of goods, supported by the assortment policy, ensures the economic efficiency of the company as a whole. Question 56. Marketing strategy. The concept and basic requirements for its formation 1. The marketing strategy involves the definition of the structure of marketing and its functions in order to introduce it to certain target markets with the subsequent satisfaction of existing needs. The marketing structure should reflect: - product planning; - sales and promotion of products; - pricing policy. 2. The main requirements for the formation of a marketing strategy are its maximum clarity and feasibility. Thus, the planning of new products should be accompanied by the establishment of priorities for further activities (for more details, see Shevchuk D.A. How to draw up a business plan: the first step towards your business. - M .: AST: Astrel, 2008). Issues of distribution of responsibility, timing of marketing activities and production, as well as promotion and training needs of staff must be resolved. An example of a limited, unplanned marketing strategy is the following: to increase product N's market share, additional funds will be invested in design and advertising. A good strategy should contain more specific and clear lines of action. For example, the market share of good N must be increased from 2% to 3% within 6 months. To do this, the following measures can be taken: - development of new, more attractive and functional packaging; - expansion of advertising through the involvement of 150 major consumers; - reconstruction of the production of goods in order to improve its external type without increasing costs. 3. Often a firm chooses a strategy from several possible options. For example, it is necessary to increase the market share of a product to 40%. The following directions are possible here: - creating a more favorable perception of the product through persuasive advertising; - increase in the number of sales personnel; - proposal of new product models; - price reduction and expansion of the sales network. Each of the alternatives, as well as their possible combination and coordination, open up certain opportunities for marketers. For example, a price-cutting strategy that is easier to create new models and is available to competitors can lead to a price war and negatively affect bottom line. 4. There are the following approaches to planning a marketing strategy: - opportunity matrix by product/market; - Matrix "Boston Consulting Group"; - impact of market strategy on profit (PIMS); - Porter's general strategic model. Within the framework of these approaches, the firm, having assessed the potential of its production capabilities, develops appropriate marketing strategies. Question 57 1. The matrix of opportunities for goods (markets) allows you to use the following marketing strategies in order to maintain and (or) increase sales: - market penetration; - market development; - product development; - diversification. The choice of one and (or) another strategy depends on the degree of market saturation and the company's ability to constantly update production. 2. The market penetration strategy is justified at the stage of market formation. A firm can increase sales of its products in existing markets by aggressively promoting them and setting competitive prices. 3. A market development strategy is used to increase sales of existing products in markets and/or attract consumers to use existing products in new ways. It may involve penetrating into new geographic markets; entering new market segments, the demand for which is not yet satisfied; offering new existing products; use of new methods of distribution and marketing; intensification of efforts to promote goods. 4. A product development strategy is effective if the firm has a number of successful brands and its products are in demand by consumers. The company develops new models and innovations, improves the quality of existing products for existing markets. The effectiveness of the implementation of new products is ensured by the well-known reputation of the company. 5. The diversification strategy is used to avoid the limits of one assortment group of goods. The company is focused on new products and markets. The goals of distribution, marketing and promotion are different from those previously set. Question 58 The Boston Consulting Group matrix is used to classify product groups by their market share relative to major competitors and annual industry growth rates. The Boston Consulting Group matrix allows you to determine: - leading division of the company; - the dynamics of its markets (development, stabilization or reduction). This matrix is based on the assumption of the following relationship: the higher the share of the firm's units in the market, the lower the relative costs and the higher the profit. The matrix includes four types of strategy types: - "star"; - "Milch cow"; - "difficult children"; - "dogs". Zvezda is used primarily in a growing industry to support a firm's distinctive advantage in an increasingly competitive environment. Profits here require a large amount of resources to finance continued growth. Price cuts, significant advertising, and changes in product and/or wider geographic distribution help maintain and expand market share. The development of the industry will transform the "star" into a "cash cow". "Cash cow" is characterized by the leading position of the industry. Since there is a certain loyal following among consumers and sales are relatively stable, the income of the cash cow exceeds the costs necessary to maintain its market share, and their surplus is used to support the growth of other departments of the company. The marketing strategy includes reminder advertising, discounts, maintaining distribution channels, and offering new options to encourage repeat purchases. Problem Child has little market impact in an emerging industry. There are no distinctive advantages in the market, and the leading position is occupied by competitors' products. To maintain or increase market share, significant funds are needed, the sources of which must be developed (promotion to the market, new distribution channels, etc.) or exit the market. The choice of strategy depends on the firm's ability to compete successfully with weak consumer support. "Dog" is notable for its limited sales volume in a mature or declining industry. Here, the following options are possible: either try to enter a specialized market, or profit by liquidating to a minimum of providing maintenance, or leave the market. Question 59 1. The Impact of Market Strategy on Profits (PIMS) program involves collecting data from a range of corporations in order to establish the relationship between various economic parameters and two characteristics of the organization's performance: return on investment and cash flow. Information is collected by divisions and aggregated by industry. By analyzing general industry data, a firm can determine the impact of various marketing strategies on its economic performance. 2. According to a study conducted in 1983 in the United States, the following marketing-related factors most influenced income: - market share relative to the top three competitors; - the value added by the company; - industry growth; - product quality; - level of product novelty/differentiation; - vertical integration of the company (possession of subsequent distribution channels). In terms of cash flow, PIMS data suggests that a relatively high share in emerging markets improves cash flow, but significant investment in such presence absorbs most of it. These conclusions are very similar to the results given by the Boston Consulting Group matrix. 3. Information is sent to participating companies in the following forms: - standard messages - information about the average income from investments, competition, production technology and cost structure; - strategy review messages - describing the impact of changes in strategy on short- and long-term investment returns and cash flows; - messages about optimal strategies - a presentation of a strategy that maximizes results; - comparative messages - analysis of the tactics of similar competitors, both successful and unsuccessful. Question 60: Porter's general strategic model 1. Porter's general strategic model adheres to two concepts of marketing planning and alternatives: target market selection (within the entire industry or individual segments) and strategic advantage (uniqueness or price). Porter's strategic model includes and identifies cost advantages, differentiation, and concentration. 2. The cost advantage strategy focuses the firm on a wide market, offering a product in large quantities. Through mass production, it can minimize unit costs and charge low prices. This allows you to have a higher share of profits, respond in a timely manner to rising costs and attract consumers who are guided by the price level. 3. The cost differentiation strategy focuses the company on a large market, offering an eye-catching, attractive product, unique in design, a number of characteristics, availability, reliability, etc. Here, the price does not play such a decisive role and consumers have a fairly favorable attitude towards the brand . 4. As part of the concentration strategy, the firm targets a specific market segment by setting low prices or putting forward a unique offer. It can control costs by focusing on a few key products for specific customers and gaining a distinctive reputation that competitors cannot. 5. According to Porter's model, the relationship between market share and profitability is U-shaped. Thus, a firm with a small market share may do well by concentrating on any one competitive "niche", even if its overall market share is negligible. A firm with a large market share achieves profits through overall cost advantages or a differentiated strategy. However, there is a risk of getting stuck in the middle if there is no effective and unique product or overall cost advantage. Question 61. The concept of advertising. Directions of advertising activity 1. Advertising is a type of activity or products produced as a result of it, the purpose of which is the sale of goods or the solution of other problems through the dissemination of paid information that can have an enhanced impact on the mass or individual consciousness and cause a given consumer reaction (for more details, see Shevchuk D.A. (Advertising: Lecture Notes, Rostov-on-Don: Phoenix, 2007). 2. In industrialized countries, the concept of "advertising" (advertising) does not apply to activities that promote sales: - "sales promotion" (sales promotion) - prestigious events with the aim of winning a benevolent attitude of the public; - "public relations" (public relations) - the formation of a disposing image of an object (subject) in public opinion; - "direct-maketin" (direct-marketing) - a special area of advertising activity that has recently been rapidly developing to establish directed links between the manufacturer and the consumer. 3. In Russia, the concept of advertising is interpreted more broadly. These are exhibition events, and commercial seminars, and packaging, and printed materials, and other means of stimulating trade activities. The following areas of advertising can be distinguished: - international - to foreign markets, taking into account their characteristics; - foreign economic - to foreign markets, taking into account the prevailing domestic practice; - domestic - to the domestic market. 4. Let's highlight the differences between advertising in the media and sales promotion, public relations and direct marketing. Advertising, as a rule, is created and distributed by an advertising agency, informs about the manufacturer or its product, forms and maintains their image (image) and is paid by the advertiser in accordance with the tariffs for placing advertising messages in the media. An advertising agency's income is usually based on fees and commissions. Question 62: 1. Sales promotion - activities for the implementation of commercial and (or) creative ideas that stimulate the sale of goods or services of the advertiser as soon as possible. For example, with the help of an attractive product packaging design (images of famous cartoon characters, prestigious car brands). The long-term goal is to create in the mind of the consumer a greater value of branded goods marked with the appropriate trademark. Short-term - the formation of additional value of the product for the consumer (added value [added value]). Payment for activities in the field of sales promotion is carried out on the basis of the time spent by experts, fees for creative work and tariffs for technical work. 2. Public relations relies on advertising through the mass media, aimed at winning a favorable attitude of the population towards certain product groups and firms producing them, and involves the receipt of advertising agencies income from advertisers in the form of fees that pay for the time spent on the execution of their orders. 3. Direct marketing - an activity based on constantly maintained relationships with individual consumers or firms - potential buyers, which is carried out by direct mail (direct mail [direct mail]) or through highly specialized advertising distribution media. In this case, the income of the advertising agency is formed from commissions and depends on the amounts spent by the client. 4. The differences between the above types of advertising activities are also in their goals: - advertising - the formation of the image of the company, product; informing buyers about them; - sales promotion - encouragement to make purchases, development of a commodity-producing network; - public relations - achieving a stable public reputation of the company; - direct marketing - establishing long-term relationships between the producer and the consumer. Question 63 1. To determine the essence of the advertising process, it is necessary to analyze its basic technology and divide it into separate elements that allow revealing the interaction of participants in this process at various stages and levels. Advertiser - a person who orders and pays for advertising. The main functions of the advertiser are: - identification of goods, including export ones, in need of advertising; - cooperation in establishing the framework for advertising these products; - participation in the preparation of a plan for the creation of promotional products and promotional activities; - determination, together with the advertising agency, of the budget for the creation of advertising and promotional events; - signing an agreement with the agency for the creation of advertising materials, placement of advertising in the means of its distribution, holding advertising events, etc.; - provision of source materials, technical and factual data on goods or services; - approval of layouts of advertising materials and originals of advertising; - payment for the work of the performer. 2. An advertising agency, in addition to the above works performed jointly with advertisers, performs: - creative and performing activities to create promotional materials on the orders of the advertiser; - production of advertising originals; - conducting complex advertising campaigns and events; - interaction with production bases, other advertising and publishing firms, including foreign ones; - Communication with means of distribution of advertising; - Controlling the passage and quality of execution of orders, etc. 3. Advertising medium is a channel for the passage of information to consumers. In the advertising process, the means of distribution advertising is usually provided by the owning organization. 4. Advertising consumer - a subject to whom an advertising message is directed in order to induce him to perform a certain action in which the advertiser is interested. 5. Until recently, the consumer was assigned the passive role of an element of the audience exposed to advertising. Now the consumer becomes an active participant in the advertising process, acting as a feedback generator. So, of his own free will, he requests from an advertising agency, advertising medium or advertiser the information he needs. In the advertising process involved: - organizations regulating advertising activities at the state (government agencies) and public (associations and other similar organizations) levels; - production, creative and research organizations operating in the field of advertising. Marketing research, strategic planning and tactical decision making, dictated by the advertiser's sales goals and the general situation in a particular market, contribute to an effective advertising process. Question 64 1. A characteristic feature of modern advertising is that, as a result of involvement in the management of production and marketing activities of industrial and service firms, advertising has become an integral and active part of an integrated marketing system. The level of development of this system determines the quality and efficiency of the manufacturer's advertising and information activities and its compliance with the new requirements of the world market. 2. A sharp complication of sales and increased competition in the 70s. gave advertising the importance of a competitive factor. Moreover, advertising has become more important than achieving superiority in the market through the introduction of technical innovations or reducing the cost of production. This statement is obvious for the marketing activities of the company, with the exception of technical operations directly related to the production, transportation, sale of goods, etc. 3. The main types of marketing activities include: - research on the consumer, product and market; - research and development (R&D), coordinated with marketing activities; - planning; - price policy; - packaging; - Advertising activity; - sales activities (work with the staff of the distribution network, trainings, control, organization of special sales systems, measures to optimize sales in the field, etc.); - development of a system for distributing goods to sales outlets; - international operations; - after-sales service. Question 65 Price and packaging actively influence the market. Consumers are informed about the price, in particular through advertising, and the packaging itself bears advertising elements. The aggravation of competition leads to the intensification of marketing activities, that is, a greater investment of material resources and the inclusion of intellectual potential, especially export-oriented firms. Marketing, even taking into account the constant development of activity and flexibility, is a closed system in which information is exchanged both with the internal and external spheres of the manufacturer. Advertising is a prerequisite for communication with the market and an integral part of the marketing system. Therefore, it becomes necessary to determine its functions, the mechanism of interaction with other elements of the system, its place in their hierarchy, and therefore, to find ways for optimal management of advertising activities. Advertising has a variety of forms, but its main, traditional purpose is to ensure the sale of goods and profit to the advertiser. Forming a high consumer demand, stimulating the sale of goods, and hence the turnover of capital, advertising performs an economic function in the market. Providing consumers with a directed flow of information about the manufacturer and its products, in particular their consumer value, advertising performs an information function on the market. The communication function of advertising is expressed in the fact that with the help of questionnaires, surveys, opinion collection, analysis of the process of selling goods used in the process of studying advertising activities, feedback is maintained with the market and the consumer. The controlling and corrective functions of advertising are manifested in the ability to control the promotion of products on the market, create and consolidate a stable system of consumer preferences for them, if necessary, quickly adjust the process of marketing and advertising activities. Question 66 1. Advertising of fixed assets (equipment) is focused on a narrow circle of buyers and attaches great importance to technical information, as well as giving a beautiful modern form of equipment - design. Advertising of fixed assets is based on the study of market needs and is addressed to manufacturing enterprises, plants, factories, while advertising of consumer goods is directed directly to the consumer. The foregoing, however, does not allow us to say that firms make their decisions more rationally and deliberately than the usual "man in the street." 2. Sources of information for this type of advertising are: - general directories and directories (for example, ABC-Europe Production); - lists of members of chambers of commerce and industry unions (for example, in Germany - "Industrieverbaende", in Austria - "Fachverbaende"); - disseminated information materials (booklets, newsletters, etc.); - services of consulting firms (for example, recommendations of consulting companies to use the services of certain firms for doing business in an unfamiliar country); - information obtained from special congresses, symposiums and meetings. Question 67: 1. The concept of advertising provides for various activities of the enterprise in the form of advertising: - for manufactured products and their use; - the enterprise itself; - open (direct); - hidden (indirect). For example, if a certain brand of a product is shown in a film or if a positive article is placed in the press about the activities of the enterprise and the quality of its products; - aimed at expanding the sale of goods, etc. Advertising can include all measures, the adoption of which directly or indirectly contributes to the achievement of the goal of the enterprise. The most widespread use of advertising is in the marketing of consumer goods. 2. Advertising activities are divided on the basis of the following goals: - solution of intra-company issues; - creation of prestige of the enterprise in society ("public relations"); - expansion of sales. Question 68 1. One of the main tasks of intra-company advertising is to form employees' confidence in the success of their own enterprise, a sense of close relationship with its fate. The higher the willingness of employees to take responsibility and make independent decisions, the lower the level of need for functional units of the organizational structure of the enterprise and the less unnecessary red tape and losses. 2. In order for intra-company advertising to be successful, the following conditions must be met: - to be able to independently make the decisions necessary for their activities for each section of the enterprise, the responsibility center; - be responsible for the decisions made. The fulfillment of these conditions contributes to the emergence of employee satisfaction from their work and, consequently, active promotion and advertising of this company in society. 3. The means of intra-company advertising are: - high organization of the structure of the enterprise and respectful relationships between management and employees; - social benefits and guarantees for employees; - internal company newspaper; - worthy behavior of the leadership in society. When considering advertising in this aspect, one should always remember that each employee of the enterprise is both a part of society and a potential client at the same time. 4. Advertising in order to create the prestige of the enterprise in society ('PUBLIC RELATIONS' [public relations]) is carried out in large enterprises through special departments and is in close connection with intra-company advertising. Such advertising uses the following means: - media coverage of the company's activities in a favorable light; - enterprise sponsorship; - Participation of enterprise managers in the public life of the country. Question 69 1. Negative demand is observed in the market if most of it does not accept goods (services) and even agrees to certain costs in order to avoid it. Thus, people may have negative demand for vaccinations, dental procedures, etc. Employers - for hiring former prisoners and alcoholics. Here the task of marketing is to determine the reasons for such hostility and change the negative attitude of the market through reworking the product, lowering prices, and more active stimulation. 2. The absence of demand is observed in the market if the target consumers do not need the product or are indifferent to it. So, farmers may not be interested in new agricultural technology, and college students may not be interested in learning a foreign language. The task of marketing is to show the benefits of a product as a way to meet the natural needs and interests of a person. 3. Latent demand occurs when consumers have a strong desire that cannot be satisfied with the goods and services available on the market. Such demand may be, for example, for safe residential areas, more fuel-efficient cars. In this case, the task of marketing is to estimate the size of the potential market and create effective products and services that can satisfy the demand. 4. Falling demand for a particular type of goods sooner or later is observed by any organization. Here the task of marketing is to find the reasons for the fall in demand and ways to increase it through the study of market trends. Demand can be increased by entering other markets, changing the characteristics of the product, establishing more effective relationships with the consumer. 5. Irregular demand is justified by the fact that for many firms the sale of goods or services is seasonal, daily and even hourly, which causes problems of overload and underutilization of production capacities. Fluctuations in the distribution of demand over time can be smoothed out by developing flexible prices, incentives and other incentives through marketing. 6. Full demand is observed in the market if the organization is satisfied with its trade turnover. The task of marketing is to maintain such a level of demand both when needs change and when competition increases. 7. Excessive demand may arise if an organization is unable to produce the required volume of a product for which there is a high demand. The task of marketing (referred to in this case as "demarketing") is to find ways to temporarily or permanently reduce demand. 8. Irrational demand is introduced for goods that are harmful to health. The task of marketing is to cause the refusal of the consumption of such goods, sharply raising prices, limiting the availability of goods. Question 70 1. Using the possibilities of directed influence on certain categories of buyers, advertising increasingly performs the function of demand management. This function is becoming a hallmark of modern advertising as an integral part of the marketing system. 1. The practice of Western countries shows that at the micro level, consumer demand can be changed by marketing activities, including targeted advertising, to the extent that it corresponds to the actual production capabilities of the company or its marketing policy. 3. If the demand is negative, then conversion marketing is needed; missing demand - promotional marketing; potential demand arises through developmental marketing; declining - remarketing; hesitant - synchromarketing; optimal - supportive marketing; excessive causes the need for demarketing; finally, irrational demand nullifies counter-marketing. Question 71 1. The tasks associated with increasing demand and managing it are first solved in relation to a separate market segment or their combination. Segmentation is the purposeful separation of a part of the market with the aim of more complete penetration. Segmentation is an effective way to "rejuvenate" products that are entering a phase of declining demand and give them a new vital impulse in the market. 2. The obvious transition from marketing to targeting (target [tagit] - goal) means in practice the transition from prompt response to market signals to active implementation of goods on the market. In this system, a special management role is assigned to control and correction, through which errors are identified and corrected, and they make it possible to respond in time to unforeseen or sudden circumstances. Here, advertising acts as a corrective tool and provides the ability to perform control functions. 3. The reaction of the market to the marketing of the manufacturer (exporter) is a necessary condition for the possibility of monitoring its results. Thus, advertising performs the functions of not only a regulator, but also an indicator of the progress of the marketing and export activities of the advertiser. The market, having received information about the actions of the manufacturer from various levels of the distribution network - from sales agents to consumers, as well as from specialized organizations that provide research on factors that directly or indirectly affect sales and recommendations - generates encouraging or alarming information. Thus, the manufacturer is informed both about the controlled factors (internal) and about the facts that arise as a result of the impact of the external environment in which marketing and, as its integral part, advertising activities are organized. The latter - uncontrollable factors are the result of political, economic, legal and other factors existing in a particular country and must be taken into account when developing advertising campaigns. All information about the market and its reactions is accumulated in the manufacturer's marketing service or in a specialized marketing organization and is the basis for the development of new and correction of existing means of advertising campaigns, as well as samples of promotional products for certain products. 