Efficiency of development of advertising
Table of
contents
Introduction
1. Theoretical aspects of efficiency
of development of advertising activity
1.1 The place and the role of
advertising activity in marketing system
1.2 Development of advertising
activity and its value for manufacturers and consumers
1.3 The economic indicators
characterizing importance of advertising activity
2. Research of the advertising
campaign of the new goods in open company nataly
2.1 The program of investment
maintenance of the advertising campaign
2.2 The estimation and the analysis
of indicators of efficiency of the advertising campaign
3. Ways of increase of efficiency of
advertising activity to open company nataly
3.1 Methods of rational use of
possibilities of advertising agencies
3.2 Methods of increase of efficiency
of advertising activity
3.3 Use of methods of optimization in
advertising activity
The conclusion
The bibliographic list
Introduction
Now the economy of Russia is in a transition state from
planned system to the market. And if earlier the enterprises had not to reflect
especially on production sale, the state now in the conditions of the market
each enterprise at own risk independently solves was engaged in it what exactly
it will make and how to market, what will be thus used means. As in present
conditions any businessman can make that considers it necessary also possible
the number of manufacturers of similar production becomes very big. And
everyone them them to aspire to win the market. It also induces the
organisations to undertake the various actions promoting realisation of
production. To these actions carry improvement of quality of production and
efficiency of advertising activity. Advertising is a significant part of
marketing communications and serves as the tool of creation of external
competitive advantage. It is impossible to present work of the modern
enterprise without advertising activity. The company should declare the
existence in the market, about the goods, involve the potential buyer and
create an image of the reliable partner. The control system base the modern
enterprise is the marketing transforming the purposes of firm in strategy of
its behaviour in the market. A visual embodiment in direct continuation of
marketing strategy? It also is advertising activity of the enterprise which is
turned directly on the consumer and is a basis of a complex of marketing
communications. Thus advertising activity, as well as any another, should
develop continuously within the limits of strategic planning of the enterprise.
As practice shows, frequently planning of advertising activity of the
enterprise is conducted without marketing strategy, in a separation from
marketing activity of the enterprise. It leads to that publicity expenses
increase, and its efficiency decreases. Considering all aforesaid, it is
obvious, what a diploma theme? Efficiency of development of advertising
activity? It is rather actual. Besides, in the course of performance of degree
work recommendations which allow to raise essentially efficiency of advertising
activity in modern conditions of managing have been developed. As a whole the
advertising efficiency estimation allows to receive the information on
expediency of advertising and productivity of its separate means, to define
conditions of optimum influence of advertising on potential buyers, to make the
decision on change of advertising strategy, flexibly to react to actions of
competitors. Especially sharply there is an advertising question at release of
the new goods. After all there is a danger that the product will not be
accepted by the market. Therefore it is very important in advance even prior to
the beginning of manufacture process to find out, whether the market requires a
similar product. And later, during an advertising campaign to stimulate sale of
production by influence on potential buyers, showing utility of the goods, its
best characteristics. In the given work the advertising campaign on advancement
of the new goods which is for today is developed faster the goods of industrial
appointment, than consumer goods. Owing to what, the emphasis at advertising of
these goods is made on the businessmen who are engaged in business (mainly
heads). It causes the advertising campaign maintenance (from the channel of
placing to the maintenance of the advertising message). Object of researches is
the industrial enterprise of Open Company Nataly, engaged in manufacturing of
an aluminium profile and products. A subject of researches? Advertising
activity of the enterprise. The purpose of degree work is research of an
advertising campaign of the new goods in Open Company Nataly and definition of
ways of increase of efficiency of advertising activity for the enterprise as a
whole. The primary goals of degree work are:
1) research of theoretical aspects of efficiency of
development of advertising activity; ordering of a theoretical material
according to efficiency of the advertising activity, available in the
scientific literature;
2) a substantiation of an advertising campaign of the new
goods in Open Company Nataly, including: planning, investment maintenance and
an estimation quantitative and quality indicators of efficiency of an
advertising campaign;
3) definition of ways of increase of efficiency of
advertising activity in Open Company Nataly.
Structurally work is presented by three heads. In chapter 1
of degree work the theoretical material on research of efficiency of
development of advertising activity is presented and systematised. Here the place
and a role of advertising activity in marketing system, development of
advertising activity and its value for manufacturers and consumers are
considered. And also the economic indicators, characterising the important
advertising activity are resulted. In the second chapter of work research of an
advertising campaign of the new goods is carried out Open Company Nataly in
which its planning and a substantiation of investment maintenance is carried
out. Here the estimation quantitative and quality indicators of efficiency of
an advertising campaign is made. In the final, third chapter of work ways of
increase of efficiency of advertising activity to Open Company are defined
Nataly.
In particular methods of rational use of possibilities of
advertising agencies, methods of increase of efficiency of advertising activity
are considered, and also optimisation methods in advertising activity are
considered.