4. The "second ring" of marketing, more complex, carries out information communications with all levels of the company's sales network and with specialized organizations that study the reaction of consumers and competitors. Here, the controlling system of "feedback" manifests itself most fully, allowing timely adjustments to be made to the strategic and tactical actions of the manufacturer. A constant flow of information about the market reaction to advertising actions gives the manufacturer the opportunity to properly target production to sell goods in the planned volumes, controlling the course of advertising campaigns and making the necessary adjustments to them, that is, effectively manage not only advertising, but also marketing activities. 5. The "third ring" of marketing is the movement of advertising information deep into the consumer market and obtaining, by stimulating "feedback", data on its part in which the product being sold is in demand. The identification of a market segment, which is a collection of consumers with similar socio-demographic characteristics, is called segmentation. 6. "Feedback" of all "three rings" contributes to the flow of information about the state, changes and market trends. In a constantly changing market environment, when even small errors lead to large losses, the manufacturer must use this information correctly. Question 72 1. Advertising in the media (media) includes advertising in the press (newspapers and magazines), on radio, television and on standard outdoor advertising billboards. 2. Advertising in the most widely read publications and popular programs is the highest paid. Therefore, saving on it, the advertiser risks losing some of the consumers. The form and methods of advertising appeal must correspond to the culture and worldview of the advertising audience. Creative approaches here can be very different. So, when advertising consumer goods, as a rule, they affect the emotional perception of the buyer, and when advertising industrial products - on the rational one. 3. The effectiveness of advertising is possible subject to the following requirements: - a clear formulation of the market position of the product, that is, information about the specifics of its use, differences from competitors' products; - demonstration to the consumer of benefits from acquisition of the goods; - original and easy-to-perceive advertising idea; - the image of the product thought out in detail - a stereotype that increases it value in the eyes of consumers; - emphasis on high quality, new unique features and properties of the product; - originality; - targeting consumer demand; - to attract attention; - suggesting what is important to the consumer, and addressing him directly. 4. Advertising in the media is accessible to a wide range of the population and is therefore appropriate for consumer goods and services and mass demand. When it comes to the choice of media, the main pros and cons of making alternative decisions are: - targeting those groups of the population that are potentially interested in the advertised product; - the popularity of the selected publications or programs, their circulation or audience; - the level of tariffs for advertising space and airtime; - geography of distribution; - features of specific means of advertising distribution. The complex of advertisements in the press, on radio, television, on billboards of outdoor advertising is built on the same advertising ideas and creative finds so that the possibilities of each advertising medium complement each other. Question 73 1. Advertising in newspapers and magazines has become widespread and, in terms of costs, the quality of reproduction of advertising originals, is second only to advertising on television. 2. The specifics of advertising in the press involves the following approaches to its creation and placement: - the title should attract the consumer with new information, argumentation and product name; - you should not avoid a large number of words if they all reflect the essence of the matter, since a long title works even better than a short one; - it is better to do without negative turns, which may remain in the memory of the consumer and be associated with the subject of advertising; - it is necessary to use the words "free", "novelty", etc., which have a positive effect on everyone; - the presence of intrigue in the illustrations; - photographs are preferable to drawings; - a simple layout with one large illustration of a magazine page format - ideal for an advertisement in the press; - it is advisable to use the inscriptions under the picture - they will definitely be read; - no need to avoid long texts, because if the consumer is interested in more detailed information, then he, attracted by the headline, will read the entire text; - the text should be easy to understand, based on real facts, and not on allegations; - trust is caused by a photo or text that reflects a picture of real life; eyewitness accounts, authoritative experts; - do not print light text on a dark background - it is difficult to read. Question 74 1. The advantages of radio over other media are as follows: - round-the-clock broadcasting; - variety of programs; - wide use; - efficiency; - affordability. The disadvantages of radio over other media are as follows: - vision does not participate in the process of perception, through which a person receives up to 90% of information; - complicates the establishment of two-way communication with the consumer. Often he does not have a pen, pencil, paper at hand to write down the data transmitted in the ad. 2. Radio advertising will be effective if: - activates the imagination of listeners; - accompanied by a memorable sound, melody; - in theory - concise and clearly expressed; - is able to immediately interest the listener, otherwise he may switch to another program; - accompanied by the participation of famous people; - use "prime time" - the time when the number of listeners is greatest; - in parallel, an advertising campaign is being conducted on television using the same call signs, melodies, texts, characters; - evaluated not by the written text, but by listening; - corresponds to the context of the transmission in which they are included. Question 75 1. Television ads usually include a color image with motion and sound dynamics, and therefore are more effective in terms of impact on the audience than ads in other media. In addition, television advertising is interesting, informative, spectacular, especially if based on computer graphics. Television enables large-scale advertising of consumer goods. 2. The disadvantage of television advertising is the need to focus the attention of a potential consumer on the screen, otherwise the advertising message will not be perceived by him. Television is ineffective for advertising manufactured goods. 3, TV advertising will be effective if: - interesting and at the same time visually clear and clear; - will attract attention in the first seconds, otherwise the interest will disappear; - does not make you think, but helps to immediately perceive its essence; - the plot is built not around an inanimate object, but around a person using it; - avoid verbosity - every word should work. Question 76: 1. Outdoor advertising, which includes billboard posters, is usually placed along busy highways and in crowded places. Such advertising is needed to inform consumers about firms or products that they already know, or to indicate places where they can make the purchases they need or get the appropriate service. 2. An advertisement in outdoor advertising is short and does not inform the consumer in full, therefore, acquaintance of potential consumers with new products with the help of this media is not effective enough. Outdoor advertising can be presented in the form of a large-sized poster, electrified or gas light panel. The size and shape of the scoreboard can be made to order. 3. Outdoor advertising will be effective if: - instantly grasped and remembered; - simple and poster throw; - one illustration, and does not contain more than 7 words; - the font is simple and clear, readable from a distance of 30 - 50 m; - the color scale does not strain eyesight; - contains the details of the nearest sales and service points where you can purchase the advertised product or service; - includes elements of television advertising; - perceived in any weather and not obscured by buildings, etc. Question 77 1. Sales promotion - marketing activity, known as "sales promotion", has two directions: - the first is to stimulate the sale or services offered by the advertiser by activating the commodity distribution network: commercial agents, wholesale buyers, retailers and other persons; - the second - work with the consumer. 2. The main means of sales promotion include: exhibitions, brochures, catalogs, tables, diagrams, diagrams, calendars, souvenirs; advertising elements placed inside the product packaging; use of direct mail, presentations, stickers, posters, etc. 3. The effectiveness of sales promotion activities depends on the degree of individualization of work with consumers, the level of persuasion, repeatability and expressiveness of advertising. In the process of organizing and conducting these events, several tasks are solved: - assigning responsibility to specific persons; - statement of purpose; - an organization that allows you to support complex advertising campaigns, to be coordinated with other types of advertising to achieve goals together. Question 78 Public relations events 1. At present, the importance of the public reputation of producers of goods and services, especially re-imports, has increased in the world market. Competition has led to a leveling of physical and technological differences between goods, especially industrial ones. The buyer began to pay special attention to enterprise, reliability, efficiency and other intangible factors that form the prestige of the supplier. 2. When organizing the sale of goods, especially those of mass demand, advertising cannot be effective if it is limited to information about only one product. A background conducive to the perception of advertising is needed, that is, sufficient prestige of the advertising offer is preliminarily provided. It is formed through promotional activities at the institutional (country), corporate (company) levels, as well as at the product level. 3. Public relations promotional activities are aimed at winning a benevolent attitude of the public towards the country, the industry, the company and its products as a whole, that is, precisely at gaining public reputation. 4. The quality and technical level of goods are the most important factors in the prestige of the company and are used as the most important arguments in the creation of corporate advertising materials. The high authority of the manufacturer is created on the basis of information about its leading position in the market. Question 79 1. In the conditions of constant updating of the product range, a large-scale transition from creating an image of a specific product to a collective image of product families is especially noticeable. The latter is, as it were, an offshoot of the image of the manufacturer - a symbol of a higher order. A familiar sign for the consumer - the emblem of a product or company - ensures the continuity of a benevolent attitude towards specific goods that change over time. Trademark with high advertising power. allows you to reflect the originality, quality and (or) other consumer properties of the goods. 2. The associative capacity of a trademark is understood as its ability to reflect certain relationships of properties and contrasts due to the use of specially selected or randomly found verbal or visual elements in phrases or graphic symbols. 3. Trademark in export activities is of great importance. It becomes a guarantor of the quality of the goods, so labeled goods are usually sold at higher prices than unmarked ones. There is a direct relationship between the share of a product on the market and how well known to consumers its trademark is and what percentage of additional profit it gives. Both of these indicators are usually high for branded goods of the largest mass-producing corporations. Trademark competition is fierce on the global market. At the same time, many domestic exporters have not yet appreciated the high prestige and significance of their trademarks (for more details, see Shevchuk D.A. Creating your own company: Professional approach. - M .: GrossMedia: ROSBUH, 2007). 4. Another direction of advertising activity is sponsorship, that is, financing of various sports, social events, scientific expeditions, mass shows, charity events, etc., and advertising of goods and their trademarks at the corporate level. 5. Prestigious advertising of foreign firms is distinguished by a wide variety of forms and methods. So, firms order highly artistic interiors for their premises, open original museums, and more. others Question 80 1. Branding is an activity to create a sustainable preference for a product, based on the complex impact on the consumer of a trademark, packaging, advertising messages, sales promotion materials and other advertising elements, united by a certain idea and the same type of design, distinguishing the product from competitors and creating its image ( brand image [brand image]). 2. Branding is widely used by industrialized countries, but has not found its proper understanding in Russia. Branding is a joint activity of an advertiser, a marketing organization and an advertising agency substantiated by marketing research. In the course of this activity, a personalized brand image is created and introduced into the mind of the consumer - an image of a product or product family marked with a certain trademark. At the same time, a wide variety of types, means, forms and methods of advertising are used. 3. The creators of the brand image take into account the tactile and aesthetic properties of the product, the sensations that it causes in the consumer, appealing to emotions and influencing the subconscious. If a product is successful in the market, then there will always be products similar to it, repeating its popular image. So, branding, constantly developing, helps to bypass competitors. 4. Branding allows: - maintain the required sales volume for a long period of time; - to ensure profit growth as a result of expanding the range of products and promoting their unique qualities, introduced through a collective image; - express the culture of the country, region, city or place of manufacture of goods; take into account the needs of consumers for whom it is intended, as well as the characteristics of the territory where it is sold; - use three relevant factors for appealing to an advertising audience: historical roots, today's realities and forecasts for the future. Effective implementation of branding is possible if the professional knowledge and entrepreneurial culture of the advertiser and the agency with which he cooperates are available and sufficient, as well as with the ability to work with intellectual property, trademarks, design, texts. Question 81 One of the reasons for the emergence of direct marketing is that thanks to widespread computerization, it has become possible to combine a massive scale of an advertising campaign and an individual approach to each consumer. In addition, there has been a "demassification" of consumption, which has abolished the universal approach in marketing and has broken the market into many fragments. Most Western advertisers agree that direct marketing will dominate marketing communications in the coming years due to its greater efficiency than media advertising and significant profitability. 2. The essence of direct marketing is to establish a long-term mutually beneficial and developing partnership between the manufacturer and personal consumers. Traditionally, to find the target groups exposed to advertising, the segmentation method is used - the allocation of a part of the population with similar socio-demographic characteristics, suggesting the same needs. In direct marketing, on the contrary, needs are first determined, and then groups of consumers who have them are formed, which are individualized and included in the advertising process in the identified feedback. Direct marketing is a marketing method that uses the entire set of advertising media and distribution channels. 3. The main areas of work of an advertising agency in the field of direct marketing are: - personal selection of prospective buyers to establish direct mutual contact with them; - systematic maintenance of individualized communications with these buyers; - Growth of profits by testing new offers of improved products and services, as well as more effective advertising messages. Direct marketing is an area in which many industrial, service and advertising firms are investing today. It allows you to find potential buyers, convince them to contact the advertiser, cooperate with them on a personal, friendly basis, receiving substantial income. 4. For domestic exporters, direct mail, which is part of the concept of "direct marketing", does not require large foreign exchange allocations, but at the same time is very effective direct mail, is most widely used. The main advantage of direct marketing is the ability to accurately determine the effectiveness of invested funds through established and controlled communications with consumers. Question 82 1. An advertising campaign is a set of promotional activities carried out in accordance with the marketing program and aimed at consumers of goods in order to evoke their reaction, which contributes to the decision of the manufacturer of its strategic or tactical tasks. 2. During the implementation of advertising campaigns, the implementation of certain activities depends on the marketing strategy, which can be expressed, for example, in capturing the market as a whole, its share, segment; introduction into an unoccupied niche by competitors; retention of previously captured market positions. Also taken into account: - marketing infrastructure; - human resources and technical capabilities; - the level of development of communications and information supply; - the state of ecology of advertising, information and marketing activities. 3. A manufacturer of both consumer goods and industrial goods can count on the high efficiency of advertising campaigns only if: - they are built on the basis of preliminary research, taking into account the dynamic nature of the market; - accompanied by reasonable, memorable promotional products; - provided with a voluminous publication in the most appropriate for solving the tasks and taking into account the specifics of the advertising audience, means of advertising distribution; - coordinated at different levels of marketing activities. 4. An advertising campaign includes three main stages: - preparatory; - culminating; - final. Moreover, the success of the advertising campaign as a whole is laid at the preparatory stage. 5. When planning advertising campaigns, you need to know that the success of market activity depends not only on successful advertising, but also on the factors that characterize the product: its consumer properties, price and analogues on the market. Planning advertising costs is dictated by the optimal set of used types and means of advertising distribution, as well as the cost of space and time for advertising. 6. An advertising campaign is a joint coordinated activity of the advertiser as the customer of the advertising campaign, the advertising agency as the creator, organizer and coordinator of the campaign and the advertising medium as a channel that brings the advertising message to the consumer. The effectiveness of advertising campaigns depends on the correct choice and use of methods and forms of management that meet the requirements of the emerging marketing situation. Question 83 1. An international advertising campaign is a set of promotional activities outside the advertiser's country. There are three methods of managing international advertising campaigns: centralized, decentralized and mixed. 2. Under centralized management is understood such that strategic, tactical and creative decisions are made in the advertising agency - the center of the advertising campaign, and carried out by its affiliates or local advertising organizations of the campaign sites. 3. Under decentralized management, decisions are made and carried out autonomously by local advertising agencies. 4. Management, in which decisions are made and implemented by advertising agencies in the field, but are consistent with the center, is called mixed. Currently, the global advertising market is experiencing a practice of moving away from centralized management in order to avoid an inefficient mechanism for making authoritarian decisions. Question 84 1. The problem of determining the effectiveness of advertising campaigns as an important controlling element of advertising activity is quite relevant. Most experts believe that the costs of advertising should be considered as inevitable, as well as the costs of research, training, equipment. To achieve the planned volume of sales of goods, it is necessary to produce an appropriate percentage of deductions for advertising developed by market practice. 2. The relative effectiveness of an advertising campaign can be set as: - the ratio of sales or profits before and after the campaign and the costs spent on it; - changing the level of awareness of a given advertising audience about the advertiser, his trademark, products and services, that is, to what extent it performs its information function. An exporter's advertising activity can be assessed by analyzing the structure of advertising costs. 3. Methods for assessing the quality of advertising products make it possible to indirectly determine the effectiveness of the advertising impact on the audience selected in the process of conducting an advertising campaign. These include: - expert evaluation of the editorial and artistic council of specialists from the field of advertising; - identifying the advantages and disadvantages of promotional products when reviewing promotional products by domestic and foreign experts; - questioning; - Competitions for manufacturers of promotional products. Domestic exporters who have recently entered the foreign market will have to realize the importance of analyzing the effectiveness of advertising campaigns and the quality of promotional products. Question 85 1. The global advertising market is an environment in which promotional activities are carried out on a competitive basis to promote the export of national goods and services. Knowledge of the features, state and development trends of the global advertising market is a prerequisite for the preparation and implementation of sufficiently professional and adequate advertising campaigns for the marketing environment. 2. Changes in the global advertising market are justified by its high dynamism. Advertising reflects the events taking place in the market, and to some extent serves as their indicator. Thus, advertising is forced to adapt to new conditions, change forms, and make adjustments to the content. 3. Inefficient marketing of products and services is exacerbated not only by growing competition. The following non-traditional problems arise: - energy; - fuel and raw material crises; - environmental protection requirements; - informational, etc. With a change in the socio-demographic state of society, a reassessment of values among its members and an increase in the educational qualification, a social movement is gaining strength, the purpose of which is to protect consumer rights. Manufacturers have to adjust the technical parameters of their products, create more economical and environmentally friendly designs and technologies. 4. In order to compete with transnational corporations that have concentrated significant financial, industrial, scientific and technical resources of world trade, second-tier firms need, in particular, to intensify advertising. Under these conditions, the struggle for the consumer should be the most prepared. In today's market, the one who offers new products, improved services, forms and methods of marketing and after-sales service wins. 5. Advertising expenses make up a significant part of the budgets of foreign industrial firms. Thus, in the United States, more than 5% of the total costs for the production and sale of goods go to advertising in the media. For manufacturers of consumer goods, the share of advertising spending is even higher. For example, drug manufacturers have more than 15%. The high level of advertising fees is largely due to high rates for advertising space or media airtime. Question 86 1. The world market is characterized by a constant concentration of advertising activities, the absorption of small advertising agencies and advertising distribution media. Corporations strengthen their position by concentrating in their hands the most profitable part of advertising activity and subordinating the means of advertising distribution to themselves. 2. Industrial and service firms have a tangible influence on the advertising services market, but monopolies producing consumer goods of mass demand have the greatest influence. Having a huge budget, they actually contain the media, through which they carry out their advertising policy. 3. By monopolizing the market for advertising services, industrial firms obtain a monopoly on the sale of their goods. Thus, the advertiser forces advertising agencies and advertising media to provide large discounts, favorable conditions for placing orders for the preparation, as well as the publication of advertising materials. 4. Advertising in modern business plays an essential role and is a process that must be carefully studied in order to achieve success in practice. The structure of the world market is constantly becoming more complex and updated. First of all, it is the experts who carry out their promotional activities on it that have to react to this. Question 87 1. Organizations are faced with the task of determining the price of their goods and services. In market conditions, pricing is a complex process that is based not only on marketing recommendations, but also on many other factors. Marketing here serves as the basis for choosing a general direction in pricing, approaches to determining prices for new and already manufactured products and services to increase sales volumes, turnover, increase production and strengthen the market position of the enterprise. 2. The role of price and pricing policy as the main components of marketing activities is increasingly increasing. Prices are in close interdependence with the achieved commercial results, they affect the entire activity of the company. 3. The essence of a targeted pricing policy in marketing is that prices, reflecting the position of the product on the market, contribute to solving the problems of mastering its certain share, ensuring the planned amount of profit, etc. 4. When determining the overall pricing policy, individual decisions (the relationship of prices for goods depending on the assortment, the use of special discounts and price changes, the ratio of own prices and competitors' prices, the method of pricing for new goods) constitute an integrated system. The practice of setting prices during negotiations between the seller and the buyer was gradually replaced, and at the end of the XNUMXth century. prices for all buyers became the same. The large retailers that emerged advertised a "strict uniform price policy" as they offered a wide variety of products and kept a large number of employees. Question 88 1. Historically, price has always been the main factor influencing the buyer's choice. Price when choosing products is especially relevant for poor countries among the poor. However, in recent decades, consumer choice has been determined by such price factors as sales promotion, organization of distribution of goods and services for customers. 