1. Theoretical aspects of efficiency of development of
advertising activity
1.1 The place and the role of advertising activity in
marketing system
Last years the attention has increased in Russia to
advertising. This results from the fact that economic conditions have changed,
and absence of accurate planning has forced the enterprises to depart from
habitual stereotypes in business relations and to search for new
nonconventional ways of attraction of attention to itself, the activity from
outside consumers. Skilfully made advertising allows to overcome faster
barriers between the manufacturer and the consumer. The manufacturer is the
advertiser. And the consumer? This on whom the advertising message on purpose
is directed to induce it to make certain action in which the advertiser is
interested. The product does not become the goods while it will not sell. That
it has occurred, the consumer is necessary for interesting and preparing for
purchase fulfilment, to give it the sufficient information which would induce
it to action. This role is carried out by advertising. Besides, in the
conditions of saturation of the market by the goods advertising acts as
struggle means between competitors for the share of the market, as a way of
formation of demand, its developments, deduction or expansion of a share of the
market, maintenance of effective work of the enterprise [3, с.142]. There are
many definitions of the advertising which essence depends on the approach to
the given concept. Advertising? The paid form of representation and advancement
of the goods and services with accurately specified source of financing [3,
с.142]. Advertising? The impersonal forms of communications which are carried
out by means of paid means of distribution of the information, with accurately
specified source of financing [13, с.473]. Advertising? Attention attraction to
the goods, service of the concrete manufacturer, the dealer, the intermediary
and the distributor at their expense and under their mark of offers, appeals,
councils, recommendations to buy these goods or services [30, with.331]. In the
Federal law "About advertising" following definition of advertising
activity is made. Advertising? Specific area of a mass communication in the
conditions of a market competition between advertisers and various audiences
for the purpose of active influence on these audiences which should promote the
decision of certain marketing problems of the advertiser. It is a component of
marketing communications [17, с.22]. Hence, an advertising subject? It that is
advertised, and a vehicle for advertising - a channel of information on which
the advertising message reaches consumers. Thus the system of marketing
communications is the uniform complex uniting participants of advertising,
channels and the communications receptions, directed on an establishment and
maintenance of the mutual relations planned by the given organisation with
addressees within the limits of achievement of the marketing purposes (fig.1.1
see) [22, s.11-12]. Advertising is only a part of advancement of the goods at
which the firm can carry out contacts to the consumer through the trading
personnel (direct sales), popularisation or public relations, and also to use
various receptions of stimulation of sale. Advertising as a communication
medium allows to transfer the message to potential buyers direct contact with
which is not established. Therefore advertising is the cash form of
communications. But there is also a direct marketing which includes a direct
mail advertising (direct a mail), telemarketing, advertising of the direct
response (direct response) on TV, radio, in other mass-media. This kind of
marketing communications apply, when the advertising message is aimed at
generation of reciprocal action. Direct marketing has two basic advantages,
distinguishing it from usual mass advertising:
1) possibility of the individual reference to the concrete
consumer with offer specially prepared for it;
2) direct registration of its answer.
The role of advertising activity reveals in its functions
[18, с.33]:
1. Economic function. Advertising stimulates sale of the
goods and promotes growth of profit of the enterprise.
2. Information function. Advertising forms an information
field about the goods, services, their basic characteristics and features.
About the new goods consumers learn mainly from advertising messages.
3.communicative function. Advertising creates image of
commodity producers, forming activity of consumers to the certain goods
(services).
4. Supervising function. Advertising supervises processes of
creation of preferences of groups of consumers to the goods of regular
assortment.
5. Correcting function. Advertising changes stereotypes of
perception of these or those goods.
6. Demand management function. The volume of the advertising
information and a drawing of its giving can change demand in the necessary
direction. The essence of advertising consists in the following its basic
functions and properties: the impersonal form of communications; It is
characterised by uncertainty of target audience; creates an information field
about the goods and services and promotes observance of interests of the
advertiser. Advertising acts as one of levers in a complex of marketing
communications (fig.1.2) [18, с.44].
Advertising is a specific kind of communications. It is
possible to allocate three its basic distinctive features:
1) advertising always has a unilateral orientation: from the
seller to the buyer;
2) the result of advertising is not defined, as the feedback
from buyers practically is absent;
3) the result of advertising communications comes not at
once, and after certain time.
Thus, advertising has public character, promotes distribution
of the information on the goods and services, is depersonalized and
экспрессивна. It not only the tool, but also considerable sector of economy.
Economic function is reduced basically to informing of the consumer on the
goods or services, their popularisation, demand and goods turnover increase.
Advertising itself is business sphere where are occupied hundred thousand
professional experts, and brings in the big incomes to the manufacturers.
Advertising? A source of economic well-being of commercial mass media. It
provides with it financial support and mutually advantageous communications
with trade and economic and other spheres of a public life. Advertising
develops economy, influences increase of a standard of living of people and
promotes effectiveness of a market mechanism.
1.2 Development of advertising activity and its value
for manufacturers and consumers
The commodity market formed in Russia and services all
demands attraction and advertising use more persistently. Its roots leave in
deep olden time and are connected by that manufacturers always needed to inform
people on the goods sold by them, about spent fairs [25, с.4].
Except informative function, advertising acts and as the
communications form between sphere of the reference and manufacture sphere as
formation of new requirements of the buyers, stimulated advertising, gives a
new impulse to manufacture, defines directions and rates of its development.
That is, advertising will organise dialogue between manufacture and
consumption. It finds the expression in orientation of manufacture to the
market [25, с.11].
For 550 years advertising has passed a way of development
from the labour-consuming print advertising (publishing) limited to region,
before interactive global advertising. The first handbill has appeared in 1472,
printed by William Kokstonom and containing the information on prayer book
sale. The first weekly newspaper has started to be published in Strasbourg in
1609. In 1920 the first commercial radio station KDKA in Pittsburgh, the State
of Pennsylvania starts to work. Now advertising is applied not only in trade,
but also such spheres of a public life, as: the finance (for advertising of
services), a policy (persons, parties, the unions), religion (spiritual
culture), ecology (at occurrence of any natural and social situations), culture
(persons, events), a science (workings out, technologies, innovations),
services (medicine, tourism, etc).
From this it is possible to draw a conclusion that
advertising is the special form of communications. It realises the most general
problems, such, for example, how to inform on events and the facts of a public
life, to develop contacts between people, to operate dialogue process. Besides
it, advertising solves also the private problems: creates the set images,
convinces the consumer of necessity and possibilities to get these or those
goods, forms at it desire to buy the advertised goods, unostentatiously and
effectively, thereby turning to the tool of the organisation of sale of
production of the enterprises and the organisations.
As communication channels between the advertiser and
consumers various audiovisual means which represent advertising media act.
Advertising media classify on the basic and additional. All mass media and the
outdoor advertising concern the basic means.
Advertising in (newspaper) press possesses such advantages,
as: timeliness, frequent periodicity, the big coverage of the local market. She
allows to make changes to an advertising appeal operatively. At the same time
it has such lacks, as: short duration of existence, poor quality of
reproduction, a small audience? The secondary? Readers, thus advertising of one
firm is in a direct environment of advertising of competitors. Advertising on
TV unlike advertising in newspapers possesses high degree of attraction of
attention at the expense of a combination of the image, a sound, movement.
However it has high cost, fugacity of advertising contact, thus perception of
the information of an advertising appeal is imposed on irritation from an
advertising overabundance on TV. Radio is presented only by sound means,
advertising contact thus also is very short on time. However at the given
advertising medium coverage of an audience and smaller cost. Unlike advertising
in newspapers, advertising in magazines has sharp selectivity, prestigiousness,
better quality of reproduction and the big coverage of a secondary audience.
Also advertising here differs duration of existence. At the
same time at the advertising publication in magazine there can be a big rupture
in time between representation of materials in edition and its exit to the
public, i. e. effect? Advertising obsolescence?. The outdoor advertising has
powerful emotional influence, high frequency of repeated contacts, however at
its application there is no selectivity of an audience.
Exhibitions and fairs thus that demand heavy expenses and
preliminary preparation of stands, give the chance personal contacts to
consumers and partners, and also possibility to show the goods in operation.
But what advertising medium would not be chosen, it is
necessary to note following general negative aspects of advertising [18, с.
20]:
1) the advertising message is standard, nonflexible, limited
in time (advertising on radio, TV) and on the area (advertising in newspapers
and magazines);
2) in the advertising message there is no possibility to
emphasise individual requirements of the client;
3) the advertising message often is in an environment of
advertising of competitors;
4) all kinds of advertising demand the big investments;
5) advertising lays down heavy burden on consumers,
increasing the prices for the goods and services;
6) quotations from year to year increase by advertising
placing in a press that leads to reduction of the advertising areas and
advertising efficiency decrease;
7) advertising causes irritation that too often interrupts
translation of telecasts. Nevertheless, at all its lacks, advertising helps to
achieve decrease in time spent by trading workers on purchase and sale of the
goods, partially releases them from personal participation in advancement of
the advertised goods that also conducts to decrease in distribution costs. [19,
с.91].
Advertising promotes constant perfection of let out
production. It use as the competition tool. Without advertising there is no
possibility actively to influence the market, to fix the position on it [25,
с.12]. Advertising as the communication medium, gives the chance large
attendance attraction, thus to use the various mass media most suitable to the
chosen target segment of the market. Thus it is possible to supervise the
maintenance of advertising messages, its registration and exit time, to correct
or change the message depending on reaction of a target segment. Advertising
creates additional workplaces for managers, designers, artists, experts.
Besides, advertising positively influences a consumer society as a whole,
forming a powerful information field about the new goods and services.
There are the aspects explaining the negative relation to
advertising:
1.russia it is not generated the positive relation to
commercial activity. In consciousness of many people business Fraud.
2. Advertising is directed till now on the limited circle of
people? An average? The consumer is left indifferent by messages on computers,
cars, trips abroad. The reason - in low level of incomes.
3. An insufficient social orientation of advertisements at
which there is a problem of protection of environment, love, sports.
4. Many announcements are given a little reason, persuasive
and do not represent the facts.
5. Preview trailers are inexpressive, suffer bad aesthetic
taste, in them there are no elements of a corporate style of the enterprise.
Advertising is favourable to any enterprise And, many cases
when the manufacturer of advertising specially gave negative advertising by
means of which became known almost more than those who used only an advertising
positive side are known. Nevertheless, the author considers, what finally
similar advertising does not bring advantage to anybody?
To the manufacturer as on subconsciousness there is an
opinion on its firm as about something pushing away; to the consumer, owing to
that after similar advertising there is an unpleasant deposit. With assistance
of advertising the market becomes clearer and accessible to buyers with
different tastes and requirements, with different level of monetary incomes,
with unequal traditions concerning consumption. Carrying out contacts to the
consumer, the advertising message at first forms awareness at the person - the
consumer remembers mark. The positive relation to the goods is then formed,
that is the consumer remembers the goods as one of the best in the given
category.
The next portion of contacts moves it to the first purchase
[9, s. 20-22]. Unfortunately, not any advertising is perceived positively and
consequently not any goods are got. But advertising is necessary for the
consumer, as about existence of many goods we never would learn, if not
advertising activity of manufacturers. That is advertising is necessary to all:
and that who advertises the goods, wishing it to advance, and that who looks
advertising and thus receives the information on the goods.
Advertising not only the tool, but also considerable sector
of economy. Advertising itself is business sphere where are occupied hundred
thousand professional experts, and brings in the big incomes to the
manufacturers. Advertising? A source of economic well-being of commercial mass
media. It provides with it financial support and mutually advantageous
communications with trade and economic and other spheres of a public life.
Thus, advertising develops economy, influences increase of a standard of living
of people and promotes competition development.
1.3 The economic indicators characterizing importance
of advertising activity
Expenses on advertising? A powerful part of the budget of
foreign industrial firms. They show the tendency of development of advertising
activity. In the USA on advertising in mass media 5% from total expenses on
manufacture and realisation of the goods leave approximately. At manufacturers
of consumer goods this share still above: medicines? 20%; spirits, cosmetics?
13,8%; kitchen accessories? 12,8%; spirits? 11,9% and so on [30, с.332].
According to the Russian legislation expenses on advertising
include following positions [15, s.13-23]:? On working out, manufacturing and
distribution of ad publications;? On working out, manufacturing and
distribution of sketches, labels, samples of original and firm packages,
packings, acquisition, manufacturing and distribution of advertising souvenirs,
samples;? On publicity through mass media;? On illuminated signs;? Manufacturing
of stands, models, publicity boards, indexes;? Storage and экспедирование
advertising materials;? Participation in exhibitions, fairs, window dressing;?
On уценку the goods which in full or in part have lost the quality at
exhibiting in show-windows. Expenses join in the actual cost price of
production in full. The limiting sizes of expenses on advertising are estimated
according to the rates from goods turnover volume, including the value-added
tax. The account of expenses on advertising helps to estimate productivity of
advertising activity of the enterprise.
The general estimate of expenses for carrying out of
marketing researches of the market and carrying out of the advertising company
includes the following articles [1, с.86]:
cost of marketing researches;
cost of working out of a page in the Internet;
cost information not advertising article; - cost of placing
of advertising messages in mass media.
Absolutely precisely to define efficiency of separate
advertising media, in most cases it is not obviously possible to an advertising
campaign. There are two approaches to an estimation of efficiency of
advertising activity of the enterprise [28, с.41]: and #61607; quantitative
(economic efficiency) which shows degree of increase in sales volumes under the
influence of advertising; and #61607; qualitative (efficiency of psychological
influence) which allows to estimate degree of popularity, trust and adherence
of consumers to the goods or the company. In practice use both quantitative,
and qualitative approaches which allow to obtain the objective given
estimations of advertising activity of the enterprise. Experts define also some
kinds of an advertising efficiency, to be exact social, psychological and
economic efficiency [19, с.118].