2. Depending on the size of the firm, the pricing process is carried out by: - in small firms - management; - in large firms - managers endowed with appropriate powers. Their proposed prices are approved by management, which, in turn, determines the overall setting and pricing objectives. In industries where pricing factors are critical (aerospace, railroads, oil companies), firms often establish pricing departments that develop prices themselves or outsource to other departments. The price-setting policy-makers include sales managers, production managers, finance managers, and accountants. Question 89 There are four types of markets, each of which solves its own problems in the field of pricing and on which the price policy of the seller depends. The market of pure competition consists of many sellers and buyers of a similar commodity product. No individual buyer or seller has a decisive influence on the level of current market prices of goods. Sellers cannot ask for a price above the market price, since buyers are free to purchase any quantity they need at that market price. Sellers will not ask for a price below the market price, as they are able to sell the goods at the current market price. As long as the market remains a market of pure competition, the role of marketing research, product development activities, pricing policy, advertising, sales promotion and other activities is minimal. The market of monopolistic competition consists of many buyers and sellers who do not deal at a single market price, but within a wide range of prices, justified by the ability of sellers to offer buyers different options for goods. For goods that differ from each other in quality, properties, external design, buyers are willing to pay different prices. To make a product stand out beyond price, salespeople tend to develop different offerings for different customer segments and make extensive use of branding, advertising, and personal selling techniques. In a competitive market, marketing strategies have less influence on each individual firm than in an oligopolistic market. An oligopolistic market consists of a small number of sellers who are highly dependent on each other's pricing policies and marketing strategies. Goods can be similar (steel, aluminum) or different (cars, computers). The small number of sellers is explained by the fact that it is difficult for new applicants to penetrate this market. Each seller is sensitive to the strategy of selling competitors' products. So, if a trading company reduces its prices by 5%, then buyers will gradually switch to this supplier. Other manufacturers will either have to cut prices as well, or offer more or more services. In a pure monopoly, there is only one seller in the market. It can be a government organization or a private monopoly. The state monopoly is capable of pursuing a variety of goals with the help of price policy: for example, setting a price below cost if the product is needed for buyers who are not able to purchase it at full price. The price can be made with the expectation of covering costs or obtaining high incomes. Or it may be that the price is set very high in order to reduce consumption in every possible way. In the case of a regulated monopoly, the government allows the company to set prices that provide a "fair rate of return" that will enable the organization to maintain production and, if necessary, expand it. In the case of an unregulated monopoly, the firm itself is free to set any price that the market can bear. However, for a number of reasons, firms do not always ask for the highest possible price. The fear of government regulation, the reluctance to attract competitors, or the desire to quickly penetrate - thanks to low prices - to the entire depth of the market can play a role here. Question 90 1. Any firm will have to decide what goals it seeks to achieve with a particular product. If the choice of target market and market positioning is carefully considered, then the approach to the formation of the marketing mix is clear. The firm may pursue other goals: ensuring survival, maximizing current profits, gaining leadership in terms of market share or in terms of product quality. 2. Ensuring survival becomes the main goal of the company in cases where there are too many manufacturers on the market and intense competition has arisen or customer needs change dramatically. Firms are forced to set low prices in the hope of a favorable response from consumers. Survival is more important than profit. As long as the reduced prices cover costs, struggling firms can continue to do business for some time. 3. Many firms seek to maximize current profits by choosing a price that maximizes profit, cash flow, and cost recovery. Current financial performance for the firm is more important than long-term. 4. Achieving leadership in terms of market share, firms go to the maximum possible price reduction. A variant of this goal is to achieve a specific increment in market share in the hope of having the lowest costs and the highest long-term profits. 5. The firm can ensure that its product is of the highest quality available on the market. This usually requires a high price tag to cover the cost of high quality and costly R&D. Question 91 1. The price set by the firm will affect the level of demand for the product. The relationship between price and the resulting level of demand is expressed by the demand curve. The curve shows how many goods will be sold on the market during a specific period of time at a certain price (for more details, see Shevchuk D.A., Shevchuk V.A. Macroeconomics: Lecture Notes. - M .: Higher Education, 2006). Under normal circumstances, demand and price are inversely related. So, by raising the price from one level to another, the firm will sell less of the product. It is likely that consumers on a tight budget, faced with a choice of alternative products, will buy less of those whose prices are too high for them. 2. Most demand curves tend downward in straight or curved lines. However, in the case of prestige goods, the demand curve sometimes slopes upward. Consumers considered a higher price to be an indicator of higher quality or greater desirability of the product. However, if the price is too high, the level of demand is lower. Question 92 1. Most firms tend to measure changes in demand. In a pure monopoly, the demand curve indicates that the demand for a product is justified by the price that the firm asks for it. 2. However, with the advent of one or more competitors, the demand curve will change depending on changes in the prices of competitors. In this case, we will assume that they remain unchanged (we will discuss what happens when competitors' prices change below). To measure demand, it is necessary to evaluate it at different yen. It must be remembered, however, that other factors besides price, such as an increase in advertising, may affect demand, and then it becomes impossible to determine how much of the increase in demand is due to a decrease in price, and how much is due to an increase in advertising. Under the influence of non-price factors, there is a shift in the demand curve, and not a change in its shape. Question 93 1. Demand determines the price a firm can charge for its product, and the minimum price is determined by the firm's costs. The company seeks to charge a sufficient price to fully cover all costs of production, distribution and marketing, including the rate of return. 2. The costs of the firm are of two types: fixed and variable. Fixed costs are costs that remain constant and do not depend on the level of production. This is a payment for renting a room, heating, paying salaries to employees, etc. Variable costs are costs that vary in direct proportion to the level of production, that is, their total amount varies depending on the number of units of goods produced. 3. Gross costs are the sum of fixed and variable costs at a certain level of production. The management seeks to charge such a price for the goods, which, if possible, would cover all the gross production costs (for more details, see Shevchuk D.A. Corporate finance. - M .: GrossMedia: ROSBUH, 2008). Question 94 1. In addition to demand and costs, a firm's setting of an average price range is influenced by competitors' prices and their market reactions. A firm can obtain information about the prices and quality of its competitors' products in several ways: - make comparative purchases and compare prices and the goods themselves; - get competitors' price lists, purchase their equipment and dismantle it; - to learn opinion of buyers about the price and quality of goods of competitors. 2. Knowledge about the prices and products of competitors can be used by the firm as a guideline in developing its own pricing. If the goods are similar, the firm will be forced to charge a price close to the price of the competitor's product, otherwise you may lose sales. If the product is of lower quality, the firm may ask for a lower price. Request more than a competitor, the company can when its product is higher in quality. Essentially, the firm uses price to position its offering relative to competitors' offerings. Question 95 Knowing the demand schedule, the estimated cost and the prices of competitors, the firm is ready to choose the price of its own product. The price should ensure profit and not impede the formation of demand (for more details, see Shevchuk D.A., Shevchuk V.A. Money. Credit. Banks. A course of lectures in a summary presentation: Study Guide - M: Finance and Statistics, 2006 ). The minimum possible price, as noted above, is determined by the cost of production; maximum - the presence of some unique advantages in the company's product. The prices of competitors' and substitutes' products determine the level that a firm should adhere to when setting a price. 2. Firms address the pricing problem by choosing a pricing methodology that takes into account at least one of the three considerations above. The firm hopes that the chosen method will correctly calculate the specific price. Next, consider the following pricing methods. - "average costs plus profit"; - analysis of break-even and provision of target profit; - setting prices based on the perceived value of the product; - setting prices based on the level of current prices; - setting prices on the basis of closed auctions. Question 96 1. The simplest way of pricing is to charge a certain margin on the cost of goods. This method is widely used in both market and non-market sectors of the economy. As a rule, it is illogical to use standard margins - in order to establish the optimal price, it is necessary to take into account the peculiarities of current demand and competition. 2. The margin-based pricing methodology remains popular for the following reasons: - by tying the price to costs, the seller simplifies the problem of pricing for himself and he does not have to often adjust prices depending on demand; - if all firms in the industry use this pricing method, then prices are likely to be similar, and price competition is minimized; - with high demand, sellers do not profit at the expense of buyers and at the same time have the opportunity to receive a fair rate of return on invested capital. Question 97 1. The cost-based pricing method is based on a break-even chart. In contrast to fixed costs, gross costs rise at the same time as sales increase. 2. The possibility of obtaining the planned profit by setting a higher price for the goods depends on the price elasticity of demand, which the break-even chart does not reflect. The pricing method under consideration requires the firm to study various price options, their impact on the sales volume required to overcome the break-even level and achieve the planned profit, as well as analyze the probability of achieving all this at each possible price of the product. Question 98 1. Most firms begin to base their pricing on the perceived value of their products. They consider the main factor in pricing not the costs of the seller, but the perception of the goods by buyers. 2. In order to form an idea of the value of a product in marketing complexes, non-price methods of influence are used. The price in this case is designed to correspond to the perceived value of the product. So, many identical goods in different places cost differently (for example, depending on the level of service). The firm needs to discover what value perceptions consumers have about competitors' products and how much they are willing to pay for each benefit added to the offering. If the seller asks for more of the value of the product recognized by the buyer, the firm's sales will be lower than it could be. Many companies inflate the prices of their products, and they do not do well in the market. Other firms, on the other hand, charge too low prices for their products. Then these goods go well on the market, but bring the company less income than they could if the price was raised to the level of their value significance in the minds of buyers. Question 99 1. When determining the price of its product, the company mainly starts from the prices of competitors and pays less attention to indicators of its own costs or demand. In oligopolistic industries, firms usually charge the same price. Smaller firms "follow the leader" by changing prices when the market leader changes them. Some firms may charge a small premium markup or provide a small discount, keeping the difference in price constant. 2. In cases where the elasticity of demand is difficult to measure, firms consider the level of current prices as a guarantee of obtaining a fair rate of return. In addition, they feel that sticking to the current price level means maintaining a normal balance within the industry. Question 100 Competitive pricing is also used in cases where firms struggle for contracts during closed tenders. In such situations, when setting its price, the firm is based on the expected price offers of competitors and asks for a price lower than others. However, this price cannot be lower than the cost, otherwise the company will cause financial damage to itself. Question 101 The goal of all previous methods is to narrow the price range within which the final price of the product will be set. However, before its appointment, the company must take into account the psychology of price perception. Many consumers look at price as an indicator of quality. Many firms manage to increase the sales of their products by raising the price of their products, and these products will be considered prestigious. The prestige-based pricing method is particularly effective for items such as perfumes or expensive cars, which may cost 10 times less, but people pay 10 times more for them because they think the price suggests something special. There is also an unwritten law, according to which the price of a product must be expressed as an odd number. For example, instead of a price of $222, the price is set to $219, and then for many consumers this product will cost $210-plus, not $220-plus. Question 102 1. It is advisable to check the estimated price for compliance with the settings of the practiced price policy. Many firms have developed attitudes about their desired pricing image, discounting prices, and responding accordingly to competitors' pricing activities. 2. Management should take into account the reactions to the assumed price from the following market participants: - distributors and dealers; - sales staff of the company, which sells goods at a given price; - competitors; - suppliers; - state bodies. In the latter case, it is necessary to know the laws relating to pricing and to be confident in the "defensibility" of one's pricing policy. Question 103 1. The firm, setting a particular price, first creates a whole pricing system that covers different goods and products within the product range and takes into account differences in marketing costs in different geographical regions; differences in levels of demand, distribution of purchases over time, and other factors. 2. In a constantly changing competitive environment, the company sometimes initiates price changes, and sometimes responds to competitors' price initiatives. The firm sets an initial price and then adjusts it to take into account various environmental factors. Question 104 1. Great demands on the problem of pricing are made at the stage of launching a new product on the market. A distinction can be made between setting a price for: - new product; - patented goods; - a product that imitates existing ones. 2. A firm selling a genuine novelty or patent-protected product may choose either a cream-skimming strategy or a solid market penetration strategy when setting the price. The "cream skimming" strategy involves setting the highest prices and applies to new products created and protected by patents. This strategy is effective when the costs of developing a new market (advertising and other means of familiarizing consumers with goods) turn out to be too high for competitors, and the raw materials, materials and components necessary for the production of a new product are available in limited quantities. After the initial wave of sales subsides, the firm lowers the price to attract the next stream of customers who are satisfied with the new price. Acting in this way, the company removes the maximum possible financial "cream" from a variety of market segments. At the same time, it is desirable to maximize short-term profits until the new market becomes an object of competition. 3. The use of the cream-skimming method makes sense under the following conditions: - there is a high level of current demand from a sufficiently large number of buyers; - the costs of small-scale production are not so high as to negate the financial benefits of the company; - high initial price will not attract new competitors; - high price supports the image of high quality goods. Question 105 Essence and use cases 1. Firms set a relatively low price for their new product in the hope of attracting a large number of buyers and gaining a large market share. An example of such a strategy would be buying a large factory, setting a minimum price for a product, gaining a large market share, reducing production costs and, as they decrease, continuing to gradually reduce the price. 2. From a financial point of view, the position of an enterprise that prefers this approach can be characterized by both an increase in the mass of profit and return on invested capital, and a significant drop in profitability. Therefore, when offering deliberately low prices, the management of the enterprise should calculate the possible consequences as accurately as possible, but in any case, the degree of risk is very high, since competitors can quickly react to price cuts and significantly reduce the prices of their products. 3. When analyzing the market and compiling a sales forecast for an enterprise that has chosen the strategy under consideration, it must be taken into account that the amount of price reduction for its products should be very significant (by 30 - 50%) and in the presence of a high level of product quality and demand. Management's policy should be to enter the market through noticeably lower prices, to accustom the consumer to the brand of your company or to enable him to understand the advantages of your products and, therefore, to secure sufficient market share and sales volume. Only when the product is recognized in the market and its advertising among consumers on the basis of "word of mouth" has begun, the company can revise both its production programs and prices for products in the direction of their increase. 4. The following conditions favor the establishment of a low price: - the market is very sensitive to prices, and the low price contributes to its expansion; - with the growth of production volumes, its costs, as well as the costs of distribution of goods, are reduced; - low price is unacceptable for existing and potential competitors. Question 106 1. In modern conditions, the establishment of prices for products and services that are already on the market cannot be carried out in isolation from the continuous improvement of the technical parameters of products and the improvement of their quality. All these changes must meet the requirements of marketing, that is, the needs and preferences of specific consumer groups. Obviously, the qualitative improvement of products already on the market in isolation from the needs and desires of specific consumers is a pointless thing. 2. Improving the quality entails an increase in production costs, and hence an increase in product prices. To succeed in the competitive struggle, the management of the enterprise will have to develop a strategy aimed at constantly reducing prices for products and services traditional for this market segment. Therefore, in the conditions of the modern market, an enterprise must simultaneously solve the following tasks in relation to products already on the market: - ensuring constant growth of quality and improvement of consumer properties; - Constant price reduction. 3. The enterprise needs a radical revision of management systems and organization of production. But even without marketing, both of these tasks cannot be solved. At the same time, the correct definition of the general approach to pricing for specific types of products for this market segment is of particular importance. Which of the approaches chosen by the management of the enterprise depends not only on its competitiveness in the market, but also on the possibility of ensuring the profitability of production while reducing the price level, and hence the long-term stability of the financial position of the enterprise. 4. A firm planning to develop a product-imitator faces the problem of its positioning. Product positioning on the market - activities in relation to the product to ensure its competitive position in the market and the development of an appropriate marketing mix. The company must decide on the positioning of the novelty in terms of quality and price. Question 107 Different approaches are applied to pricing if the product is part of a product range. The firm seeks to develop a pricing system that maximizes profits for the product as a whole. Price calculation is complicated by the fact that different products are interconnected in terms of demand and costs and face different degrees of competitive opposition. Let's consider four situations. 2. Creating not a separate product, but a whole product range, the company establishes a stepwise division of prices for different products. At the same time, it is necessary to take into account the differences in the cost of various goods, the difference in the assessments of their properties by buyers, as well as the prices of competitors. The task of the seller is to identify the qualitative differences of goods felt by the consumer that justify the difference in prices. 3. Many firms, along with the main product, offer a number of complementary or auxiliary products. The problem arises: what should be included in the original price as a standard kit, and what should be offered as complementary products in such a way that buyers cannot refuse to purchase a kit. 4. In a number of industries, so-called mandatory accessories are produced, which are to be used together with the main product. Producers of essential products can charge low prices for essential products and high prices for mandatory applications, resulting in high profits from the sale of mandatory applications. A manufacturer that does not offer its own mandatory supplements charges a higher price on its product to generate the same gross revenue. 5. Some productions are often associated with the release of by-products, which can affect the price level of the main product if such products have no value, and getting rid of them is expensive. The producer seeks to find a market for his by-products and is often willing to accept any price as long as it covers storage and shipping costs. This allows him to lower the price of the main product, making it more competitive. Question 108 The geographic approach to pricing involves making a decision about setting the price of a product depending on the part of the country in which it will be sold. Delivery of goods to a remote area costs the company more than delivery to a client located nearby. If you charge more for goods to distant customers to cover higher transport costs, you run the risk of losing customers. Let's consider five options for setting prices on a geographical basis. Setting the FOB price at the place of origin of the goods means that the goods are sold to the carrier on an FOB basis, according to which all rights to this goods are transferred to the customer. The latter pays all transportation costs from the place of production to the destination. In this case, the product turns out to be more expensive for remote customers, which leads to the loss of a large number of customers. Establishing a single price with delivery costs included in it involves charging a single price for the goods with the inclusion of the same amount of transportation costs, regardless of the distance of the client. The average amount of transportation costs is the transportation fee. This pricing method will be preferred by more remote customers. This method is relatively simple to use and makes it possible to set a single price for a certain product on a national (or global) scale. Zonal pricing is a mixture of FOB pricing at origin and a single price. Under this pricing method, all customers within the same zone pay the same total price, which gets higher as the zone gets further away. Closely located customers within each individual price zone receive no price advantage over more distant customers. However, customers on both sides of the border of the price zone can be at a distance of several kilometers from each other, and pay completely different prices. Base point pricing asks the seller to select a city as the base point and charge all customers a shipping cost equal to the cost of shipping from that point, regardless of where the shipment actually originates from. In this case, along with an increase in the size of the total price for customers located near the enterprise, for distant customers, this price decreases. If one city is chosen as a base point, all sellers can set a single price including delivery costs for all customers and eliminate price competition. Most firms today choose several cities as base cities, and transport costs are calculated from the base point closest to the customer. Shipping indemnity pricing applies when a seller is interested in doing business with a specific buyer or geographic area. In this case, the seller partially or fully assumes the actual costs of delivery of the goods. In this way, he seeks to expand the volume of activities and reduce average costs by covering additional transportation costs. This method is expedient in order to penetrate new markets, as well as to maintain its position in markets with increasing competition. Question 109 1. As an incentive to consumers, many firms are willing to change their initial prices. Discounts for cash payment - price reduction when paying for purchases in cash. Such discounts contribute to the liquidity of the seller and reduce the costs associated with the collection of loans and bad debts. 2. Discount for the quantity of purchased goods - price reduction when buying large volumes of goods. These discounts must be offered to all customers and not exceed the cost savings of the seller in connection with the sale of large quantities of goods. Savings are possible by reducing the costs of selling, maintaining stocks and transporting goods. Such discounts are an incentive to purchase from a single vendor rather than multiple vendors. 3. Manufacturers offer functional discounts to goods distribution services, that is, those that perform the functions of selling goods, storing them, and keeping records. A manufacturer may offer different sales discounts depending on the nature of the service, but it must offer a single discount to all services that are part of a particular channel. 4. Seasonal discounts - price reduction for out-of-season purchases of goods or services. They contribute to maintaining a more stable level of production throughout the year. 5. Offsets - types of discounts from the list price. This may be a trade-in credit, i.e., a reduction in the price of a new product subject to the surrender of an old one, or a sales promotion credit, i.e. a payment or discount as a reward to dealers for participating in advertising and sales support programs. Question 110 Under certain circumstances, firms temporarily charge their goods below the list price, and sometimes below the cost of various forms: - prices of "unprofitable leaders" in order to attract buyers who are able to purchase other goods at the regular price; - prices in certain periods of time; - prices for special occasions. Question 111 1. Taking into account differences in consumer preferences, goods, local conditions and other factors, firms make adjustments to their prices. Discriminatory pricing occurs when a firm sells a product or offers a service at two (or more) different prices without taking into account differences in costs. The setting of discriminatory prices takes the following forms: - depending on the status of the buyer (for example, a lower price for visiting the museum for schoolchildren, students, pensioners); - taking into account product options; - depending on the location of the goods; - depending on the season, day of the week or hour of the day; - in view of the best service. 2. For price discrimination to be effective, certain conditions must be present: - the market should have segments that differ in different intensity of demand; - representatives of the segment in which the product is sold at a low price should not be able to resell it in the segment where the company offers it at a high price; - competitors should not be able to sell goods cheaper in the segment where the company offers it at a high price; - costs should not exceed the amount of additional revenue generated as a result of price discrimination; - do not provoke resentment and hostility on the part of consumers; - comply with the requirements of the law (on consumer protection). Question 112 1. Firms with their own pricing system and pricing strategy use proactive price changes from time to time. Thus, they explore changes in costs, competition, and demand by lowering or raising the yen. Proactive price cuts are caused by the following circumstances: - underutilization of production capacities when it is impossible to intensify trade efforts, improve goods and other measures; - reduction of market share under the pressure of strong price competition. The firm initiates a price reduction to gain a dominant position in the market. It either immediately enters the market with prices lower than competitors, or the first to reduce prices in order to reduce production costs by increasing the won market share. Then the so-called moving falling price is used. 3. As the market becomes saturated with a commodity, its price gradually falls. The firm needs to compare the growth rate of the industry as a whole and the income of potential consumers, as well as determine other factors in the dynamics of market capacity. As a result of such studies, the company is able to determine the percentage of price reduction in the coming period to ensure sustainable sales of products. This approach is usually applied to consumer goods, when the conditions of market competition are characterized by high sensitivity (elasticity) of consumer demand to price changes. 4. Measures to reduce production costs and sales of products are carried out by improving the technology and organization of production, increasing the volume of products. The price of the company's products is inversely proportional to the volume of production (the size of the batches produced, the serial production): the higher the volume of output, the lower the prices for it. This is called "economy of scale". 