1) Robinsona,
2)? Hiding places?, which consists that the present
advertisements from which marks, names of firms-manufacturers are withdrawn are
used; the interrogated should specify goods mark, having read the announcement
text.
Besides, there are also other methods of definition of
efficiency of advertisements. To them carry:
1) a method of supervision, experiment (is applied on the
published announcement the coupon which it is required to fill and send to the
specified address, or the coupon at which presentation at goods purchase, the
discount is given; by calculation of the sent or shown coupons it is defined,
сколькими the given announcement has been noticed by people),
2) an interrogation or questioning method. Economic
efficiency is better to judge by result which has been reached by means of
advertising.
The economic result is defined by a parity between profit on
the additional goods turnover received under the influence of advertising, and
expenses on it. In this case from carrying out of publicity the effect is
compared with expenses for its realisation.
Following variants are possible: - the effect from publicity
is equal to expenses for its carrying out; - the effect from publicity is more
than expenses; - the effect from publicity is less than expenses. However still
it is not enough received data for comparison of economic efficiency of
expenses for carrying out of various publicity. More precisely efficiency of
publicity expenses characterises its profitability. Profitability? This
relation of the received profit to expenses (in percentage).
In the present work we will consider that the concept of an
advertising efficiency comprises two components: communicative and economic
efficiency.communicative efficiency concerns quality indicators of an
estimation of efficiency of advertising activity, economic efficiency? To
quantity indicators. Such indicators concern quantity indicators, as an
advertising rating, a share of coverage of a potential audience also.
Efficiency of psychological influence of advertising means is
characterised by number of coverage of consumers, brightness and depth of the
impression, which these means leave in memory of the person, degree of
attraction of attention. For definition of degree of attraction of attention of
consumers to advertising the number of the people who have paid attention to
advertising is necessary and remembered it during the certain period to divide
into total number of people which have seen advertising during this period. In
mass media it is possible to estimate degree of effectiveness of the
publication of advertisements with some degree of convention, having divided
number of purchases during the defined period of time for total of visitors
during the defined period of time.
That it is correct to estimate efficiency of the created
advertising, it is necessary to spend accurately border between the
communication and commercial (trading) purposes of firm (fig.1.6). Advertising
as it was marked earlier, is aimed not only at achievement of competitive
advantages (a share of the market, profit, a sales volume), but on achievement
of certain results of communications with a target segment of the market.
In advertising practice distinguish four cores of an
indicator of a communicative advertising efficiency: recognizability;
запоминаемость; attractiveness; propaganda force. Recognizability of
advertising? It is criterion on which recognition symbols or external
attributes of the trade mark are estimated first of all? A trade mark, a logo,
the firm name. More highly on this parametre those recognition symbols, which
are estimated: demand less time for recognition; are perceived in wider spatial
range.
By this criterion are estimated not only recognition symbols,
but also the advertisement as a whole memory. One of the basic criteria both
communicative, and a trading advertising efficiency. At the heart of use of
this criterion the hypothesis formulated by classics of an advertising of R.
Rivsom and A. Polittsem and divided by a number of modern writers lies: the
person will choose that mark, which name and data about which it has better
remembered. This feature of human behaviour of A. Politts (1990) has formulated
in the form of a principle? Familiar mark?. He has established that expansion of
knowledge of mark increases trust to it and raises its rank of quality in
perception of consumers. Even the simple knowledge of the name of mark raises
trust to it in comparison with absolutely unfamiliar mark [22, с.72].
Attractiveness of advertising in many respects depends on
togas, how much successfully and in an original way creative decision embodied
in a real advertising product. But the creative decision, more truly, its
efficiency, it is the most difficult to estimate. The preference of mark seldom
is based only on a rationale. That mark which advertising causes emotional
participation will be seductive. Propaganda force? It is ability of advertising
to force consumer to wish to get the goods. As indicators of propaganda force
(on A. Polittsu) the following complex of properties can serve: The subjective
importance of a theme, plausibility of the basic statement about the goods,
uniqueness of the statement. Not in any advertising possessing propaganda
force, all three properties, but presence at least two are presented it is
necessary. Thus, it is possible to allocate four basic properties, defining
propaganda force of an advertising appeal (properties are presented in
decreasing order of the importance): the subjective importance; plausibility;
uniqueness; integrity.
The primary goal of an estimation of a communicative
advertising efficiency consists in indirectly to predict its influence on sale.
And though outright to judge a trading advertising efficiency by its
communicative efficiency it is difficult, nevertheless correlation between
these concepts exists. The modern advertising and marketing companies aspire to
find special formulas (using different combinations of indicators of
communicative influence) on which it would be possible to predict a trading
advertising efficiency.
The advertising efficiency is expressed in studying of degree
of acquaintance of target audience with the information on investigated firm
and its goods, and also what about them is known, what image of firm and the
goods was generated also what relation to them. To create representation about
the goods and firm, and furthermore to generate the good relation to them not
always easily. It demands time and certain strategy. Relations in the market?
It, first of all, human relations. Advertising allows to form the necessary
representations about investigated firm at a wide audience on which basis it is
easier to build relations. So, in conclusion of the head we will tell the
following.
Now the economy of Russia is in a transition state from
planned system to the market. And if earlier the industrial enterprises had not
to reflect on production sale, the state now in the conditions of the market
each enterprise at own risk independently solves was engaged in it what exactly
it will make and how to market, what will be thus used means. As in present
conditions any businessman can make that considers it necessary also possible
the number of manufacturers of similar production becomes very big. And
everyone them them to aspire to win the market. It also induces the
organisations to undertake the various actions promoting realisation of
production. To these actions carry improvement of quality of production and use
of various advertising receptions: appeal of packing, послепродажное service,
the offer of the accompanying goods and services.
It is necessary to approach to research and an estimation of
efficiency of advertising activity in a complex, thus to use both quantitative,
and quality indicators to estimate both trading, and a communicative
advertising efficiency. In conclusion of chapter 1 we will draw following
conclusions.1. Advertising? It is any paid form of impersonal representation
and stimulation of sale of ideas, the goods and services by the certain
sponsor.