5. "Economy of scale" is possible if it is difficult to introduce new competitors to a given market. To do this, you need to take care not only about reducing costs, improving product quality, but also to carry out active innovation. All these factors taken together make the costs of entering this market too high for an outsider enterprise that has not previously worked in it. Question 113 1. Successfully executing a price increase can significantly increase profit margins. This is facilitated by sustained global cost-driven inflation. An increase in costs that does not correspond to an increase in productivity leads to a decrease in the rate of profit. Often, price increases offset rising costs in anticipation of further inflation or government price controls. 2. The presence of excessive demand is also a factor leading to higher prices if the firm is not able to fully meet the needs of its customers. Prices can be raised directly or indirectly by removing discounts and adding more expensive options to the range. Question 114 1. Price reduction can be perceived as: - the fact that the product is a late model; - the presence of defects in the product; - the result of the financial trouble of the company; - a sign that the price is declining and it is worth delaying the purchase; - evidence of low quality goods. 2. A price increase, which usually deters sales, may encourage the buyer to make a purchase because: - the product has become especially popular and may become inaccessible over time; - the seller is greedy and seeks to break the price of his best product, which the market can bear. Question 115 1, A firm planning to change the price must think about the reaction of competitors if the number of sellers is small and their products are similar to each other, and buyers are well informed (that is, under oligopolistic competition). 2, The competitor reacts to price changes depending on his interests, which may consist, for example, in increasing sales or stimulating demand. The firm needs to predict the most likely reaction of each of the competitors. They can behave either in the same way or in different ways, because they differ from each other in their size, market share indicators or strategic attitudes. If some of them respond to the change in the yen in a similar way, there is every reason to believe that the rest will do the same. Question 116 1. To determine the firm's response to price changes by competitors, you need to know the following: - the reasons for a price change by a competitor (to conquer the market, to use underutilized production capacities, to compensate for changed costs, or to initiate price changes in the industry as a whole); - price change period; - what will be the market share and income of the firm if it does not take retaliatory measures; - whether other firms plan to take countermeasures; - What could be the responses of the competitor and other firms to each of the possible responses. 2. The firm must conduct a broad market analysis and find out both the problems associated with the stage of the life cycle of its product, its importance within the product range, and the intentions and resources of the competitor, cost dynamics and other circumstances. Question 117 1. It is becoming more and more obvious that new systems of intra-company management should focus on: - long-term perspective; - conducting fundamental research; - diversification of operations; - innovative activity; - maximum use of the creative activity of the staff. Decentralization, reduction of levels, promotion of workers and their payment depending on real results will become the main directions of the reorganization of the administrative apparatus. 2. The most important factors in achieving a high level of competitiveness are the concentration and development of production, and the stimulation of new needs. Associated with them are rising costs for research and development, advertising and marketing. 3. Production and technical leaders of highly developed states in the "struggle for leadership" perform the following functions: - updating the assortment; - development and mastering of new models of products and a simultaneous increase in labor productivity; - increasing the flexibility of production and its efficiency; - reduction of all types of costs and expenses. Question 118 1. Ensuring a stable growth in the quality and reliability of new products while reducing prices for new types of products plays a special role in the work of enterprises. The course is taken to increase the production, creative output and activity of the personnel while focusing on the specific reduction in the number of production and managerial workers. All this practically means a large-scale release of new, high-demand products, the prices of which will be lower than those of competitors, and the quality and performance characteristics and reliability will be higher. Large companies have developed a set of technical, organizational and managerial measures that will make it possible to provide conditions for a sharp increase in the level of competitiveness in the shortest possible time. The end result of these activities should be the creation of a new generation of production systems that will operate in the mode of the so-called "innovation pipeline". 2. The essence of the "innovation pipeline" is to provide: - continuous introduction of new products into production; - steady reduction of production costs; - improving the quality and consumer characteristics while reducing prices for manufactured products. In essence, the task is to organize, within the framework of economic complexes of a new type, the high adaptability of small enterprises with low costs and high labor productivity of mass production. It is believed that such a combination will not only achieve stabilization, but also reduce costs in all parts of the supply chain with the constant introduction of new products into mass production, expanding the range of products and changing the assortment, which should ultimately create conditions for winning the competitive fight. Question 119 1. In order to reach the planned market milestones in the shortest possible time with minimal investment, many companies are oriented in three main directions: - complex automation of production processes; - improving the forms and methods of management, including the organization of production and the development of the technological base; - development of human resources, including advanced training. 2. It is this concentration of resources that contributes to the creation of a new generation of adaptive production systems. The process of modifying organizational management structures, specific forms and methods of managing production and marketing operations is developing in the following areas: - decentralization of production and marketing operations through the activities of semi-autonomous or autonomous structural units (branches) that are fully responsible for profits and losses. In a relatively small central body of corporate governance, only strategic development issues related to large investments are concentrated; - innovative expansion; - debureaucratization; - continuous increase of creative and production efficiency of the personnel 3. Innovative expansion, search for new markets and diversification of activities are implemented through the creation of firms within large companies focused on the production and independent promotion of new products and technologies to the markets and operating on the principles of "risk financing". Large companies create in the most promising areas small, both independent and on a "cooperative" basis, aimed at gaining strong positions in the market in the shortest possible time. 4. Debureaucratization, a constant increase in the creative and productive efficiency of the personnel are achieved by taking a wide variety of measures, including the distribution of company shares among the personnel and the formation of enterprises that are collectively owned by their employees. Question 120 1. The concept of strategic management involves the development and implementation of a strategy in the following areas: - in the external sphere; - in relation to the product created by the organization; - in relation to the personnel of the organization. 2. Strategy is the general direction of the organization's activities to achieve the main goals (for more details, see Shevchuk D.A. Strategic Management: Textbook. - Rostov-on-Don: Phoenix, 2006). 3. If for the top level of the organization the strategy is a means, then for a lower hierarchical level it turns into a goal. In determining the strategy, the management of the company faces three main questions in relation to the business: - what activity should be stopped; - what activities should be continued; - what activities should be started. The strategy depends on the following factors: - organization's activities; - the degree of importance of the activities carried out by the organization. Question 121 There are three main areas for developing a firm's strategy in the market. The first area is related to achieving leadership in minimizing production costs. The purpose of this type is to achieve the lowest production and sales costs for the company. The company is able to gain a larger market share due to low prices for similar products, having a good organization of production and supply, a technological and engineering base, as well as a well-functioning system of product distribution. The second area of strategy development is due to specialization in the production of products. In this case, achieving leadership requires highly specialized production and marketing to attract the consumer, even if the price is high enough. The third area of strategy development relates to fixing and researching a suitable market segment and focusing the firm's efforts on the chosen market segment. In this case, the company pursues a policy of cost reduction and (or) specialization in the production of a product based on an analysis of the needs of a particular segment. Question 122: Firms resort to many different forms and methods of competition, often far beyond traditional competition (for more details, see Shevchuk D.A. Creating your own company: Professional approach. - M .: GrossMedia: ROSBUH, 2007). However, it is this form of competition that is ultimately decisive for the firm's long-term survival. Let's turn to specific examples. For a long time it was believed that such a giant as General Motors was beyond any competition. The company's economic strength allowed it to set prices for cars, diesel engines, trucks, refrigerators, and other goods and be sure that no buyer could change anything by refusing her services. Nevertheless. less government intervention was required to maintain this company, since the products of General Motors were inferior to those of Japanese automobile firms. Question 123: Mobilization of resources 1. An important task that management has to solve at the stage of implementing the developed strategy is the formation and mobilization of the organization's resources and its human potential. 2. The strategy for the use of human potential contains two important points. Firstly, the most important condition for the implementation of the strategy is the commitment, devotion of employees to the work in which it is engaged, as to their own. Secondly, the success of the implementation of the strategy largely depends on the extent to which the employees of the organization are inherent in the desire to achieve the best results. The ability and desire to work effectively is a professional trait that should be the focus of management attention and, in particular, be the subject of special attention at the stage of strategy implementation. 3. The allocation of the organization's resources to the individual components of the strategy is the most important condition for the effective use of resources and the implementation of this strategy. Since the external environment is dynamic, management must organize such a distribution of financial resources, in which the necessary funds would always be available at the right time. Question 124 1. In order to have financial resources, if necessary, management must establish strategic guidelines for the use of funds that fix: for what purposes expenses can be made and where money should not be invested (for more details, see Shevchuk D.A. Corporate finance. - M .: GrossMedia: ROSBUKh, 2008). Further, at the stage of implementing the strategy, it is necessary to analyze the needs for funds of individual structural units of the organization in order to solve their tasks and perform functions. The allocation of funds is identified and prioritized in such a way that funding is most conducive to the implementation of the strategy. 2. The process of mobilizing resources at the stage of implementing the strategy involves assessing and securing sources of capital inflow (for more details, see Shevchuk D.A. Banking operations. - M .: GrossMedia: ROSBUH, 2007). Management must also be aware of the opportunities and limitations of their use, the cost of capital, and do everything possible to preserve these sources and acquire new ones, if necessary, to implement the strategy. 3. The main instrument by which resources are allocated is the preparation and execution of a budget, which may concern not only cash, but also stocks, capital funds, sales, etc. The key role of the leadership of the organization in the implementation of the strategy is to make strategic changes and mobilize the potential of the organization. Question 125 1. A non-leading firm challenging the market environment must capture some part of the market by attacking: - leader; - weaker or smaller competitor. 2. An attack on a leader is possible if there are clear competitive advantages, and the leader has shortcomings. In doing so, the firm uses a wide range of covert measures that can be grouped into five approaches. The first approach is that the attacking firm delivers an open direct blow to the leader, that is, to his strengths. In such a fight, the one who has more resources and who has strong advantages wins. In the second approach, the firm carries out a flank attack on the leader. In this case, the attack goes in those directions where weaknesses are revealed in the leader. Usually such areas are either a region in which the leader does not occupy a strong position, or a need that his product does not cover. The third approach is to attack in all directions. In this case, the leader has to defend all his positions. This type of attack for successful completion requires much more resources from the attacking company, since it involves its promotion to all markets where the leader is present, for all types of products manufactured by him. The fourth approach is a bypass attack. In this case, the firm creates a new market, where it waits for the leader and, having advantages in this market, defeats him. The most common type of circumvention attack is the creation of a replacement product or the opening of new geographic markets. A bypass attack is widely used in the form of the development and introduction of new technologies for the production of a product. The fifth approach to conducting competitive struggle with the leader is "guerilla warfare". It is typical for small firms, but able to instantly change from one type of activity to another. The attack occurs at the moment of temporary weakening of the position of the strongest firm in the market. 3. The methods by which the above approaches are implemented include the following: - setting lower prices for products; - launching a new product on the market and instilling new needs; - increasing the level of customer service, improving the transportation and delivery of goods; - development of a system for marketing, distribution and promotion of the product; - distribution of advertising. Question 126 At the present stage of development of market relations in Russia, the growth of bankruptcy of "random" companies is clearly visible, which tried to organize their activities without using information about the structure and needs of the market, the established traditions in relations between structures working in this area. The competitive strategy of firms is focused on capturing those places in the market that do not arouse or arouse little interest from other firms. In order to successfully conduct commercial activities in these unoccupied market niches, a company must have a clear specialization, study its market segment very carefully, develop only within strictly verified allowable growth rates, and have a strong and influential leader (for more details, see Shevchuk D.A. How to make a business plan: the first step to your business - M.: AST: Astrel, 2008). Question 127 1. The basis of any organization is the staff, on which the competitive capabilities of the company depend. The prestigious organization seeks to stimulate its employees as efficiently as possible, creating all conditions for the most complete return of employees at work and their intensive development. 2. Strategic management is designed to ensure mutually beneficial cooperation between a person and an organization. Satisfaction of a person from cooperation with the organization, his attitude towards it, his contribution to the activities of the organization depend on a number of factors: - what he must sacrifice for the interests of the organization; - what are its main functions; - working conditions; - and many others. others 3. Strategic management is based on the potential, motivating the activities of employees. People are different in behavior, abilities; attitude to their work, organization, their duties. People have different needs, their motives for activities can differ significantly. Finally, people differently perceive the people around them and themselves in this environment. All this suggests that the management of a person in an organization is an extremely complex, but at the same time an extremely responsible matter. Question 128. International marketing. Its essence and role in the development of entrepreneurship 1. The recognition of international marketing as the "highest school of marketing" is explained by the fact that exports at all times have been distinguished by a high level of organization of trade. Enterprises operating in the foreign market are most in dire need of the application of marketing achievements. The concept of "international marketing" should be distinguished from the concept of "export". Traditional export is limited to the supply of domestic producers of their products to firms in another country, that is, importers, and does not apply to further sales. International marketing involves the systematic, systematic and active processing of international markets at various stages of promoting goods to the buyer. 2. The value of international marketing should be considered not only from the standpoint of general market ideas, but also more broadly - from the standpoint of internationalization (unification) of national economies. The internationalization of economic processes currently has a pronounced tendency to increase due to the action of economic, political, technological, socio-demographic and psychological-mental factors. 3. In the economic sense, the internationalization of production stimulates the international division of labor, its productivity, the expansion of the sphere of capital investment, the development of technology and methods of calculation. Small enterprises, previously oriented to the domestic market, enter the markets of other countries and increase their share of exports. Question 129: 1. International marketing reflects the scale of interaction between firms, when each one that has mastered the market of its country enters the market of another state (for more details, see Shevchuk D.A., Shevchuk V.A. Money. Credit. Banks. A course of lectures in a concise presentation: Educational method - M: Finance and statistics, 2006; Shevchuk D.A., Shevchuk V.A. Macroeconomics: Lecture notes. - M.: Higher education, 2006; Shevchuk D.A. Foreign economic activity: Textbook. - Rostov -on-Don: Phoenix, 2006; Shevchuk DA World Economy: Lecture Notes - Rostov-on-Don: Phoenix, 2007; Shevchuk VA, Shevchuk DA International Economic Relations: Textbook. - M.: RIOR Publishing House, 2006; Shevchuk D.A. International Accounting: Lecture Notes - Rostov-on-Don: Phoenix, 2007). Multilateral systems are characterized by the fact that a company that has been present in one or many markets is looking for an opportunity to penetrate a new market or several at once. 2. Organizational forms of international marketing, which relate to enterprises that carry out marketing operations in many foreign countries, are defined by the term "multinational marketing" and have complex marketing activities. Multinational firms are characterized by the presence of trademarks that are well known around the world; implementation of extensive international activities, as well as the distribution of company resources regardless of national borders. Firms that are limited to one or more foreign markets produce goods in their own country and sell them abroad, where the same type of marketing is used as in their own country. Multinational companies are more likely to use a global orientation strategy, operate in many countries, and use overseas manufacturing and sales offices that serve specific markets. The essence of the development of international marketing by stages is presented in the following table. Essence and stages of transition to international marketing 1 Traditional export The exporter is responsible until the sale and delivery of goods abroad 2 Export marketing The exporter systematically studies the development trends of the foreign market and establishes the production of goods that meet its requirements and standards. At the same time, the exporter controls the entire path of promotion of goods to the final consumer. 3 International marketing The exporter thoroughly explores the foreign market through a wide range of marketing tools and instruments using foreign economic relations: scientific and technical exchange, industrial cooperation, creation of joint ventures and subsidiaries 4 Global marketing (combined with international management) Marketing activities abroad cover not only sales, but also production management (typical of transnational corporations) Question 130 Features of international marketing are that its organization and methods of implementation should take into account a wide range of factors: - independence of the state; - national currency systems; - national legislation; - economic policy of the state; - linguistic, cultural, religious, everyday and other features. This means that international marketing is more significant and broader than national. The features of marketing in foreign markets include: First, the study of foreign markets, their opportunities. At the same time, it becomes necessary for exporting enterprises to create appropriate research units and (or) search for specialized consulting firms in the country where exports are (or will be oriented) that provide information on commodity markets for a fee. Secondly, for effective activity in foreign markets, it is necessary to follow the principles of marketing more carefully than in the domestic market. Foreign markets dictate high requirements for the goods offered in their markets, their services, advertising, etc. This is due to intense competition, the predominance of the "buyers' market", that is, a noticeable excess of supply over demand. Thirdly, in the foreign market, it is necessary to make the right choice and effectively use the following marketing methods: - maintain contact with foreign buyers directly or through agency firms; - sell goods directly or the right to produce them; - to participate in the auction independently or as part of consortiums; - use leasing (renting out goods) or limit yourself to selling goods. These and many other forms of export are used, taking into account the conjuncture and forecasts for the development of markets, the practice that has developed in them, and the nature of the exported goods. Fourthly, following the requirements of the world market (more precisely, the needs of buyers) means not only the need to comply with the conditions for the sale of goods adopted on it. Of decisive importance are the development and production of such export products, which, after entering the market, would be highly competitive for a long time. Question 131 Entering the international market and expanding trade relations with foreign partners is dictated by the following: - development of the internal market (saturation with goods; increasing competition; increasing dependence on intermediary trade; increasing fees related to environmental protection; difficulties in complying with domestic legislation); - the activity of foreign competitors in the domestic market forces us to look for new areas of activity; - overcoming dependence on the domestic market, seasonal fluctuations in demand and "dispersion" of risk by entering foreign markets; - maximum available and additionally created capacities; - reducing the cost of wages, raw materials, transport; reduction of tax payments; - use as a support of the state of the manufacturer, selected for international cooperation; - improving the efficiency of marketing activities by strengthening market positions, for example, through the creation of branches, branches, subsidiaries; expanding the network of service points; - compensation for fluctuations in the exchange rate by organizing partial production and marketing in the relevant currency; - gaining access to "know-how" by entering certain foreign markets, for example in the form of partnership with a foreign company; - avoiding tariffs and administrative restrictions on imports through cooperation with foreign firms; - ensuring long-term sales and economic growth; - reducing the overall risk of production by increasing the volume of products in physical terms, part of which is produced at its foreign divisions (firms); - setting up the production of individual products or components for them abroad and employing highly qualified personnel to solve more complex problems in their own country; - stabilization or expansion of the sphere of pricing policy. Question 132: Motives and stages of internationalization 1. Motives for internationalization for different countries can have different interpretations: - maximize the use of existing production capacities; - acquire the status of an exporter in your country; - anticipation of an economic crisis in their country; - the possibility of strengthening the financial position through exports for the modernization of production; - the possibility of obtaining foreign currency; - the desire to provide advantages over competitors in their country; - ensure higher profitability of turnover in foreign markets; - the desire to obtain valuable "know-how"; - Avoid strong competition in your country. 2. The adaptation of firms to external conditions implies an awareness of the process of internationalization, its features and stages. Stages of internationalization: - the local stage of development is characterized by local scale production; - the initial stage of internationalization is distinguished by the presence of contacts abroad through foreign dealers and agents; - the stage of development is characterized by extensive contacts with foreign contractors before the creation of a manufacturing enterprise abroad; - the growth stage involves the creation of manufacturing enterprises abroad, which are located in no more than six countries; - the multinational stage of internationalization implies the presence of manufacturing enterprises in more than six countries of the world (this stage is typical for transnational corporations). Question 133 1. As a result of internationalization, the industrial cycle is implemented within several states. Enterprises have not only market, financial and economic, but also technical ties. They become the center of international production, and the companies are the constituent parts of the international production and technological complex, working according to a single plan. Two new types of monopolies are created: - international; - transnational. Their economic mechanism transcends national boundaries, resulting in the creation of an international production and trade complex operating in different countries, but directed from one center. According to the form of ownership, two groups of monopolies are distinguished: - trusts and concerns (transnational and multinational monopolies based on common property); - inter-firm unions (cartels and monopolistic associations based on sales). 2. The traditional interpretation of an international monopoly is that it acts, firstly, as an association within the framework of a given private monopoly grouping of capitals of different national origin. Secondly, internationality presupposes the presence of connections in the field of sales. Transnational trusts and concerns are national in origin of their capital and international in scope. The prefix "trance" emphasizes this quality. Question 134: 1. Transnational corporations, according to UN experts, are the engine of the world economy. They included among them such firms that had an annual turnover exceeding $ 100 million, and branches in at least six countries. In recent years, the international status of the company is evidenced by such an indicator as the percentage of its sales outside the resident country. According to the UN methodology, an international corporation is characterized by a certain structure of its assets. 