2. Advertising is the most significant making system of
marketing communications which allows the enterprises to achieve long-term
competitive advantage, and also serves as the basic tool of positioning of the
enterprise in consciousness of a target segment of the market.
3. The essence of advertising consists in an ohm that it
hands over by means of mass media the information on consumer properties of the
goods for the purpose of creation of demand for it.
4. The advertising purpose consists in systematic influence
on mentality of the person to cause in it desire to get the known blessings.
5. Advertising became the integral and active part of a
communication complex of marketing. And its level of development defines
quality and efficiency advertising-information work the manufacturer and its
conformity to new requirements of the world market.
2. Research of the advertising campaign of the new
goods in open company nataly
2.1 The program of investment maintenance of the
advertising campaign
Let's consider development of advertising activity in Open
Company "Nataly". Assortment of production which is let out by Open
Company Nataly, constantly extends. After the formation the enterprise made
only an aluminium profile. This profile was a different configuration, that is
the assortment of made production was rather wide, nevertheless anything except
a profile in manufacture was not. Now only a building profile it is made over
two tens names. Later, having risen on feet, the enterprise has decided to
expand assortment of production, and, hence, and commodity markets. By this
time it let out an aluminium profile not only a different configuration, but
also with a different covering. The enterprise at will of the customer makes a
profile with the anodized covering, with a polymeric covering or without a
covering. Then heads have paid attention that the profile with a polymeric
covering can be used as eaves for curtains. Then the enterprise began to let
out eaves for curtains. The novelty has involved not only manufacturers of
building branch, but also wholesale buyers who got eaves for sale to retail
shops. Sometimes in firm the private persons addressed, wishing to get eaves
for a private use. Such expansion of assortment of production has helped firm to
enter the market of the private consumer. Though still the basic share in gain
volume occupied and wholesale consumers, owners of various manufactures occupy.
Then from this an aluminium profile began to collect the trading-exhibition
equipment. It did different colour at will of the customer and a different
configuration. Now Open Company Nataly. Makes for shops counters, racks,
show-windows. Considering that recently there is a set of small little shops
and shops where a variety of the goods demands use of the trading equipment of
a various configuration, the sizes and colours, Open Company "Nataly"
firm has been compelled to develop set of kinds of an aluminium profile for
manufacturing from it the necessary equipment. Further the enterprise
assortment has extended at the expense of manufacture of office partitions and
aluminium doors. It has allowed to win one more segment of the market? Small
private businessmen whom, beginning the enterprise activity, the offices aspire
to equip. For today firm Nataly. Makes the certificated aluminium profile for
trading, trading-exhibition and a refrigerating machinery; a building profile
for stained-glass windows, doors, office partitions, facing; profiles for
manufacturing protective, eaves for curtains and vertical jalousie; For
manufacturing of cases-compartments, a special purpose profile. Recently the
company has developed special designs of a profile for manufacturing of balcony
and sliding). Besides the company makes installation of the finished articles
executed at the enterprise. Aluminium windows became the next novelty. To prove
an advertising campaign on advancement of these goods, at first it is necessary
to describe the goods. It is necessary to distinguish the goods of industrial
appointment and consumer goods. The first are intended for industrial needs or
resale, and the second? For individual consumption. Between these kinds of the
goods there is a big difference. It is impossible to advertise the goods of
industrial appointment, as the goods of individual consumption. Business not
only in the name, but also in an essence, in that audience to which the
advertising action will be turned. If advertising for the goods of individual
consumption can be based on feelings, emotional perception in advertising of
the goods of industrial appointment of emotional factors can and not to be.
Certainly, there are goods which can be used both private consumers, and
manufacturers. Aluminium windows can be carried as to the goods of industrial
appointment, and the goods of individual consumption. But while for apartment
they the expensive. Therefore aluminium windows are used by a management of the
enterprises. Hence, it is necessary to emphasise in advertising one segment of
the market, on a commodity market of industrial appointment. The competition to
aluminium windows is made by plastic windows. Any production has certain merits
and demerits. The basic advantage of aluminium windows which draws attention of
buyers, their ecological compatibility is. On the contrary, the relation of
many production workers to plastic windows the negative. This results from the
fact that under the influence of the big differences of ambient temperatures of
plastic arts starts to evaporate harmful substances. At the same time, the
basic lack of aluminium windows in comparison with plastic is their price. It a
little above, as limits a circle of consumers. But this temporary phenomenon.
In the near future the price for aluminium windows becomes same, as well as on
plastic. For an advertising campaign of aluminium windows money resources be
required on following actions: on placing of advertising messages in printing
editions, for creation and outdoor advertising placing, for fee of the
photographer. The volume of necessary investments is defined in our case by
calculation of the estimate on the basis of quotations on marketing researches,
services of the photographer, advertising agencies and duration of advertising
of the goods. Before to start working out and release of the new goods, it is
desirable to find out, whether has sense it to do. For any industrial
enterprise manufacturing something is understood as reception of profit on
realisation of the given product. And the profit at realisation will be
received in the event that the obtained sum of means will exceed expenses for
manufacture and realisation of this production. To get prospective profit and
in general to sell a product to the enterprise it will be possible only if
consumers in the market are ready to buy the goods that is if these goods are
necessary for them. Therefore, in the beginning it is necessary to find out,
whether exists in the market so-called? A niche?, which could? To fill? These
goods. Marketing researches are for this purpose carried out. In rare instances
the enterprise is engaged in it? The manufacturer. Usually for it address in
specialised agencies.
In our case such agency is? Media Soft?. The estimate of the
basic expenses on marketing researches is resulted in tab.2.3.9547 rbl. will be
necessary For agency fee These means расходованы on the writing goods: pens, a
paper, paper clips; on communication payment (from calculation of 450 roubles
for communication on a city and 1077 roubles for 5 hours of conversations with
other cities); attraction for research of five persons which will be engaged in
audience interrogation (potential consumers) and miscellaneous costs.