2. Transnational corporations have a number of specific features. - contribute to the international division of labor and its development; - the movement of capital of transnational corporations, as a rule, does not depend on the processes taking place in the country where the capital is based; - operate, as a rule, in high-tech industries. Question 135: Main types of international monopolies 1. Russian economists view transnational corporations as national monopolies with foreign assets. In the US, these are joint-stock companies. The legal regime of transnational corporations implies business activity carried out in various countries through the formation of branches and subsidiaries in them, which have relatively independent production and marketing of finished products. They conduct research and development and provide services to consumers. 2. Multinational corporations are international monopolies that unite national companies of a number of states on an industrial, scientific and technical basis. A distinctive feature of multinational corporations is the presence of: - multinational share capital; - multinational leading center; - the personnel knowing local conditions. 3. Global corporations emerged in the 80s. and represent the full power of modern finance capital. Companies in the chemical, electronic, electrical, oil, automotive, information and banking industries are most affected by the process of globalization. 4. Reasons for the emergence of transnational corporations: - internationalization of production and capital; - the desire to obtain excess profits; - Tough competition. Question 136 1. Expanding their expansion, transnational corporations use the following forms of market development: - licensing; - franchising; - management contracts; - provision of technical and marketing services; - delivery of the enterprise "on a turn-key basis"; - fixed-term contracts for the creation of joint ventures and agreements for the implementation of certain operations. In practice, transnational corporations use not one, but several of these forms. 2. License agreement - an agreement under which the licensor grants certain rights to the licensee for a certain time for an agreed fee. The transfer of licenses is carried out both under intra-company agreements of a transnational corporation, and through external channels of technology transfer. 3. Franchising is a kind of license agreement and is concluded for a long period. Franchising provides certain rights to the client firm, which include the use of a trademark or trade name, as well as technical assistance, workforce development, sales and management services for a fee. 4. Providing management and marketing services since the late 80s. is becoming a popular form of expansion for transnational corporations. An agreement for the provision of such services is an agreement under which operational control of an enterprise or a phase of its activity is provided to another enterprise for an appropriate fee (see, for example, D. Shevchuk. Credit consulting // Financial newspaper, 20/2006). Functions performed by contracted enterprises may include: - manufacturing control; - responsibility for the technical and engineering aspects of the work; - personnel management; - training of local labor force; - marketing and financial management. 5. Contracts for the provision of technical assistance establish relations for the provision of the following technical services: - repair; - recommendations on the use of "know-how"; - elimination of consequences of accidents; - quality control. Question 137: 1. Any company that aims to operate abroad faces a wide variety of trade restrictions, among which the most common is the customs tariff, that is, a tax on goods imported into the country. A customs tariff may be designed to increase revenue (fiscal tariff) or to protect the interests of domestic firms (protectionist tariff). 2. Another trade restriction is quotas, that is, the quantitative limit of goods of certain categories that are allowed to be imported into the country. Quota goals: - protection of the domestic commodity producer; - maintaining employment; - decrease in the outflow of foreign currency. The limiting form of the quota is the embargo - the prohibition of certain types of imports. 3. Currency control is carried out in order to regulate the amount of cash in foreign currency and its exchange rate for other currencies. 4. The firm may also face a number of non-tariff restrictions, such as discrimination against its product offerings and the existence of production standards that discriminate against imported goods. Question 133: 1. In world trade, there was a significant decrease in the level of customs duties, many restrictions were canceled, that is, liberalization took place. However, a number of problems remain, one of which is the growth of protectionist tendencies at the level of economic groupings, trade and economic blocs of countries that are largely opposed to each other. The first step towards the formation of trade and economic blocs is the creation of free trade zones. For example, the European Free Trade Association (EFTA), the European Union (EU), the North American Free Trade Area (NAFTA), the Asia-Pacific Economic Cooperation Organization (APEC), etc. The compositions of the nine largest international regional trading blocs are presented below: European Union (EU) - Austria, Germany, UK, Italy, Ireland, France, Spain, Portugal, Finland, Sweden, Denmark, Belgium, Luxembourg, Netherlands, Greece. North American Free Trade Agreement (NAFTA) - United States, Canada and Mexico. European Free Trade Association (EFTA) - Iceland, Norway, Switzerland, Liechtenstein. Asia-Pacific Economic Cooperation (APEC) - Australia, Brunei, Malaysia, Singapore, Thailand, New Zealand, Papua New Guinea, Indonesia, Philippines, Taiwan, Hong Kong, Japan, South Korea, China, Canada, USA, Mexico, Chile. Mercosur - Brazil, Argentina, Paraguay, Uruguay. South African Development Committee (SADC) - Angola, Botswana, Lesotho, Malawi, Mozambique, Mauritius, Namibia, South Africa, Swaziland, Tanzania, Zimbabwe. West African Economic and Monetary Union (WEMUA) - Côte d'Ivoire, Burkina Faso, Nigeria, Togo, Senegal, Benin, Mali. South Asian Association for Regional Cooperation (SAARC) India, Pakistan, Sri Lanka, Bangladesh, Maldives, Bhutan, Nepal. Andean Pact - Venezuela, Colombia, Ecuador, Peru, Bolivia. The formation of free trade zones does not mean unconditional progress in the implementation of the ideas of free trade or capitulation to protectionist principles. The dilemma of "free trade" or protectionism is transferred to a different level of foreign trade relations, at which the decision on the choice of the economic policy of a group of states in relation to third countries is determined. Question 139: The flow of the North American integration process at the corporate and industry levels is due to the high degree of interpenetration of capital and workforce of the United States and Canada. The nature of integration here is determined by powerful corporations. Question 140: In the development of international economic relations in the second half of the XX century. there was an increase in the role and importance of the former colonies and dependent territories - the so-called developing states (or countries of the "third world", "South", "liberated", etc.). The population of these states is approximately 3,2 billion people. Complex socio-economic processes are taking place in such countries. At the same time, the general trend in the development of the liberated states since the 60s. XNUMXth century becomes their growing differentiation. The differentiation of developing states implies both a change in the composition of the groups of developing countries themselves, and the relationship between the levels of development of individual countries within each of them. As a result of the process of differentiation, developing countries were divided into two "different poles": - the most developed - for example, Qatar, Kuwait, UAE, Bahamas, Bermuda; as well as the "newly industrialized countries" of Southeast Asia (the so-called "Asian tigers") and Latin America; - the poorest states - for example, a number of African countries (Mozambique, Ethiopia, Tanzania, Sierra Leone, etc.), some Asian countries (Nepal, Bhutan; Vietnam, etc.). Question 141: Features of "new industrial countries" 1. The stratification of the middle part of the developing states is distinguished both by the dynamic economic growth of some, and the stagnation and degradation of others that have failed to fit into the framework of modern international economic relations. Among the most successfully developing countries, new zones of "new industrialism" are emerging. 2. 'Newly industrialized countries' (NIEs) refer to the upper tier of developing countries, i.e. those that have approached the level of industrialized countries. The upper tier countries can be grouped as follows: - "new industrial countries" - Brazil, Mexico, Argentina, South Korea; - four "pillars" - Taiwan, Hong Kong, Singapore, South Korea; - four "dragons" - Indonesia, Thailand, Philippines, Malaysia. 3. General features of NIS. - the dominance of industrial production and capitalist forms of management; - the highest GDP growth rates; - high quality of life; - one-sided structure of exports and imports. Question 142: Political and legal environment 1. When deciding whether to establish economic relations with a particular country, at least four factors should be taken into account: - attitude to purchases from abroad; - political stability; - currency restrictions; - government intervention. The attitude to purchases from abroad in a particular country may be different. Thus, such purchases are favorably perceived in Mexico, which has been attracting investments from abroad for a number of years, offering benefits and services to foreign investors in choosing the location of the company, and, on the other hand, negatively - in India. The latter requires foreign exporters to comply with import quotas, blocks certain currencies, and sets as an indispensable condition the introduction of a large number of its citizens into the management of newly created enterprises. 2. Political stability contributes to maintaining the economic course in the country'. However, the ruling regime may react unfavorably to the formation of the property of a foreign firm (confiscate, block foreign exchange reserves; introduce import quotas and new taxes). An international marketer may find it profitable to do business in a country with high political risks, but the current situation will certainly affect the nature of his approaches to financial and business issues. 3. The third factor concerns restrictions or problems in connection with foreign exchange. Sometimes governments prevent the conversion of the national currency into others or even prohibit it. Usually the seller wants to receive income in the currency of their own country. Otherwise, the seller will probably accept the blocked currency. Then he is forced, at best, to purchase either goods that he needs, or goods that he can sell somewhere else for a currency that is convenient for him. In the worst case, to take his money out of the country where his enterprise is located, in the form of slow-moving goods that he will be able to sell elsewhere only at a loss for himself. Also, a big risk for the activity of the seller in foreign markets is associated with fluctuations in exchange rates. 4. The intervention of the state apparatus presupposes the existence of a system of assistance to foreign companies from the side of the host state represented by the customs service, the provision of sufficiently complete market information and other factors conducive to entrepreneurial activity. Question 143: Cultural environment and communication processes 1. Each country has its own cultural environment, that is, its own customs, rules and prohibitions. Before starting to develop a marketing program, the seller should find out the needs of the foreign buyer. Here are some non-traditional consumer market examples: - The average Frenchman uses twice as much cosmetics and toiletries as his wife. - Germans and French consume packaged pasta more than Italians; - Italian children love a sandwich with a chocolate bar; - In Tanzania, there is a belief that if children eat eggs, then when they grow up, they will become bald or become infertile. Ignorance of the cultural environment of a particular country can lead to failure when entering the international market. 2. Communication - the exchange of information in the management process. Communications are classified as follows: - between the organization and the external environment - advertising, public relations, reports; - between different levels of the organization along the ascending vertical - reports, proposals, memos and, downward - instructions, information materials; - horizontal - exchange of experience, business negotiations; - between the manager and the subordinate - task setting, motivation; - formal (service relations) and informal (rumors); - verbal (verbal) and non-verbal (poses, facial expressions, gestures). 3. The communication process is the exchange of information between its sender and recipient. The message presupposes the existence of a channel for the transmission of information corresponding to the idea and a feedback from the recipient of the message. In the process of communication, barriers arise in the form of different perceptions or interpretations: - language; - problems (for example, market expansion is understood by the manufacturer as an increase in costs and volumes, and by a marketer - as an increase in the range); - meaning of words; - behavior, etc. 4. There are several recommendations for effective communication: - do not interrupt or criticize the interlocutor; - show interest and patience; - create a comfortable atmosphere for communication and eliminate annoying factors. Question 144: 1. A well-established communication process in exemplary firms is expressed in communication with the following signs: - informal nature (meetings, friendly meetings, "round tables"); - high intensity (absence of prohibitions, restrictions on questions); - material support (slate boards are installed in all rooms, in dining rooms small tables are replaced by large ones, management services are assembled in complexes in one room - "under one roof"); - at close range, directly (program "open doors", interviews, surveys). 2. Business negotiations are held with the aim of solving the company's business problems through meetings of managers (professional managers). In this case, the task of "creating" a partner and satisfying his needs arises. The subject of business negotiations is disputes, transactions, etc. Features of negotiating with foreign partners: - foreign entrepreneurs carefully study the status of Russian partners, their fame and reputation in the domestic market; - business relations are formed under the strong influence of competition. At the same time, the terms of the transaction are often dictated not by the seller, but by the buyer. Conclusion: the first offer should not be accepted; - availability of individual means of communication. At the same time, fax is preferred as a means of communication; - continuity - it is easier to keep an old partner than to win a new one; - relationship support; - opening speeches were not accepted. It is practiced to show a video about your company within 20 minutes; - the presence of a cultural program; - the costs of negotiations are borne by the receiving party. Question 145 1. Firms are involved in international marketing activities in two ways: - with a request to organize a sale abroad; - independent organization. The reasons for this introduction may be production capacity that exceeds the needs of the domestic market, or more favorable marketing opportunities. 2. Before entering the foreign market, the firm must solve the following tasks of its international marketing: - determine the percentage of total sales in the foreign market. Some firms start small; others have grander plans; - she wants to work in several or many countries at once: - in what type of countries it will work. The seller's preference is formed on the basis of the characteristics of the proposed product, geographical factors, income level, composition and population, political climate and other features. Question 146 1. There are several strategic approaches when making a go-to-market decision: - export; - joint venture activities; - direct investment. Each of the above options for entering the market requires taking on more obligations and more risk, but also promises higher profits. All of these exit strategies are presented in the table below. 2. Possible options for the firm to enter the international market: - Export - Joint venture activities - Direct investment - indirect marketing - licensing - assembly plants - through a domestic agent, an exporting seller, traveling salesmen or a cooperative organization - contract manufacturing - manufacturing enterprises - through foreign distributors or agents - contract management - direct export - joint ventures - through a sales office or branch office abroad - through the export department located in your own country Question 147, Analysis and management decision-making under certainty The selection procedure is simple in case it is necessary to choose one of a known number of options, and includes the following steps: - the selection criterion is determined; - the "direct count" method calculates the values of the criterion for the compared options; - the variant with the best value of the criterion is selected. Methods for solving this problem can be based on: - discounted estimates; - accounting estimates. The first group of methods is based on the fact that the cash income received by the enterprise at different points in time should not be summed up directly - only the elements of the reduced flow can be summed up. The purpose of the discount factor is the temporal ordering of future cash receipts (income) and bringing them to the current point in time. Question 148 The procedural side of the analysis becomes much more complicated due to the multiplicity of alternative options: n > 2. The technique of "direct calculation" is not used in this case. The most convenient way to calculate the methods of optimal programming (in this case, the term means "planning"). There are many of these methods (linear, non-linear, dynamic programming, etc.), but in practice of economic research, linear programming has received preference. An example of choosing the optimal option from a set of alternatives can be the following problem of product transportation. When conducting analysis under conditions of certainty, multiple computer calculations, that is, the method of machine simulation, can be successfully applied. In this case, the simulation model of an object or process (computer program) contains the b-th number of factors and variables, the values of which in different combinations are subject to variation. Thus, machine simulation is an experiment under specially created conditions, as a result of which the basic options for making a final decision are selected based on specified criteria. Question 149 Formalized analysis algorithms are rarely used due to the difficult assessment of the probability of outcomes in order to develop ways to maximize profits. Therefore, when analyzing and making managerial decisions under conditions of uncertainty, other criteria are used: - maximin - maximization of the minimum profit; - minimax - minimization of maximum losses; - maximax - maximization of maximum profit, etc. Question 150, Analysis and management decision-making in conflict situations Analysis and management decision-making in the context of conflict is a complex and poorly developed analysis from a practical point of view. Similar situations are widespread in game theory. The estimates obtained as a result, along with taking into account additional criteria, including those of an informal nature, serve only as a basis for making a final decision. Question 151 1. Modeling in scientific research began to be used in ancient times and gradually developed independently by individual sciences. In the XX century. modeling as a universal method of scientific research covers a wide range of scientific knowledge: technical design, construction and architecture, astronomy, physics, chemistry, biology and, finally, social sciences. Modeling refers to the process of developing, building and researching models. The modeling process most often consists of building abstractions and inferences by analogy and constructing scientific hypotheses. 2. The model represents a material object, which in the process of research replaces the original object in such a way that its direct study provides new knowledge about the original object. 3. The main feature of modeling is that it is a method of indirect cognition through substitute objects. The model serves as a tool of knowledge that the researcher puts between himself and the object and with the help of which he studies the object of interest to him. It is this feature of the modeling method that determines its specific features: the use of abstractions, analogies, hypotheses, other categories and methods of cognition. The modeling process includes: - the subject of the study - the researcher; - object of study - the original object of interest; - subject of research - model. 4. The need to use the modeling method is determined by the fact that many objects (or problems related to these objects) are difficult or impossible to study directly. Question 152 1. The first stage of building a model assumes some knowledge about the original object. The cognitive capabilities of the model A B are due to the fact that it reflects some essential features of the original object B. The problem of the necessity and sufficient measure of similarity between the original and the model is solved on the basis of a specific analysis. Obviously, the model loses its meaning both in the case of complete identity with the original (then it ceases to be the original), and in the case of its absence. Any model represents the original only in a strictly limited sense. Therefore, for one object, several "specialized" models can be built, focusing attention on certain aspects of the object under study or characterizing the object with varying degrees of detail. 2. At the second stage, the model acts as an independent object of study. One of the forms of such a study is the conduct of "model" experiments, in which the conditions for the functioning of the model are deliberately changed and a systematic analysis of its "behavior" is carried out. This is how knowledge about the model is formed. 3. At the third stage, according to certain rules, the received data about the model are transferred in relation to the original - the formation of a set of knowledge about the object. The data about the model must be corrected taking into account those properties of the original object that were not reflected or were changed during the construction of the model. 4. At the fourth stage, the practical verification of the knowledge obtained through modeling and their use to build a general theory of the object, its transformation or management are carried out. At the same time, it must be remembered that modeling is only a type of cognition process and cannot serve as the only source of knowledge about an object. 5. The modeling process is characterized by a cyclical flow. At the same time, at each subsequent stage, knowledge about the object under study is expanded and refined, and the original model is gradually improved. Deficiencies found as a result of the first simulation cycle are corrected during subsequent cycles. Question 153 1. Most of the phenomena studied by economic science can be characterized by the cybernetic concept of "complex system". The most common understanding of the system as an integral set of interacting elements. 2. An important quality of any system is the presence of properties that are not inherent in any of its elements. There are almost no economic objects that could be considered as separate (non-systemic) elements. Therefore, economic research within a single system is difficult. 3. The complexity of the system is justified by the set of elements included in it, the connections between these elements, as well as the relationship between the system and the environment. The economy of any developed country has all the features of a complex system that combines a huge number of elements that are distinguished by a variety of internal connections and connections with other systems. So, natural, technological, social processes interact in the national economy. 4. The complexity of the study of the economy is sometimes due to the impossibility of its modeling, study by means of mathematics. But any object of nature of varying complexity can be modeled, and it is modeling that can give results that cannot be obtained by other methods of research (for more details, see Shevchuk V.A., Shevchuk D.A., Samokhina E.A. Modern methods of economic research. - M : "News of higher educational institutions. Geodesy and aerial photography", special issue, 2002). The potential ability of mathematical modeling of any economic objects and processes does not mean its successful feasibility at a given level of economic and mathematical knowledge, available specific information and computer technology. And although it is impossible to determine the absolute boundaries of the mathematical formalizability of economic problems, there will always be still unformalized problems, as well as situations in which mathematical modeling is not effective enough. Question 154: 1. For a long time, the practical application of mathematical modeling in the economy has been hindered by the accumulation of specific and high-quality information. The accuracy and completeness of primary information, the real possibilities of its collection and processing largely determine the choice of the type of applied model. On the other hand, new studies on economic modeling put forward new requirements for the information system (for more details, see Shevchuk D.A. Economic journalism. - M .: GrossMedia: ROSBUH, 2008). The input information obtained during the modeling process can be divided into two categories: - about development, that is, about the past and present state of objects (economic observations and their processing) and development prospects; - separate independent researches. 2. Methods for economic observations and the use of the results of these observations are developed through the toolkit of economic statistics. In the economy, many processes are of a massive nature and therefore are not detected on the basis of only one or a few observations. Such properties of economic phenomena as their dynamism, variability of their parameters and structural relationships require constant monitoring and an influx of new data. Since when building mathematical models of the economy, it is required to correct the initial information, taking into account its delay. 3. Knowledge of the quantitative relations of economic phenomena is based on measurements. Therefore, a necessary condition for the successful use of mathematical modeling is the improvement of economic indicators. The application of mathematical modeling revealed the problem of measuring and quantitative comparisons of various aspects and phenomena of socio-economic development, the reliability and completeness of the data obtained, and their protection from intentional and technical distortions. 4. In the modeling process, there is an interaction between "primary" and "secondary" economic measures. Any model of the national economy is based on an appropriate system of economic indicators (products, resources, elements, etc.). At the same time, one of the important results of national economic modeling is the obtaining of new (secondary) economic indicators - economically justified prices for products of various industries, estimates of the effectiveness of natural resources of different quality, and indicators of the social utility of products. However, these meters can be formed from insufficiently substantiated primary meters, which forces the development of a special methodology for adjusting primary meters for business models. Currently, the most relevant aspects of improving economic indicators are: - assessment of the achievements of intellectual activity (especially in the field of scientific and technical developments, the information industry); - derivation of generalizing indicators of socio-economic development; - measuring the effectiveness of feedback (the impact of economic and social mechanisms on production efficiency). Question 155: Randomness and uncertainty in economic development For the methodology of economic planning, the concept of economic development uncertainty plays a significant role. There are two types of uncertainty: - "true", based on the properties of economic phenomena; - "informational", caused by the need to collect and clarify data. True uncertainty should not be confused with the objective existence of various options for economic development and the possibility of a conscious choice among them of effective options. We are talking about the fundamental impossibility of an exact choice of the only possible (optimal) option. 