Interrogation of potential consumers? It is a method of
gathering of the information. There is a version of interrogation which is
called deep interrogation. It is applied to professional consumers, that is to
experts of certain area. It consists in long conversation interrogated and the
interviewer in which course it is found out, the requirement for what goods for
today is available at interrogated, and also the information on knowledge,
preferences and belief of people, on degree of their satisfaction [27, с.150]
turns out. But this method, unfortunately, in our case is not present
possibility to use. It speaks too a large attendance (presumably, Siberian
region, is more exact heads of the various enterprises in Siberian region) and
complexity of carrying out (duration of conversation is supposed till two
o'clock). Naturally, to lead such discussion by phone it is rather difficult,
and to provide personal meeting of the interviewer and interrogated it is
almost impossible because of their big number. At an advertising campaign
estimation simple interrogation of potential consumers will be used. For this
purpose employees of Open Company "Натали" develop the questionnaire
which questions it is offered to answer consumers at "the Siberian
Fair" during an exhibition and in specialised shops on sale of window,
door blocks, building materials, and also in halls of the trading equipment.
Services of the photographer will manage in the following sum. Cost of one
photo in the size 10 and #61620; 15см. It is equal 50 roubles,20 and #61620; 30
see - 200 roubles. Departure of the photographer costs 300 roubles. To be
necessary 3 photos in the size 10 and #61620; 15 see Hence, expenses on
services of the photographer make 3 * 50 + 300 = 450 roubles. Advertising
messages in printing editions will be executed in colour. Printing editions
give quotations on the publication of the advertising information or counting on
one square centimetre, or for one module which comprises some square
centimetres. Thus modules happen a different configuration: extended on width
(for example, 8 see and #61620; 4 see or 12,8 and #61620; 8,1 sm), extended on
height (12,8 and #61620; 37,7 see). Each edition independently defines the size
of modules. Magazine? Supply and sale? For the colour advertisement offers the
module equal of the one eighth strip that will make 58,5 sq. This module see
there are 1980 rbl. for one exit. Hence, considering, what the magazine leaves
twice a month, expenses will make 2* 1980 = 3960 rbl. the Newspaper? Offers?
Suggests to print the colour advertising message in the form of the module
which dimension 33 sq. see, and its cost 920 rbl. There is a newspaper four
times a month. Thus, on the announcement publication in the newspaper? Offers?
It is necessary to spend 920 rbl. * 4 = 3680 rbl. a month. A weekly journal?
The Siberian advertising? Suggests to print the colour announcement of any
size. Cost of square centimetre of its area / sq. see the second colour page 39
of rbl.; 26 rbl. / sq. see the third colour page (it is penultimate page); 23
rbl. / sq. see the fourth colour page (it is last page) the area of the
advertisement and in that, and other edition it is supposed 7*7 = 49 sq. see
Hence, for the edition? The Siberian advertising? In a month 49* 39* 4 =7644
rbl. (on 2 page) are required; 26 *49 *4 = 5096 rbl. (on 3 page); 23 *49 *4 =
4508 rbl. (on 4 page). Considering that new, it is necessary to force to turn
the advertised goods on it as much as possible potential consumers, that is it
is expedient to place the advertising message on the second page.
For manufacturing of one separate poster with the metal basis
in the size of 1,2 m and #61620; 1,8 m are necessary 6000 rbl. It is supposed
to use such two posters. Hence, Except manufacturing, posters it is necessary
to place 6000*2 =12000 rbl. on city streets. For this purpose it is necessary
to conclude the contract, to issue rent and to obtain the permit in city
administration. It the advertising agency is engaged in all, and these services
will cost about 7000 rbl. in the first month. The next months it will be
necessary to pay only rent of the earth which will make about 200 roubles a
month depending on a city district.
The total sum which needs to be spent for goods advancement
makes more than 45 thousand rbl. the Russian legislation provides reference of
advertising expenses on production cost price, but within certain
specifications. For the given enterprise with volume of goods turnover to 30
million roubles this specification is equal 7,5% that in money terms makes
741,8 thousand roubles. Expenses on our advertising campaign do not exceed the
given specification.
2.2 The estimation and the analysis of indicators of
efficiency of the advertising campaign
Speaking about an advertising efficiency, assume, what profit
will be brought by this action, how much a gain will exceed the means spent for
its carrying out. In the given paragraph the question of efficiency of an
advertising campaign on advancement of the new goods (aluminium windows) Open
Company companies is considered Nataly. Are thus analyzed quantitative and
quality indicators of efficiency of an advertising campaign. How it was already
marked, quality indicators characterise mainly communicative advertising
efficiency, quantitative? Mainly economic (trading) efficiency.
Calculation of requirement for investments for realisation of
this advertising campaign is spent for 12 months during which it should pay
off. Calculation is made according to technique ЮНИДО. Since 1999 operate?
Methodical recommendations about estimations of efficiency of investment
projects?, confirmed by the Ministry of Finance and Gosstroy of Russia. Some
advertising agencies believe that placing of the advertising message can bring
to the enterprise increase in a gain at 50%. In our opinion from realisation of
publicity the enterprise expects gain increase approximately for 20 percent. By
the current moment time level the gain without the tax to the added cost makes
8242569 roubles. Hence, expected level of a gain will be equal 9891082,8
roubles. The increase in a gain from production realisation will make 1648513,8
roubles a year. Proceeding from former level of industrial expenses, it is
supposed that the new volume of expenses will be equal 7938067,2 rbl. That is
expenses will increase for 1323011,2 rbl. a year. For calculation of norm of
discount the percent of inflation at a rate of 14%, bank percent - 15%, a risk
level for the new goods - 13% is accepted. As a result of calculation the norm
of discount will make 42% a year. In the given technique concepts of capital
investments are used, which will make for the zero period of 44681 roubles (is
the requirement for money for contract and rent registration on the earth;
creation of a poster and photos; carrying out of marketing researches) and
15684 roubles for the following period. Methodical recommendations is provided
to estimate efficiency of the project as a whole and efficiency of
participation in the project. The estimation of efficiency of the project is
assumed as a whole by definition of potential appeal of the project for
possible participants and searches of sources of financing. Efficiency of
participation in the project is defined for check of a realizability of the
project and interest in it of all its participants. The choice of the
investment project is based on calculation of economic indicators of efficiency
in which quality it is recommended to define:
1) the net profit;
2) the pure discounted income;
3) internal norm of profitableness;
4) requirement for additional financing;
5) indexes of profitableness of expenses and investments;
6) a time of recovery of outlay; group of the indicators
characterising a financial condition of the enterprise? The participant of the
project. The indicators of efficiency set forth above pay off on the basis of
definition of a monetary stream of the project. Any project represents the
operation connected with reception of incomes and of expenses, that is it
generates monetary streams. As monetary streams understand dependence on time
of monetary receipts and payments at realisation of the project generating it,
defined for all settlement period. The settlement period covers an interval
from the beginning of the project before its end. At a project estimation use
also the saved up monetary stream. Its characteristics? The saved up inflow,
the saved up outflow and the saved up balance are defined on each step of the
settlement period as the sum for flowing and all previous steps. At definition
of efficiency of the given project capital investments concern outflows (the
expense of money resources); expenses for working capital increase. And as
inflows receipts of money resources act. We will define the basic indicators of
efficiency of advertising activity.1. The net profit (ЧД)? It is the saved up
effect (balance of a monetary stream) for all settlement period: ЧД = and #931;
фт, (2.1) where фт? A monetary stream, thousand rbl.2. The pure discounted
stream (ЧДД)? The saved up discounted effect for the settlement period: ЧДД =
and #931; фт * and # 945; т * (), (2.2) where and #945; т? Discounting factor
(reduction of monetary values of monetary streams occurring at different times
to value for the certain moment of time? The reduction moment), it pays off
under the formula 2.3 Е? Norm of discount; it is set by investors or
participants of the project for a year. In this case it includes the amendment
on the risk, 13% equal for a new product, also it includes bank percent (15%)
and inflation percent (13%); Е = 41%; and #913; т = 1/[ (1+Е) ^tt-t0], (2.3)
where tт? The moment of the termination or the beginning of t that step; t0?
The reduction moment, gets out any way. ЧД and ЧДД characterise excess of total
monetary receipts over total expenses for the project. Difference (CHD-CHDD)
name project discount. For a project recognition effective it is necessary,
that ЧДД was positive.3. Internal to profitableness holes (ВНД)? Eve's this
such positive number at which equality to norm of discount (Е=Ев) ЧДД it is
equal to zero. At Е and #61502; Eves ЧДД it is negative, at Е and # 61500;
Eves? It is positive. Hence, for an estimation of efficiency of the project it
is necessary to compare Eves with norm of discount Е. If Eves> Е, we have
positive ЧДД and consequently the project is effective.4. A time of recovery of
outlay? It is duration of the period from the initial moment till the
recoupment moment. The recoupment moment considers that moment of time after
which the current net profit becomes and further remains non-negative.5. A time
of recovery of outlay taking into account discounting? It is duration of the
period from the initial moment till the moment of a recoupment taking into
account discounting which is defined as time moment after which the current net
profit becomes and further remains non-negative.6. Requirement for additional
financing (ПФ)? This maximum value of absolute size of negative memory balance
from investment activity. Size ПФ shows the minimum volume of external
financing of the project, necessary for maintenance of its financial
realizability.7. Requirement for additional financing taking into account
discount (ДПФ)? The maximum value of absolute size of the negative memory discounted
balance from investment activity. Size ДПФ shows the minimum discounted volume
of external financing of the project, necessary for maintenance of its
financial realizability.8. Profitableness indexes characterise? Project return?
On the means enclosed in it. At an efficiency estimation are often used:? An
index of profitableness of expenses? The relation of the sum of monetary
inflows to the sum of monetary outflows;? An index of profitableness of the
discounted expenses? The relation of the sum of the discounted monetary streams
to the sum of the discounted monetary outflows;? An index of profitableness of
investments (ИД)? The relation of the sum of elements of a monetary stream from
operational activity to absolute size of the sum of elements of a monetary
stream from investment activity. ИД it is equal to relation ЧД increased by
unit to memory volume of investments;? An index of profitableness of the
discounted investments (ИДД)? The relation of the sum of the discounted
elements of a monetary stream from operational activity to absolute size of the
discounted sum of elements of a monetary stream from investment activity. ИДД
it is equal increased by unit relation ЧДД to the memory discounted volume of
investments. At calculation ИД and ИДД can be considered or all capital
investments for the settlement period, or only initial capital investments.
Calculations show that the project pays off for three months
both taking into account discounting and without it. So small time of recovery
of outlay is received because the volume of financial investments was not
great. Project discount is equal to 45,9 thousand rbl. project Discount? It is
time aspect. He says that during realisation of the project cost of means of
the investor has decreased on this size that in percentage terms from initial
cost makes 20%. Indexes of profitableness of expenses and profitableness of the
discounted expenses there is more than unit. It speaks about excess of the sums
of monetary inflows over the sums of monetary outflows (taking into account
discounting and without it). But their value not much more unit that speaks
high norm of discount (42%). Positive value of the net profit says what the
investment project? The advertising campaign - is capable to make profit, but
this fact does not answer a question? Whether the project in time taking into
account inflation and risk factors is effective. The answer to this question
can give value of the pure discounted income. Efficiency of the project from
the point of view of the investor according to a technique is defined,
proceeding from positivity of value of the pure discounted income. In this case
ЧДД> 0. Hence, the project is economically effective. Estimate communicative
efficiency we can only after release of an advertising campaign of the new
goods and after certain time. Thus the primary information on which basis the
efficiency analysis will be made is required to us. There are three basic
methods of gathering of the primary information: supervision, experiment,
interrogation. The supervision method is used, when researchers directly trace
actions of the studied person. The experimental method serves for measurement
of cause and effect relations. It is used at trial marketing of new production
in geographically isolated area and for trial carrying out of advertising
campaigns more often. The most widespread way of gathering of the primary
information is? Interrogation. By interrogation of real or potential buyers the
researcher receives the information on their relation to purchase, learns their
opinion on the goods and motives of carrying out. Specific methods are applied
to an estimation of a communicative advertising efficiency: - studying the
relation of consumers to the goods; - tests for storing; - psychophysical
methods; - feedback methods. We will estimate indicators of the communicative
advertising efficiency which maintenance will be published in printing
editions. Developed by employees of Open Company "Натали" advertising
also is presented in the appendix 4. The primary information for the
advertising analysis is necessary for receiving from results of the spent trial
advertising campaign with use of psychometric methods. The trial advertising
campaign is informative enough method of advertising researches, does not require
unlike other methods extrapolation on a real life. Its lack consists that it
does not establish the reason of tearing away of advertising by the buyer. For
liquidation of this lack, results of a trial advertising campaign are necessary
for combining with psychometric research. Psychometric research is one of the
most widespread and effective ways of testing of static advertising when the
total impression of the seen advertising material is exposed to the analysis.