2. In the process of economic development, uncertainty is caused by two main reasons: - unpredictability of the course of planned and controlled processes (scientific and technological progress, the needs of society, economic behavior), as well as external influences on these processes due to the action of random factors and the limitations of human knowledge at any given moment; - the lack of influence of nationwide planning and management, the presence of many independent economic entities with special interests that do not allow accurately predicting the results of their interactions. The incompleteness and inaccuracy of information about objective processes and economic behavior constitute true uncertainty. In models of a deterministic type, used at the first stages of research, all parameters must be known, which does not deprive the possibility of choosing from feasible solutions. Thus, the classical representative of rigidly deterministic models is the optimization model of the national economy, which is used to determine the best option for economic development among the many possible options. Then real opportunities were created for the successful application of a more advanced methodology for modeling economic processes, which already take into account stochastics and uncertainty. 3. There are two main directions for improving the methodology for modeling economic phenomena: - use of rigidly deterministic models: - distribution of the model, which directly reflects the stochastics and uncertainty of economic phenomena and uses the appropriate mathematical apparatus. The methodology for using models of a strictly deterministic type involves: - carrying out calculations and model experiments with many variations; - study of the stability and reliability of the solutions obtained, the allocation of the zone of uncertainty; - inclusion in the model of reserves, the use of techniques that contribute to the applicability of economic decisions to probable and unforeseen situations. Models reflecting the uncertainty of economic phenomena use the following mathematical apparatus: - Theory of Probability and Mathematical Statistics; - theory of games and statistical solutions; - queuing theory; - stochastic programming; - Theory of random processes. Question 156 1. The complexity of economic phenomena and other features of economic systems noted above make it difficult not only to build mathematical models, but also to verify their adequacy, the truth of the results obtained. In the natural sciences, a sufficient condition for the truth of the results of modeling, as well as any other way of knowing, is the coincidence of the results of the study with the observed facts. The category "practice" here reflects the category "reality". 2. In economics and other social sciences, the "practice is the criterion of truth" principle refers to a greater extent to simple descriptive models used to passively describe and explain reality (analysis of past development, short-term forecasting, etc.). However, the main task of economic science is inherently constructive and consists in the development of scientific methods for planning and managing the economy. Therefore, a common type of mathematical models of the economy are models of controlled and regulated economic phenomena used to transform economic reality, that is, normative models. 3. The specifics of the verification of normative models of the economy is that they "compete" with other methods of planning and management that have already found practical consolidation. At the same time, it is far from always possible to carry out a pure experiment to verify the model, eliminating the influence of other control actions on the modeled object. The issue of verifying long-term forecasting and planning models (both descriptive and normative) is more difficult to solve, since it is unacceptable to passively wait for the occurrence of events for a long time in order to verify the correctness of the model's assumptions. 4. The correspondence of the model to reality, as the most important criterion that determines the directions for improving models, is detected using logical analysis, which includes the means of mathematical modeling itself. Such formalized methods of model verification as proving the existence of given categories in a model, testing the validity of statistical hypotheses about relationships between model parameters and variables, comparing the dimensions of quantities, etc., make it possible to narrow down the class of potentially “correct” models. 5. The internal consistency of the prerequisites of the model is found by comparing the obtained consequences of using, including "competing" models. Considering the relevance of the problem of the adequacy of mathematical models to the realities of the economy, it should be recognized that the creation of a constructive integrated methodology for verifying models is still one of the most urgent tasks of economic and mathematical research (for more details, see Shevchuk D.A. Economic journalism. - M .: GrossMedia: ROSBUKh, 2008). Question 157: 1. Economic and mathematical models are classified for different reasons. By purpose, they are divided into: - theoretical and analytical - in studies of general properties and patterns; - applied - in solving specific economic problems (models of economic analysis, forecasting, management). Economic and mathematical models can be used in the study of various aspects of production and its individual parts. According to the substantive issues studied by economic processes, economic and mathematical models are divided into: - models of production in general and its subsystems - industries, regions, etc.; - complexes of models of production, consumption, formation and distribution of income, labor resources, pricing, financial relations, etc. In accordance with the general classification of mathematical models, they are divided into: - functional; - structural; - structural and functional. The use of structural models in research at the economic level is justified by the interconnection of subsystems. Typical in this case are models of intersectoral relations. Functional models are widely used in the field of economic regulation. Typical in this case are models of consumer behavior in terms of commodity-money relations. One and the same object can be presented in the form of both structural and functional models at the same time. So, for example, a structural model is used to plan a separate industry system, and a functional model is used at the economic level. 2. Differences between descriptive and normative models are revealed when considering their structure and nature of use. Descriptive models provide an answer to the question: "How does this happen?" or "How is this most likely to develop further?", that is, they explain the observed facts or predict the likelihood of any facts. The purpose of the descriptive approach is the empirical identification of various dependencies in the economy. This may be the establishment of statistical patterns of economic behavior of social groups, the study of probable ways of development of any processes under unchanged conditions or without external influences, and other studies. An example here is a consumer demand model built on the basis of statistical data processing. Normative models are recognized to answer the question: "How should it be?", that is, they imply purposeful activity. A typical example is the optimal planning model. The economic-mathematical model can be both descriptive and normative. Thus, the intersectoral balance model is descriptive if it is used to analyze the proportions of the past period, and normative when calculating balanced options for the development of the economy. 3. Signs of descriptive and normative models are combined if the normative model of a complex structure combines separate blocks that are private descriptive models. Thus, the intersectoral model may include consumer demand functions that reflect the behavior of consumers when income changes. The descriptive approach is widely used in simulation modeling. By the nature of the discovery of cause-and-effect relationships, there are rigidly deterministic models and models that include elements of randomness and uncertainty. It is necessary to distinguish between uncertainty based on the law of probability theory and uncertainty that goes beyond the application of this law. The second type of uncertainty causes big problems in modeling. 4. According to the ways of reflecting the time factor, economic and mathematical models are divided into: - static; - dynamic. In static models, all the laws of the economy refer to one moment or period of time. Dynamic models characterize changes over time. According to the length of the time period, models of short-term (up to a year), medium-term (up to 5 years), long-term (5 years or more) forecasting and planning are distinguished. The flow of time in economic and mathematical models can change either continuously or discretely. Models of economic phenomena differ in the form of mathematical dependencies. The class of linear models is most convenient for analysis and calculations. But there are the following dependencies in the economy, which are non-linear: - efficient use of resources while increasing production; - change in demand and consumption of the population with an increase in production; - change in demand and consumption of the population with income growth, etc. According to the ratio of exogenous and endogenous variables included in the model, they can be divided into open and closed. A model must contain at least one endogenous variable, so there are no absolutely open models. Models that do not include exogenous variables (closed) are exceptionally rare - their construction requires complete abstraction from the "environment", that is, a serious coarsening of real economic systems that always have external connections. Basically, the models differ in the degree of openness (closedness). For business-level models, division into is important. aggregated and detailed. Depending on whether economic models include spatial factors and conditions or do not include, spatial and point models are distinguished. With the growth of achievements in economic and mathematical research, the problem of classifying the applied models becomes more complicated. Along with the emergence of new types of models (especially mixed types) and new grounds for their classification, the process of integrating models of different types into more complex model constructions is taking place. Question 158 1. When posing an economic problem and its qualitative analysis, it is necessary: - highlight the essential features and properties of the modeled object; - to study the structure of the object and the main dependencies of the elements connecting it; - formulate a hypothesis of the behavior and development of the object. 2. At this stage of building a mathematical model, the economic problem is formalized, expressed in the form of specific mathematical dependencies and relationships (functions, equations, inequalities, etc.). Usually, the main construction (type) of the mathematical model is first determined, and then the details of this construction are specified (a specific list of variables and parameters, the form of relationships). Here it is important to remember that the excessive complexity and cumbersomeness of the model complicate the research process and it is necessary to compare the costs of modeling with the effect obtained (as the complexity of the model increases, the increase in costs may exceed the increase in effect). One of the important features of mathematical models is the potential possibility of their use for solving many problems. Therefore, when faced with a new economic task, it is advisable not to "invent" a new model, but to try to apply the already known one. 3. Mathematical analysis of the model serves as a means of clarifying the general properties of the model, proving the existence of solutions in the formulated model (existence theorem). Analytical study of the model reveals the following questions: Is there a unique solution? - what variables (unknowns) can be included in the solution and their ratio; - to what extent and under what conditions they change; - what are the trends of model changes, etc. The analytical study of the model, in contrast to the empirical (numerical) one, makes it possible to draw invariable conclusions with a variety of specific values of the external and internal parameters of the model. Researchers deliberately go for the idealization of the original model in order to gain knowledge about the properties of the model. But since models of complex economic objects are very difficult to analyze analytically, and model simplifications lead to unacceptable results, in this case they turn to numerical methods of research. 4. Preparation of initial information (within a certain period of time) and the costs associated with it (which should not exceed the effect of using additional information) limit the choice of models intended for practical use. At the stage of preparing information, methods of probability theory, theoretical and mathematical statistics are widely used. In systemic economic and mathematical modeling, the information used in some models is the result of the functioning of other models. 5. Numerical solution includes the development of algorithms, the compilation of appropriate programs and direct calculations. The difficulties of this stage are due to the large volume of economic tasks, the need to process significant amounts of information. Usually, calculations based on the economic-mathematical model have a multivariate character. Thanks to the progressive capabilities of computers, it is possible to carry out numerous "model" experiments, studying the "behavior" of the model under various changes in certain conditions. A study carried out by numerical methods can serve as an addition to the analytical one or, for many models, be the main one, the only one feasible. The range of economic problems that can be solved by numerical methods is much wider than the problems accessible to analytical research. 6. At the stage of analysis of numerical results and their application, the question arises of the correctness and completeness of the simulation results, the degree of practical applicability of the latter. Mathematical verification methods can reveal signs of incorrect model building. 7. The interrelationships of the stages are manifested in the fact that in the process of research, shortcomings of the previous stages of modeling are revealed. Mathematical analysis of the model can reveal the inconsistency or excessive complexity of the mathematical model and, in accordance with this, the need to correct or modify the original formulation of the problem. If the shortcomings cannot be corrected at the intermediate stages of modeling, they are eliminated in subsequent cycles. The results of each individual stage matter. Having obtained useful research results when building a simple model, you can move on to creating a more advanced model, supplemented by new conditions, including refined mathematical dependencies. 8. With the improvement of economic and mathematical modeling, its individual stages are separated into specialized areas of research, the differences between theoretical-analytical and applied models are intensified, and models are differentiated by levels of abstraction and idealization. The theory of mathematical analysis of economic models has become a separate branch of modern mathematics - mathematical economics. The models studied in the framework of mathematical economics lose their direct connection with economic reality - they deal with exclusively idealized economic objects and situations. The principle of constructing such models is not so much an approximation to reality as obtaining the largest possible number of analytical results through mathematical proofs. The value of models studied in the framework of mathematical economics for economic theory and practice lies in the fact that they serve as a theoretical basis for applied models. Preparation and processing of economic information and the development of mathematical support for economic problems (creation of databases and information banks, programs for automated model building and software services for user economists) become separate areas of research. At the stage of practical use of models, experts in the relevant field of economic analysis, planning, and management should be involved. Economists-mathematicians carry out the formulation and formalization of economic problems and the synthesis of the process of economic and mathematical modeling. Question 159 1. Improving the system of economic information through the use of mathematical methods involves its ordering, updating and adjustment (for more details, see Shevchuk D.A. Economic journalism. - M .: GrossMedia: ROSBUH, 2008). 2. The intensification and improvement of the accuracy of economic calculations occurs due to the formalization of economic tasks and the use of computers and involves: - multiple acceleration of standard, mass calculations; - accuracy of calculations; - reducing the complexity of calculations; - carrying out multi-variant economically justified complex measures that were not available under the dominance of "manual" technology. 3. Deepening the quantitative analysis of economic problems through the use of mathematical modeling methods involves: - significant possibility of specific quantitative analysis; - in-depth study of many factors influencing economic processes; - quantitative assessment of the consequences of changing the conditions for the development of economic objects. A. The solution of fundamentally new economic problems is possible through mathematical modeling. For example, the establishment of automated control of the functioning of complex economic objects. However, the use of a mathematical model is effective only if there is a certain set of necessary conditions, including sufficient information, mathematical and technical support. Therefore, systems for developing and making economic decisions should combine formal and informal methods. Formal methods as a means of scientifically substantiated preparation of material for human actions in management processes make it possible to productively use the experience and intuition of a person, his ability to solve insufficiently formalized tasks. Question 160 The phenomenal growth in the number of commercial banks in recent years has inevitably led to the emergence of competition between them. The leaders of the bank were faced with such problems as the choice of strategic management for the development of the bank, the formulation of a global goal and the setting of specific tasks for its main divisions, the definition of the basic principles of tactics and policy in all areas of banking without exception. To solve these problems, the bank's management needs to analyze all possible development options. And one of the aspects that needs to be given great attention is marketing. Bringing banking products to the consumer is one of the most important tasks that marketing is designed to solve. The success of the bank's activity fully depends on the quality of the solution of this problem. The process of bringing services to the consumer is solved through the functioning of the so-called delivery systems. Types of delivery systems can vary widely, so marketing faces the problem of choosing one that will match the level of service, place and time of banking services. Banking marketing in foreign practice was formed on the basis of achievements in this area of large industrial and trading firms. In Russia, the development and study of marketing began almost simultaneously in all commercial structures. The definitions of banking marketing found in the literature are quite diverse. "Marketing is not only the act of selling products. It is the strategy and philosophy of the bank." "Bank marketing is the search for the most profitable markets for banking products, taking into account the real needs of the clientele." "Marketing in the banking sector should be aimed at studying the market for credit resources, analyzing the financial condition of customers and predicting, on this basis, attracting deposits to the bank and shaping the further behavior of the bank." "Marketing is a market strategy for the creation, promotion and sale of products (services). Bank marketing involves the use of a certain set of techniques in order to meet the needs of customers in banking services in a profitable way for the bank." For the first time, the concept of banking marketing began to be developed in the United States in the 1950s. In Western Europe, the need to use marketing in banks came a little later (1960s). In the mid-1970s, the concept of bank marketing became widespread. For example, in Italy until the 1960s, the banking system and banking legislation were relatively static. Banks operated in a free monopoly regime (there was practically no competition between them, and the relationship between the bank and the client was always considered in favor of the bank). In the 1970s, the situation changed. The technological revolution has led banks to look for new customers. Enterprises began to give preference to settlements through the bank (with suppliers for the payment of wages), which brought the bank closer to customers. In turn, customers begin to apply to the bank for new services more often. Since the 1980s, the Italian banking system has undergone significant changes, in particular, many restrictions on banks have been lifted, which led to increased interbank competition, and their attitude to the market has changed. Banks have evolved from product-oriented organizations to market-oriented organizations. Banks began to pay more and more attention to the development of the service sector and sought to "attach" the client to the bank. Marketing began to be seen not as a new technology, but as a philosophy. Currently, banks already know what marketing means to them, they are focused on meeting the needs of market customers, experts note that over the past 25 years, banking marketing has changed dramatically. Banking Marketing Techniques: In the process of developing and implementing the bank's customer service strategy, certain banking marketing techniques were developed, which have become a necessary attribute of any bank's activities. Some of them are discussed below. A) market segmentation. Currently, banks offer customers new types of products and services, and the process of globalization of relations with the client is underway. Banks strive to satisfy all the needs of the client. This approach leads to the need for market segmentation. Advertising is usually targeted at certain categories of customers. To define a circle customers to whom a certain service can be provided, the bank conducts market segmentation (by customers and services). The bank first creates a permanent clientele, then uses a penetration strategy (offers its services to as many clients as possible), and then - a development strategy - seeks to attract new clients. Segmentation is used to create a "gamut of banking services". B) Creation of a range of banking services. Providing customers with one (basic) service in various modifications. C) Accounting for the stage of the life cycle of banking services. The approach, called life cycle analysis, is applicable to any developing structure (bank, client, service, etc.). The first stage of the life cycle is the introduction of new banking operations and services, the second stage is the development stage, the third is the decay stage and the fourth is the dying stage. From a marketing point of view, it is important to determine what phase of development a product is in. It is important for the bank to create a product range consisting of products in the third phase (providing maximum profitability, bank income), a few products in the second and first phase, and as little as possible in the fourth phase. D) Diversification in the marketing sense. This is an increase in the typology of products, customers and territorial zones. It is difficult for a bank to use all three factors at the same time, so banks choose a diversification strategy called; expansion, if the bank does not offer new products on the market, but expands the range of customers by providing them with old services; implementation, if the bank offers new products. D) Price setting. In marketing, it is important to take into account not only the well-known and generally accepted price determination formula in the economy: Cost + Profit = Price. It is also important to consider the appearance of the product. In addition, the psychological aspect of the buyer and seller is important. The psychological price is a subjective category, which can be both overestimated and underestimated. The BANK's marketing strategy in its development has a number of limitations. This is, first of all, the degree of regulation of banking activities in the country, bearing in mind the role of the state represented by the central bank in the banking system (in particular, its role in the process of monetary regulation of banking activities). In addition, it is necessary to take into account the economic restrictions on the activities of banks. Banks are forced to create insurance funds in order to overcome or minimize external and internal risks. The work of banks is significantly influenced by competition, which should also be considered from the point of view of restrictions on the activities of banks. Indeed, the strengthening of interbank competition, as well as competition between banks and non-bank credit institutions, cannot leave banks indifferent. They are forced to respond to it, and develop their own marketing strategy, taking into account the competition. The activity of banks also has technological limitations. Banks are a capital-intensive sector of the economy, as they act both as service enterprises and as large consumers of the latest technologies. The above limitations of the bank's activity should be taken into account when developing the bank's marketing strategy. The foregoing leads to the following conclusions: 1. In the context of general economic instability, increased interbank competition and declining profitability of classic banking operations, Russian banks are forced to use marketing techniques in their activities. 2. Given the many years of experience of Western banks in introducing marketing into banking practice, it is advisable to use the most advanced, progressive experience in this area on the Russian market. The activity of the bank is focused on serving individuals (the population) and corporate clients (organizations, enterprises, etc.) Motives that encourage the client to purchase banking services: A) profit, or savings, i.e. The goal of a client purchasing a banking service is to make a profit or accumulate savings; B) security; B) quality of services; D) elasticity of services; D) speed; E) guaranteed service; G) convenience; h) reputation. Private banking ("Private banking") private banking - private banking services for individuals - originated in Western Europe at the end of the 1998th - beginning of the XNUMXth centuries. Gradually, it turned into a special institution, implying the highest level of reliability and competence - many banks managed the capitals of wealthy families for centuries. Here, two main principles of private banking have been developed: lengthening the life of capital, ensuring the financial stability of the family from generation to generation, and maximum trust in the relationship between the bank and the client, which is formed thanks to multiservice that satisfies the needs of rich and demanding people. In practice, within the framework of private banking, a bank manager is attached to a client - an individual, who deals exclusively with managing the assets of this client. It is worth noting that private banking is far from a new phenomenon for Russia: this sector made its first steps even before the XNUMX financial crisis. “Western models were externally copied, but the reasons for the development of this service sector in developed economies and in our country were different. In the United States, for example, special attention is paid to the diversity and quality of services provided, but in our country, for understandable reasons, the confidentiality of information was more valued, which the client provided to his trusted banker.The "critical minimum" of the amount at which a manager was attached to a person was also different. The universally recognized standard of banking for a wealthy client is a Swiss private bank that provides private banking services. Literally over the past year or two, the practice of private banking has successfully developed in Russia. Private banks arose in Switzerland in the middle of the XNUMXth century.when the founders-individuals pooled their capital to conduct banking activities. The very concept of "private bank" appeared not because such a bank served only private clients, but because the bank belonged to private individuals. Clients came to the founders, gave them their money. And the shareholders of the bank were responsible for these deposits with all their property, they were fully jointly and severally liable. Now Swiss private banks, of course, do not bear unlimited liability for their obligations. However, they still deal with the family financial affairs of persons with a large fortune. As a rule, a Swiss private bank is organized as a club structure with annual membership fees. Most of these credit organizations have rich traditions. Sometimes two or three generations of a family could be served in the same bank. In Russian practice, the term "private bank" is often perceived as any non-state. What is invested in the concept of "classic Swiss private bank?" These are the founders - private individuals and clients - also only private individuals. In modern Russia, there was no analogue to this yet. Of course, there are banks in which the founders are individuals, but banks are universal: they provide services to both individuals and companies. Russian private banking originated as a VIP service of some universal banks for "the most expensive clients." However, literally over the past year, this practice has developed into a completely separate area of banking activity. Of course, private banking in Russia, as well as in Switzerland, is understood as an individual service for private wealthy clients, and a range of banking services and products that is not inferior in scope and quality to that provided by Swiss private banks. There is one "but": only a few banks provide a financial planning service that combines all banking products provided to an elite client into a single complex. The main difference between Russian private banks is that a potential client of a Swiss bank must prove his own respectability, provide recommendations from clients already served. In Russia, the opposite is true so far: banks are looking for clients and must prove that they can manage personal capital professionally and without risk. Domestic private banks have only recently appeared, they do not yet have a two-hundred-year history, although this, as they say, is a matter of time. After all, our banks, in addition to the high professionalism of their employees, have Russian clients - our main asset. Compatriots are the best clients of a private bank. They are friendly and very devoted to the bank, conscientiously fulfill all their obligations. They are not spoiled or spoiled. Private banking is a whole package of services: various operations with bank accounts, plastic cards, individual tax planning and financial consulting services, investment banking services, client asset management, private real estate management. Of course, the client can purchase all these services separately. But it will be much more effective to combine them as part of financial planning. Schematically, a financial plan is a detailed list of the client's income and expenses for several years ahead. It takes into account the tax obligations of the client, the preservation of the inheritance and the management of the transfer of inherited property, asset management. In accounting language, financial planning means drawing up a personal balance of assets and liabilities of the client (in the West, the term "profit and losses" is used). Such a table is built in the statics of the current moment. There are certain assets and liabilities, and it is assumed that the client will no longer place his funds anywhere and borrow nothing. The financial plan gives a picture of the most rational distribution of positive and negative cash flows over time, allows you to predict when the client should take out a loan, and when to invest his free money. The financial plan is periodically adjusted in accordance with changing situations. Thus, financial planning is a comprehensive solution for managing the client's capital, a higher level of private banking. In Switzerland, this service is called "family office". The client orders only financial planning, within which he already receives the entire palette of banking products. Credit consulting The specialization of companies providing consulting services can be different: from narrow, limited to any one direction of consulting services (for example, audit), to the widest, covering the full range of services in this area. Accordingly, each specialist (or each company) working in this field, puts the concept of consulting in its own meaning and gives it its own shade, determined by the direction of a particular company. Credit consulting - the provision of consulting services in the field of attracting credit and investment financing for legal entities and individuals (for more details, see Shevchuk D.A., Shevchuk V.A. Money. Credit. Banks. A course of lectures in a concise presentation: Educational method. - M: Finance and statistics, 2006). Credit consulting is a new type of business that is actively spreading today. Given the ever-increasing interest of our clients in funds attracted from outside for business development, an objective need arose for the development of such a type of service as consulting on loans (for more details, see Shevchuk D.A. Banking operations. - M .: GrossMedia: ROSBUH, 2007). Along with this, the offer of various credit programs by banks is also growing. Each of them not only offers the client special conditions, but also requires him to provide a completely specific set of documents and guarantees. It is becoming more and more difficult for a potential recipient of a loan to navigate independently in this area and it is becoming easier to get lost in this stream. Consulting is a type of intellectual activity, the main task of which is to analyze, justify the prospects for the development and use of scientific, technical and organizational and economic innovations, taking into account the subject area and client problems. Consulting solves the issues of management, economic, financial, investment activities of organizations, strategic planning, optimization of the overall functioning of the company, doing business, research and forecasting sales markets, price movements, etc. In other words, consulting is any assistance provided by external consultants, in solving a particular problem. There may be other situations when it is better to invite a consultant. Common criteria for all of them are: - The presence of a problem; - Lack of time or human resources to solve the problem; - Lack of special knowledge to solve the problem; - The high price of the issue. There is no need to say that the invited consultant must be a conscientious professional - this is a prerequisite. However, there are a number of fundamental factors that determine the success of the client's interaction with consultants: - Proper selection of a consultant. No consultant can know everything. Some consultants are good for solving some kinds of problems, others are good for others. Therefore, the right selection of a consultant for a specific problem is extremely important. It should be borne in mind that a well-known name does not always guarantee the correct selection. There are many highly specialized and simply obscure consultants that the client may not know about until he encounters a problem that requires their participation. The main thing here is to evaluate the methodology and practical experience that the consultant offers to solve the client's problems (for more details, see Shevchuk D.A. Creation of own firm: Professional approach. - M.: GrossMedia: ROSBUH, 2007). - Communication. The consultant and the client must use a similar conceptual apparatus or, in other words, speak the same language. Otherwise, a situation may arise when the consultant, using his analytical tools, will be able to identify the problem and find ways to solve it, but the client may not understand the recommendations of the consultant. Therefore, it is necessary to agree in advance on the meaning of those concepts and terms that both the client and the consultant use. - The level of training. Recommendations have an effect only when implemented. But in order to use the recommendations of the consultant, the client sometimes needs to have an appropriate minimum level of training. Just as the implementation of even the most detailed workflow requires a certain level of technical expertise, so the implementation of the most detailed management recommendations requires a certain level of managerial expertise. If such a problem occurs, additional measures must be taken to ensure such training. - Understanding goals and objectives. There are situations when the client does not clearly understand what exactly he wants, but he is determined to achieve it. This usually leads to the most serious problems in the interaction between the client and the consultant. Therefore, it is necessary to jointly determine the goals and objectives, and only then start work. Thus, the second part of the question formulated in the title of this article can be answered as follows: you need to study in any case - knowledge will never hurt, even if (one might say - especially if) consultants are invited. However, the training itself, without the practical application of the acquired knowledge, is worth little. When was the last time any of the top managers of enterprises had the opportunity to attend a serious educational course? And what part of the knowledge they have gained is actually applied today in everyday management practice? When working with consultants, regardless of the type of consultation, knowledge is directly embodied in practical activities, or, conversely, acquired in the process of solving specific problems (for more details, see below). Shevchuk D.A. Creation of own firm: Professional approach. - M.: GrossMedia: ROSBUH, 2007). In any case, the decision on the first part of the question - to invite or not to invite consultants - remains with the client. The service of obtaining financing from credit institutions is in demand among enterprises implementing investment projects, the cost of which significantly exceeds the cost of projects implemented earlier, as well as in the absence of their own experience in bank lending. The implementation of such projects may include a work plan to increase the investment attractiveness of the enterprise as a Borrower. A team of consultants, which includes diversified highly qualified specialists (financiers, lawyers, economists, marketers, etc.), can provide the client with a full range of services - from preparing a business plan to finding and identifying a financial source (bank, investment company, investment fund, private investors, etc.) in order to assist enterprises and organizations - potential borrowers - in preparing documents for obtaining a loan, choosing forms and methods of lending, searching for investors and arranging financing. The consulting services and products offered by the Credit Agency (credit broker) are as close as possible to the requirements of investors - banks and other credit institutions and investment companies. Actively cooperating with various banks, The credit agency offers clients the organization of financing - search and selection of banks for lending to investment projects, financing the development of production, its reorganization and technical re-equipment, as well as obtaining loans to replenish working capital (for more details, see Shevchuk D.A. Loans to individuals. - M .: AST: Astrel, 2008 ). As part of the Credit consulting service, we offer support for the procedure for obtaining a loan, namely: - general familiarization with the lending market - providing information and choosing the most optimal loan program and bank - assistance in the collection and execution of a package of documents for obtaining a loan - coordination of a package of documents with the bank and submission of an application for a loan By applying for a loan consultation, you will not only save precious time spent searching for a suitable program, but also receive the most reliable information about the bank and the conditions for obtaining a loan, which often differs significantly from that provided by the bank for advertising purposes. Directions: - mortgage credit lending - small business lending - consumer credit (for personal needs): targeted and non-targeted - car loans Full support of the procedure for obtaining a loan, according to research by INTERFINANCE (www.denisshevchuk.narod.ru), is usually paid in the amount of 1000 USD. (or 500 c.u. + 2-5%), of which 400-500 c.u. paid at the time of commencement of work to support the loan, and the other 500 c.u. (or interest) - only with a positive decision of the bank. As practice shows, often a loan is not provided not because customers are not creditworthy or hide something, but because the client is unable to correctly understand what the bank requires of him (for more details, see Shevchuk D.A. Loans to individuals. - M.: AST: Astrel, 2008). The essence of the credit consulting service is an independent objective assessment of the existing loan offers on the market in order to offer the most advantageous loan plan from the point of view of the borrower. Indeed, dozens of banks now offer loans. Their programs differ in terms, interest rates, terms and other parameters (for more details, see Shevchuk D.A. An apartment on credit without problems. - M .: AST: Astrel, 2008). You can do your own market research, spending a lot of time, or you can call loan consultants (or loan brokers) and they will solve your problems. Investment, banking, financial and credit consulting may include: · Express analysis of the enterprise and the nature of the project. · Search for a potential investor or lender. · Compilation of the required package of documents for a specific investor or lender (or a list of required documents). · Accompanying the consideration of a credit (investment) application. Specialists will help you decide on the most convenient form of financing your business, choose a reliable partner (for more details, see Shevchuk D.A. How to draw up a business plan: the first step to your business. - M .: AST: Astrel, 2008). There is a market demand for the provision of professional brokerage services to support credit transactions. Realtors do not cope with this duty, not all banks are able to work with clients, and the niche that has arisen is filled by those who have the time and desire for this. According to experts, out of about 10 people who decide to draw up documents for obtaining a mortgage loan on their own, only 2 go to the transaction. Now help to potential borrowers is offered by mortgage brokers - organizations that provide professional services in selecting the best banking lending program for a client. According to experts, mortgage brokerage is a new and very promising activity for our country, combining the specialties of a realtor and a financier (for more details, see Shevchuk D.A. An apartment on credit without problems. - M .: AST: Astrel, 2008). According to market participants, the first to enter mortgage brokerage were realtors who founded subdivisions in their firms dealing with consulting services in the field of mortgage lending, and only then specialists in the field of finance and law paid attention to the promising service. Until now, brokers have not conducted an active advertising campaign. Information about their services is distributed through customers or small advertisements in newspapers and the Internet. Every year the number of banks that are ready to provide loans to individuals is increasing. Volume consumer lending only increases from year to year. Currently, the most popular are loans issued for the purchase of household appliances, cars. Also, many banks offer express loans that do not involve the intended use of funds (for more details, see Shevchuk D.A. Loans to individuals. - M .: AST: Astrel, 2008). All major banking loan products are already known and invented. The question is in the range of products that can be offered by one bank. Banks set themselves the task of offering customers the fullest possible range of credit products. Competition in the lending market is very high, and only banks that have achieved the greatest technological effectiveness of transactions at the lowest cost can win. Private lending today is the most promising direction in terms of development of the banking business in Russia. The market for large corporate clients is very saturated, and the provision of loans to small businesses for financial institutions is not yet very attractive - in particular, due to the lack of transparency of small businesses and legislative barriers. Effective work with individuals requires a wide network, modern banking technologies, significant marketing support, a wide product line, and qualified personnel. The prospect of working with individuals is also confirmed by the interest of foreign investors, who pay attention primarily to the retail market. However, as the market grows consumer loans the percentage of arrears also increases. As long as the loan portfolio is growing rapidly, bad debts may represent a small proportion of loans granted. But the rapid growth will not be endless, and at some point the delay may become a serious problem for banks actively developing retail. This is especially true for those financial institutions that issue unsecured express loans at retail outlets. This is the most profitable type of banking business with a yield of up to 70% per annum in rubles, however, the risks here are very high. The decision to grant a loan is made using a scoring system in a few minutes, during which it is impossible to conduct a qualitative assessment of the solvency of a potential borrower. Express loans are a tidbit for scammers. THE ENTIRE civilized world has long been living in debt. people enjoy consumer loans. The debt of the average American family, for example, is up to 80% of its annual income. Today in Russia there are already people who take a loan, knowing full well that they will not be able to repay it. And in this sense, even the institution of credit histories will not help - a person may not have any debts, but this does not guarantee that he will be able to repay this loan. At the same time, a citizen must also receive protection from the lender: the borrower may fall ill or, for reasons beyond his control, fall into other difficult circumstances, in which case the bank must provide for special conditions for repaying the loan, because bankruptcy is an effective tool to protect the borrower all over the world . In addition, in the United States, for example, there is a regulation governing relations between a borrower and a lender, which provides for the responsibility of the bank - a financial institution cannot, roughly speaking, distribute loans right and left to everyone. The hour is near when the market consumer lending there will be fierce competition. The composition of the main players can change significantly, as well as their interest rates (for more details, see Shevchuk D.A. Loans to individuals. - M .: AST: Astrel, 2008). In the opinion of the company's specialists, the aggravation of competition forces banks to apply a more flexible policy. most individuals would like to take out a loan for repairs. The next most popular are loans for the purchase of a used car, furniture, computer, household appliances and other household items. Slightly less in demand are loans to pay for tuition and vacation trips. Most individuals would like to take out a loan to carry out repairs. The next most popular are loans for the purchase of a used car, furniture, computer, household appliances and other household items. Slightly less in demand are loans to pay for tuition and vacation trips. Research and survey data show that Russians are increasingly willing to spend, while actively using loans for urgent needs. Yes, and all the statistical layouts confirm this. So, perhaps in the near future the American model of "life on credit" will become just as popular in Russia. Customer credit is undergoing a period of steady growth. More and more banks are joining. emergency loans in the West have a long history. Its mechanisms in European and American legislation are spelled out so clearly and in detail that the Russian market, which is not even 15 years old, has no choice but to take an example from them. While Russians are discovering America emergency loans, in real America, they have gained a strong position since the second half of the twentieth century. It's in the States emergency loans received the most development: experts consider the American market the most capacious and flexible - despite the fact that initially the growth rate of consumer lending in the industrialized countries of Europe was ahead of the dynamics of the US market. For example, in Germany in the 70s, there was a five-fold increase in emergency lending, which by the early 2000s had reached $190 billion. In the same period, it tripled in the United States, and by the beginning of the 90s it had crossed the mark of 600 billion dollars. Everyone is Equal Before Credit The official history of emergency lending in America dates back to 1968, when the Consumer Credit Act was passed there. In particular, it establishes fair lending rules, rate caps, transfer and installment sale rules, contract clauses. The law does not ignore the means of judicial protection of the creditor, as well as cases in which the court has the right to recover the balance of the debt for the sale of security or to seize the debtor's property. The law also regulates credit transactions relating to the sale of real estate, goods and services by persons regularly involved in sales on credit. There is no need to worry about the rights of the American consumer: he, like armor, is protected from all possible sides. In addition to the Consumer Credit Law, there is The Uniform Consumer Credit Code. Its task is to protect consumers who receive loans to finance purchases, to ensure the correct, adequate provision of lending services, and to regulate the lending industry as a whole. Finally, there is the US Consumer Protection Act, part of which is also devoted to consumer loans. It obliges lenders to fully inform the consumer about the conditions of lending and prohibits any discrimination in lending. The law also protects consumers from abuse by loan sharks and limits rewards. In addition, it regulates the activities of companies issuing credit cards and providing credit histories, and also establishes the National Consumer Finance Commission, which is competent to conduct investigations in the field of consumer credit. Dealing with a problem called "Consumer credit"(hereinafter PC) should separate this form lending to the population from others, very similar to her, but carrying some other "semantic load" and social function. Credit for urgent needs A loan is given to a citizen not for something specific, but just because he needs it. Loan to buy a car. This is a very resource-intensive form of lending for any Bank. Since it requires the diversion of significant amounts for a relatively long period (up to 3 years). The loan is fully secured by a car insured in favor of the Bank, and in case of any problems, the Bank will easily compensate for its losses. A loan to buy an apartment (house) or a mortgage loan. The most resource-intensive (up to 100 or more thousand US dollars per borrower), the longest (up to 10 years). However, this loan is also almost completely secured by collateral, because here, as in the case of cars, the Bank provides no more than 70% of the cost of housing. It is easy to see that the leaders in the resource-intensive long-term lending market are foreign banks. This is not surprising, since these types of loans are very developed in the West, they have extensive experience and are able to attract cheap "long" resources from parent banks. At the same time, it should be noted that the 10-15% per annum offered by them in Russia is a blue dream for Western markets. Actually, a PC or "credit for an iron" is a much simpler thing. Its essence is as follows. You do not ask your neighbors, relatives or acquaintances for the missing 200-1000 dollars for a refrigerator, washing machine or TV. In almost every large store selling household appliances, you can find a table at which an employee of one or another Bank sits. You fill out a questionnaire, wait 30-40 minutes and - your desired washing machine. Further, for the next 3-6 months, your duties will include the need to visit the Bank's office to make a monthly payment. There is another option - you fill out a questionnaire, bring a certificate from your place of work on salary or another document confirming the presence of some kind of permanent income, then wait 2-3 days - and the washing machine is yours again, but, as practice shows, for lower interest on the loan than in the first version. Why? Yes, because the Bank managed to check the information about you and the documents that were submitted during these days. The higher the confidence in the borrower, the lower the interest on the loan. Look at the interest offered by Sberbank or "daughters" of foreign banks, and then take a list of documents that they require and information that they are interested in - the connection, as they say, is obvious. What are the key points when deciding whether to take a loan, and if so, where? - How interest is calculated. A beautiful figure of an increase in the cost of a thing by only 5-10% easily turns into 20-40% (the loan is for 3 months!), And upon closer examination, into 26-52% (the loan is taken at 70% of the cost, and 30 - you paid themselves). - How much interest is charged? on the entire loan or with a reduction in debt, interest is charged only on the remaining part. The difference can be quite significant. - Possibility of early repayment. This is a fundamental question. Often, even if you repay the loan the next day, the amount of interest will need to be paid in full, as if you had used the loan for the entire term. - In what monetary units do you get a loan - rubles or foreign currency. It is very difficult to give advice here. It all depends on the form of your income and the situation with the exchange rate. And remember, if your income is fixed ruble income (for example, wages), you will also incur expenses for converting rubles into the loan currency. Question 161: Sales strategy A sales strategy is the lifeblood of any business. Without a clear understanding of to whom, why and how the company sells its products (provides services), you should not count on positive results in the long term. The CEO needs to independently determine the sales strategy and bring it to each employee of the company. The general provisions of the strategy (in what price segment the company operates, who are its customers, what are the advantages of its products compared to competitors' products, where the company intends to move) should be known to all personnel - from first deputies to production workers (see Why the strategy is for workers). Employees who work with clients in one way or another (sales managers, service department, and even receptionists or security guards if they meet buyers) should know the sales strategy thoroughly. Regardless of what the company is engaged in (manufacturing of televisions, paints, selling hangers), you, as a General Manager, need to answer the following questions in order to form a sales strategy: - what customer problems does your company solve (what needs does your product satisfy); - In what price segment does your company operate? What customer problems does your company solve? It is a fundamental question to satisfy what needs of customers the company's activities are aimed at. It needs to be looked at from two perspectives: - whose problems the company solves; What problems does it solve for the client? If your goal is to maximize profits in the near future, and then either invest the capital received in other activities or leave the business, then you need to attract as many customers as possible (active short-term advertising campaign) and extract maximum income from the first contact with the consumer. If the task is to develop the company and maximize profits in the medium and long term, you need to put the solution of your customers' problems in the first place. That is, to understand what you are able to do for the client so that he can say, for example: "Now I will not have problems with communication", or "I know where I can always buy quality shoes", or "I will not be deceived here ". After all, the buyer always feels that they want to make money on it or try to solve his problems. Suppose, if I come to a car service and see that they come up with a lot of faults, then I understand that they just want to cash in on me. In that case, I will never go back there. To retain a client, you need to know exactly why he needs your company's products or services (saves time, quenches thirst, gives new knowledge, relieves hassle, etc.). And not in words, but in deeds to solve problems. To do this, your sales managers should not lecture about the product and not praise it to the buyer, but first of all ask questions and find out for what purpose the client turned to your company. Suppose your company sells furniture. The manager must understand whether the client knows what he needs, or came to consult; he intends to change the entire suite or simply chooses a bed; he needs a large bed or a medium one, orthopedic or simpler and cheaper, with a place for linen or a regular one. When it becomes clear what exactly the client needs, then it is worth offering options. To overwhelm him with a mass of proposals, especially at the first stage of communication, is not a solution to problems, but their aggravation. And they always try to avoid such situations. Why a strategy for workers The more you communicate with employees, including production staff, the more you talk about the company's goals and share your vision of the final result, the greater the return. It is important for people to know what the purpose of their work is, to understand why they spend most of their lives. If this understanding is not there, then you should not expect a responsible attitude to work. CEO speaking hotel director We want to reach people with different needs, so each of our hotels has its own characteristics. "Gloria" is designed for the business audience - those who come on a business trip and want to have a rest after sorting out their affairs. This is a quiet little hotel in the city center. We know each of our guests by face and by name and patronymic. After all, we, unlike large hotels, can afford such an approach and we rely on it. Not having a large advertising budget, we do our best to keep returning to us (70% of our clients are regular). We take into account what our guests pay attention to, what they ask for, what they are dissatisfied with, what they lack. Employees do not interrogate clients on purpose, but each request (a call, an appeal to the reception) is necessarily recorded. And if the guest arrives for the second time, all his conditions remain in force. It is important that this approach is shared by our staff. For example, one of our clients loves milk mushrooms very much, and every time on the eve of his arrival, the waiter himself announces that he is going to the market to buy them: "So that his favorite dish is ready for the guest's arrival." This does not require special costs, but the effect is significant. We also take into account corporate specifics. We try to always keep in mind the individual characteristics of the guests. For example, one of our guests prefers very hot (only boiled) tea and drinks a lot of it - having learned about this, we brought a kettle to the room. But, taking into account the wishes of customers, the staff of our hotel tries not to be intrusive and not dictate any rules, but only to solve the questions that a particular guest has. The main competitive advantage is an individual approach to each client. In what price segment does your company operate? The answer to the question about the price segment determines both the positioning of the company in the market, the selection of personnel for departments working with clients, and the setting of adequate tasks for your team (primarily for the sales department). After all, it is impossible to build sales in different price categories in the same way. I would single out three main price segments: - low price; - mid-price; - premium class. Very often, sales executives reduce all problems to the price of the product, arguing that high prices scare away customers. But this is one of the biggest misconceptions in the sales approach. The question of price with a competent organization of customer service goes by the wayside, as there can be many reasons why people buy something. For example, I come to a restaurant, pay 600 rubles, and I feel sorry that I paid them. However, in another restaurant I spend five thousand and do not regret it. In the first case, my need was not satisfied by 600 rubles, and in the second, they were satisfied by at least five thousand, and I am ready to part with a rather large amount, because I understand that it is worth it. Thus, all the complaints of your employees about the high price have no basis. This is tantamount to saying that everyone should ride the Oka because it is the cheapest. And here another question arises: what do we sell - "Oka", "Mercedes" or "Bentley", that is, in what price segment does your company operate? Reasons for buying - Personal experience of using the product (product or service). - Knowledge by the consumer of the product (advice from friends, advertising, etc.). - Natural need (hunger, security, etc.). - Fashion, novelty, the search for something unusual. - Pressure of groups of people (the need to adapt to the environment). - Considerations of prestige. - Relieve stress. Sales Pyramid  *Luxuries (English) - luxury items Low price segment The low-price segment is characterized by the largest number of goods sold and the lowest price of each. The main competitive advantage of the companies in this segment is the price. Their successful activity is based mainly on competent work with suppliers. The main task is to reduce costs as much as possible. Therefore, the organization of a business requires well-defined business processes, extremely precise job descriptions. This is a kind of conveyor where you control processes more than people. By reducing costs, you reduce the cost of staff salaries. Therefore, you need to understand that the level of employees will be appropriate, staff turnover will be high, theft and other violations are possible. Therefore, special attention must be paid to labor discipline. The costs should include the constant search for new employees. In this segment, where price is the determining factor for survival, it is important to have a strong financial department. CEO speaking director of the company "IT" Our company operates in the low price segment. We manufacture plastic products and sell them through retail stores. We do not have any advertising, and, in my opinion, it is completely unnecessary. We work for people who understand that advertising only increases the cost of products without affecting the quality in any way. Our consumers are sensible people who do not want to overpay for bright commercials on television. Of course, a product that you have heard about a million times in the media, that you have seen on billboards, has its advantages over the so-called no name. But if there are identical products with different labels on the shelf of the same store, then from my own experience I can say that 80% of consumers will choose the cheaper one. First - at least in order to try. And at this moment, if the quality is at the level, the consumer is ours. And it is he who will make advertising for our product, which, I want to note, works a hundred times more effective than all other advertising moves. Therefore, our main task is to create an inexpensive, high-quality product and enter retail chains with it. That is, stand on the shelves next to well-known brands and defeat them with the help of a low price. The company "I-t" specializes in the production of plastic products for domestic needs. It has been on the market since 2004. The staff of the company - more than 50 people. The main sales channels for products are retail stores and wholesale companies. Premium class The "premium" segment is characterized by a small number of goods sold at a high price. The main competitive advantage here is the image. The main task for companies in this segment is to find an exclusive quality product (create exclusive services). It is also necessary that the company's office be located in a prestigious area; it is necessary to arrange an expensive place of sale (salon, shop), to select highly qualified (according to the direction of activity) personnel. Employees in the premium segment need to be given special attention, because when contacting your company, customers want to communicate with people of their level. This does not mean that millionaires should sell in a millionaire store. But professionals working with clients need to use the goods they sell themselves. They should personally feel the benefits of the product (service): not by reading the brochure and not listening to the lectures of your marketer, but by trying the products. For example, your salesperson should lie down in the jacuzzi himself and realize that in addition to a special shelf for the left hand, a shelf for the right would also be useful. At the same time, you need to understand that employees must be of the appropriate level, not from the lower social strata. Work with them must be built in the same way as with clients: an individual approach to everyone, interest in their opinions and proposals, treatment as equals among equals, high appreciation of their activities (both material and non-material). Mid-price segment The mid-price segment is the most difficult in terms of customer service technology. The main competitive advantage here will be a combination of service, product quality, its price and the company's image. In fact, for each of these parameters you will have to compete with someone. So, in the market of cell phones (middle price category), even for a first-class service, you will not be paid six thousand rubles, if in another place you can buy the same thing for five. But if your competitor has the same mini-PBX for $20, but this price includes installation and configuration, and, in addition, the client will have a wide choice of phone models, then you are with a price of $18 You may well lose. Competitiveness in the middle price segment, as well as in the low one, is ensured by well-defined business processes, in which your business works like a machine. But the personnel department (personnel service) must humanize this machine: it is necessary to develop loyalty programs for employees (material, non-material incentives, taking into account the opinion of each employee, etc.) [A selection of articles and materials published in the General Director magazine devoted to the problems of motivation , you will find in the thematic collection "Staff Motivation"]. If your company operates in the middle price segment, you need a strong marketing department, constantly conducting market research, looking for fresh ideas. It is worth building a system in such a way that each employee is involved in the search for new ideas (in service, in forming product packages, in creating an image). This is what will give you the opportunity to stay ahead of your competitors for a certain period of time. Customer service professionals need to be carefully trained or selected. But it is important to understand that in the middle price segment you cannot rely only on highly qualified specialists (cost growth). Therefore, the stake must be made on the cultivation of employees. Your main task is to reduce staff turnover as much as possible. It should be remembered that the company's successful activity in this segment is based on working not so much with suppliers as with personnel, on creating a team and retaining it. It is necessary to properly orient the employees. They must live in the interests of their clients (Dealing with Clients Resource Kit). If an employee is aimed only at pleasing his manager, and his salary, bonus, career depend on this, he will not be able to work effectively with clients. As a result, your company will suffer. CEO speaking General Director of the company "Mr" We work in the medium price segment, periodically applying dumping on the entire range in individual stores or on individual products throughout the network. This allows us to solve the problems of local competitive wars and maintain the image of stores with affordable prices. The main competitive advantage of our company is its strategic asset - retail space in extremely crowded places, accessible to most of the population of the Belgorod region. This is a real advantage, as store location is one of the key success factors in the consumer goods retail industry. In addition, this is a scarce resource (the number of attractive trading places is limited), which is important for successful competition. However, all this is useless if the company is not able to manage a chain of stores of this format. High-quality recruitment and selection of personnel, training, control and motivation systems - it is the excellence in management that allows our company to occupy a leading position in the Belgorod region in terms of consumer coverage. After all, a wide and stable assortment, high quality service, effective promotion, affordable price are mandatory conditions for any company wishing to work in our market, but these factors cannot be competitive advantages by themselves. They are easy to buy or copy. A trusted brand might be considered a competitive advantage, but this factor is completely useless if the company does not have adequate access to the target segment. LLC "Mr" unites 14 specialized stores "Mr", selling household chemicals, perfumes and cosmetics. Understanding what price segment you are in, you will be able to clearly prioritize and formulate tasks. Therefore, if you receive offers to change the price (as a rule, to reduce), you should be wary of such an adviser. After all, if you lower the price, then move from one category to another. Therefore, you need to change strategy and rebuild the business. Are you ready for this? CEO speaking General Director of the company "S-e m-i" The sales strategy, in my opinion, depends on the type of activity of the companies. Conventionally, this activity can be divided into two types: production and distribution. The distributor by and large does not care what he will sell. He either studies the demand and chooses a product that sells well, or without preliminary research he takes a large package of items from which something "shoots" and something does not. The task of the distributor is to respond to changes in the market and quickly adapt to it. The main competitive advantage is flexibility. On the contrary, it is difficult for a manufacturer to take into account market changes; it is much less mobile. Its task is to initially determine which product will be in demand in the long term, so that production capacities are maximally loaded. Unlike a distributor, a manufacturer must be a market legislator: find new niches, create value for the product, tell the consumer what he needs. I believe that this (rather than responding to market fluctuations) is the manufacturer's winning position. For example, we took the path of choosing a narrow niche with unsatisfied demand (mead production). The market for mead (hoppy honey) is now in its infancy, and we hope to take a worthy place in this segment. Question 162 Most clients know what they are looking for before they start researching. Moreover, they only want you to confirm their conclusions. Any researcher can tell you about the time they spent on objective (i.e. useless) analysis. Moreover, if you have enough brains to understand what they expect, you are guaranteed a long and fruitful cooperation. Often during a presentation or lecture, I give real examples from my practice, supported by facts and the necessary data. If someone asks me a question, I answer "That's one of the ten rules of market research." As you can guess, over time, both clients and students increasingly wanted to know what those rules were. In return, I promised to send them a copy one day. Well, in the end, promises must be kept. Here they are: 1. People can be dumb. And they also lie. A newspaperman once wrote that no one has yet gone broke because they underestimated the intelligence of the American people. Until I read this quote, I didn't know that Mr. Mencken was also a marketing researcher. We all know that people lie. In focus groups, I have participants write down their first reaction, whether they're watching ads or answering questions. Over time, I found that at least a third of them change their answers during discussions. During subsequent questioning, the respondents often accuse me of not correctly understanding the figures they wrote down. Or they claim they didn't understand the rating scale. Or they point out to me that it is "a woman's prerogative to change her point of view." 2. People's opinions are taken into account only if they coincide with the opinions of people "on the other side of the mirror." It's amazing how smart or dumb (cute or ugly) focus group participants appear to observers if they suddenly agree with what they are presented with. A positive reaction to something is the difference between a "good" and a "bad" participant. Very often, when I go to the observers during focus groups, they advise me on which participants to "focus on". "And everyone else (that is, those who do not say what the observers would like to hear) is not worth a damn." I often invite clients to listen to "live" interviews. After one of them, the client asked me why I wasn't recruiting "smarter customers" (I'm guessing they were probably busy surveying his "smarter competitors"). 3. Choosing a focus group venue has nothing to do with the product. A long time ago, I realized that focus groups are only held in cities where the client has relatives. Or college friends, or ex-partners. Or a "big weekend" is planned. In the end, it all comes down to who the client here knows. Or what's going on in town next or next weekend. One of my clients requested focus groups in New York because his son's school is located there. Another client likes Chicago in summer because it hosts the Lakefront Jazz Festival. 4. The larger the researcher's building, the higher the research price. Overhead costs lead to an increase in the price. Interviewers in most cases work at the same rates. Therefore, the difference in the cost of research should be somehow justified. For example, included in the rental price. Therefore, the consequence of this rule will sound like this: the more people the contractor hires, the more expensive the project. Last fall, I received an order from a client whose previous contractor was charging him 63 percent more. Of course, that company had not only its own building, but also an "international reputation" (their interviewers came from Canada itself). Warning: Don't underestimate the price too much, because customers may suspect that they are getting exactly what they paid. Although, on the other hand, as far as I know, no one has ever proved this axiom. To be honest, there are many ways to "justify" the high price. For example, simply mentioning the presence of a PhD in a sentence automatically adds 20 percent (usually these eggheads don't even look at the collected data, but are part of the "research team"). Also, research "on the coast" is always more expensive, be it quantitative or qualitative. I never understood why. 5. At the first meeting, always ask the client what results he expects. This will save you a lot of time and nerves in the future. Most clients know what they are looking for before they start researching. What's more, they want you to validate their findings before work even begins. Any researcher with more than one month of work behind him can tell you about the time he spent on objective (i.e. useless) analysis. Moreover, if you have enough brains to understand what they expect, you are guaranteed a long and fruitful cooperation. If not, you'll hear "We're not planning any research right now" over and over again. This lesson was not easy for me. A few years ago, I worked with a government company that was convinced of the need to build an out-of-state technology center. Unfortunately for me, the respondents thought it was the dumbest idea they had ever heard of. Accordingly, the results of the study were buried. Another example concerns a client entering the Kansas City market. They hired me to find out what the locals think of them. The answer was "nothing," which was what I said in my report. The answer was not original: "Focus groups are useless. It's just a few g...s talking about whatever comes to their mind." When talking about clients, always remember that "Research goals are set in stone, but the chisel is in the client's hands." A project always starts with a proposal that clearly defines the objectives. However, I never tire of wondering how goals can "evolve". I don't remember a single presentation where the client didn't ask, "Why didn't you find out about this?" or "Whose idea is this?" In fact, this leads me to amend the first Rule: "If you think that the respondents are dumb and liars, wait until you present the results to management." 6. The sample size is determined by the budget. Students always ask the question, "What is the best sample size?" They're asking the wrong question. Your first question when the phone rings should be, "How much money do you have?" Based on this figure, a proposal is being prepared. This figure determines how much you can earn. Customers always have more money than they say. Coverage less than expected? Somewhere there is a wad of cash. Sample too small for subgroup analysis? Do not worry. There will always be money in the wallet. Actually, you can safely spend twice as much as the amount declared by the client. Two months ago, I compiled a questionnaire for the members of one of the teams, including all the necessary questions. Unfortunately, this lengthened the 7-minute interview to 18 minutes. No problem. The money mysteriously emerged from the "that's all we can spend" budget. Non-profit organizations are especially famous for their ability to raise some more money. They, like proteins, always have a supply somewhere. Finally, a rule that is especially good when estimating the initial budget: always quote a low price. This works especially well with government contracts, which are often awarded to the "lowest-taker". Once you've got the job (and their favor) you can start "begging for more". 7. If you torture the numbers long enough, they will finally converge. I learned about this a year ago from a guy who has a PhD in statistics. Want to "prove" a statistically significant difference, for example, between those who saw an ad and those who didn't? Just lower your confidence level to 85, 80, or even 70 percent. I know of a research firm that does just that. They just don't mention it in the main text, but include the information in the appendix (a graveyard of various "little things"). One client, before starting work, personally instructed me to lower the confidence level, "so that there are more statistically significant differences between groups." He told me, "If we don't provide enough statistical differences, management may feel they haven't gotten their money's worth." Are the results not what you would like? Keep playing with numbers. There is no reason to be afraid of "unfriendly" numbers. The truly creative (or experienced) researcher will realize that there is always a subsample somewhere that needs to be "reanalyzed". No matter how many people or what they said in a focus group, there is always a way to flatten the unanimous opinion with the phrase "most, but not all." This also works in reverse. When participants bury the ad, the moderator points out that "some participants really liked the ad." 8. When presenting research results, always use the most buzzwords. This way, not only will you sound like you're "in the know", but the client will understand that their project is "cutting edge". And that he found himself a "partner" who "really understands his market." At the same time, all more or less experienced researchers know how important it is to use the "standard research vocabulary". They are aware of the need to use really complex words to describe really abstract concepts. After all, the more complex the word or the more abstract the concept, the less likely the audience is to ask about it. They don't want to look stupid. More importantly, the audience will not try to understand what you are talking about. They will simply understand that they are getting something worthwhile for their money, and calm down. After all, any not-quite-useless researcher can turn to the patron saint of all "researchers," Fred Astaire. They learned to tap dance. They have learned to broadcast the message "I have no idea what you're talking about" by stating that "This is really very important. I'll have to collect some more data." 9. The better the results, the smarter you are. This is for those who missed the fifth Rule. In marketing research, your talent depends only on how positive information you provide. Delivering "good" results brings joy to the conference room. This gives your client an opportunity to show his or her boss how smart she was in choosing you for this project. This brings us to the sub-rule "The better the results, the more they'll like you." Or even "The better the results, the more likely the client will give you a new job." Several of my colleagues are "fixed" with advertising agencies because they always, quite by accident, manage to achieve results that show how the campaign (and ad agency) is fully aligned with the firm's current strategy. Another sub-rule: "A really good researcher confirms what the client already knows." Many years ago, I conducted focus groups for a consumer goods manufacturer. Eight groups in four days ("country trip"). When I presented the results to the client, he praised me for being "as perceptive" and "as smart" as he was. A good researcher must have the talent to state the obvious. Telling a client what he or she already knows proves that you understand their business. And this, in turn, greatly increases the credibility of you. 10. One last thing: always recommend doing another "one" study. A really good explorer is always on the lookout for new research (We need to eat too. Or pay for a car. Or pay rent for this hefty building). What other study could show your genius? However, seasoned researchers know that stupidly recommending further research is a sign of lack of professionalism. Instead, the researcher will soften the wording, stating with sincere enthusiasm, "If I were running this business, I would do the following." Or "I know your budget is tight right now, but to get the maximum return on your investment, you should do this." This is called "upselling". Fast food chains do this all the time. One independent researcher once shared with me the "secret of consulting": "To stay in business, you only need three clients. And then finish them to the very end." Rules to live by These are the rules I live by. Some may seem like a joke, but not all. All the stories I have given are absolutely true. My MBA students helped me make this list. This is because, unlike veterans, they are not yet so close to the industry, and yet able to notice the obvious. And the fact that I used their observations and suggestions is just that I followed the First Rule of Marketing: "If it's worth anything, it's worth stealing." Question 163 As you know, almost everything can act as a commodity: from an innovative invention to food, from valuable information to a piece of art. But, whatever the product, it always goes through a certain life cycle. Just like any organism, the life of a product begins at birth. This is followed by "entry into the people" (bringing to the market), then a period of active growth and maturity, after which the saturation phase inevitably begins. And then the recession phase, which can easily end in "death" - that is, irreversible disappearance from the market. Naturally, each company - "parent" seeks to prolong the active part of the life of its "brainchild", and therefore, the question arises: how to delay the approach of the saturation phase? Or, if it has already arrived, how to revive the product and return the buyer's interest in it? The duration of the life cycle as a whole and its individual phases depends both on the product itself and on the specific market. It is believed that commodities have a longer life cycle, finished products - a shorter one. In addition, the life cycle of the same product in different markets may be different. There are several ways to extend the "life of a product", the effectiveness of each of which depends on a number of factors that somehow affect a particular product. Product modification/improvement You don't need to "reinvent the wheel", you just need to add a new part or function to it. At the same time, the innovation must be competitive, and better - unique in the market of similar products. New design A change in design is not just a superficial change in a product, as it might seem at first glance. When the consumer is fed up with high performance (and in most cases the leading companies keep pace with each other in the speed of introducing new technologies), he begins to pay closer attention to the appearance of the product before making his choice. Let's remember the range of mobile phones. Naturally, they differ in technical and functional characteristics, however, today design is of great importance. Advertising of the latest series of mobile phones largely exploits the attractive appearance of mini phones. It is the design, and not the capabilities of the phone itself, analogues of which can be found in other brands, that distinguish it from other manufacturers. New packaging The new packaging with the same content is a great opportunity to remember the quality and, at the same time, keep up with the progress. Notorious dragees in the classic package are a cylindrical pack and a rounded candy, Ms in the new package is a dragee in the form of a cube, blue (which was not previously available in any Ms variety), and the pack itself is made in the form of a box with a "long-playing" lid. The same with the new Ot. Coming up with a completely new type of chewing gum is perhaps impossible, while changing a pack is a simple matter. Support for large-scale action It may well return the lost interest in the brand and sponsorship of any interesting mass action. Organization of your own event Organizing your own event is a great way to remind yourself and your abilities. Extreme situations Oddly enough, extreme situations can also be useful for extending the life of a particular product / service. These situations include shortages, economic crises, food shortages, environmental problems... New service A new service can be a significant support for an existing service package. Let's say a restaurant business introduces a so-called happy hour. It is usually done 1-2 times a week. A visitor within a certain time (2-3 hours) can take two mugs of beer for one price, or the restaurant will offer drinks corresponding to the meal for free for certain dishes. This new service will certainly attract more visitors. Another example is a new version of the service. New slogan / New commercial Also an option to remind yourself. Any, even the most successful slogans and commercials eventually "get bored" and begin to cause irritation, so they need to be changed even for those companies whose products have not yet entered the recession phase. Launch of a new advertising campaign This is an extended version of the previous paragraph, when not just the slogan or video is changed, but the entire advertising campaign as a whole is transferred to another advertising agency or restarted. Release of a new product under the same brand This is a really good way to approach the question of consumer tastes more carefully and expand the range of your products. Price policy regulation Regulation of pricing policy can be carried out both in the direction of price reduction and in the direction of increase. Accordingly, by setting certain prices, the company "masters new frontiers", expanding its target audience. Restaurant chains regularly change their pricing policy: either by releasing new varieties of sandwiches at a price acceptable to all segments of the population, or by reducing prices for existing products. Numerous actions are also indicative. Author: Shevchuk D.A.
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