It is based on drawing up of "perception cards". Answering special
questionnaires, people estimate the seen message. Such testing of advertising
is spent to two stages: to its exit on the market and after (in the course of
carrying out of an advertising campaign and on its results). At the first stage
tentative estimations of quality of advertising and its ability to execute
tasks in view are given. By results of the first stage of testing it is
possible to predict efficiency of influence of advertising on the consumer, to
reveal its strong and weak places and if it is necessary, to correct the
advertising message. At the second stage when the advertising message is let
already out on the market and has passed certain time, sufficient for
acquaintance with target audience advertising, testing allows to bring
intermediate or an adjusted total. Testing held by us is aimed at forecasting
of efficiency of influence of advertising for the consumer. It is the first
stage of testing of advertising. In the third chapter we will define ways of
increase of efficiency of an advertising campaign. They will be necessary for
us to raise indicators of economic and communicative efficiency in the present
paragraph. At carrying out of a trial advertising campaign in Open Company
"Натали" the special advertising leaflets containing various
advertisements, and also the questionnaire for an advertising estimation have
been prepared. The questionnaire developed by employees of Open Company
"Натали" for interrogations, is presented in the appendix 5. Interrogation
was made: - at "the Siberian Fair" during exhibitions; - in
specialised shops on sale of window, door blocks, building materials, and also
in halls of the trading equipment. In total 350 respondents have been
interrogated. From them nearby 300? Employees of the various companies of
Novosibirsk, the others? Visitors of shops of the building materials, getting
production for a private use. Interrogation was made as follows. The
interrogated person was offered to see the booklet, and then to answer
questionnaire questions.
The answer of respondents to the first question has shown
that they in the majority positively concern a print advertising if the
advertiser bears a maintenance responsibility of advertising and if it is
executed qualitatively. Answers to questions 2, 3 show level of awareness the
consumer about Open Company "Натали" firm. The answer to a question 4
characterises Open Company "Натали" advertisement. As we see, 28% (98
of 350 persons) have remembered advertising of aluminium windows. This indicator
is at high enough level, i. e. advertising of new production of the enterprise
is remembered. On the basis of it it is already possible to tell that
advertising possesses certain level of efficiency as even the simple knowledge
of mark of a product raises trust to it in comparison with absolutely
unfamiliar mark. The answer to a question 5 characterises attractiveness of
advertising of Open Company "Натали", and the answer to a question 6?
Its recognizability. More than 40% of respondents have paid attention to
advertising of aluminium windows, have noticed in it some unique lines. It once
again proves, what Open Company advertising? Натали? Is attractive for
consumers. However from paid attention to the given advertising, only 15% have
remembered a firm trade mark. It means, what Open Company advertising? Натали?
Has low level of recognizability. Low level of recognizability means, in turn,
that the advertisement demands considerable time for recognition and is
perceived in less wide spatial range. Answers to the remained questions of 7-11
questionnaires characterise propaganda force of the advertisement of Open
Company "Натали". We have received following results on components of
the given indicator:
1) the subjective importance of production? Have positively
answered 154 of 350 persons (44%);
2) uniqueness of advertising? 35 from 98 persons (35,7%);
3) integrity? 28 from 98 persons (28,6%);
4) plausibility? 25 from 98 persons (25,5%). By these results
of interrogation it is possible to draw a conclusion what though Open Company
production? Натали? Has the high subjective importance for consumers and it is
unique enough, it is not for them enough complete and plausible. Nevertheless,
at 12% of the interrogated, aluminium windows which have paid attention to advertising
of Open Company? Натали?, there was a desire get given production. On this
indicator it is possible to judge enough high communicative advertising
efficiency of Open Company? Натали?. Thus, it is possible to predict a high
economic and communicative advertising efficiency of Open Company? Натали?.
However she demands some completions in communicative sphere for increase of
its efficiency. In conclusion of the second chapter we will draw following
conclusions.1. In carrying out of an advertising campaign of the new goods in
Open Company "Натали" is engaged has dressed sale. For advertising of
the new goods it has been decided to use printing and the outdoor
advertising.2. For outdoor advertising placing advertising agency "Agama",
for a print advertising has been chosen? Agency "Duet" and
"Region a press", for marketing researches? Agency "Media
Soft".3. For an estimation of economic efficiency of an advertising
campaign the comparison method at which the effect from publicity carrying out
has been compared with expenses for its realisation was used. The estimation
has shown that expenses for goods advancement will pay off within three months
and as a whole the project is economically effective, that is is profitable.4.
The estimation of communicative efficiency of an advertising campaign, that is
an estimation of its quality indicators, was made on an example of a print
advertising of the new goods with use of a method of testing. Advertising
leaflets, and also the questionnaire for an estimation of advertising have been
prepared by consumers. Results of testing of advertising have shown that
advertising is remembered and attractive for consumers, however it is
insufficiently distinguished. Advertising has the high subjective importance
for consumers and is unique enough, but it is not for them enough complete and
plausible.5. At 12% of the interrogated respondents who have paid attention to
advertising of aluminium windows of Open Company? Натали?, there was a desire
get given production. Therefore it is possible to predict high economic and
communicative efficiency of the given advertising campaign.
3. Ways of increase of efficiency of advertising
activity to open company nataly
3.1 Methods of rational use of possibilities of
advertising agencies
Advertising can be developed for clients or the people who
are not employees of agency, or clients. The space and time in mass media are
usually got through the special companies by directly clients, and market
research is carried out by the special research companies. So advertising
agencies what for are necessary? Agencies are necessary for planning and
carrying out in a life of advertising efforts of the client [29, with.127]. The
world of advertising agencies is so wide that, most likely not any advertiser
(especially beginning) knows what kinds of advertising agencies there are also
what services they give. Therefore rational use of possibilities of advertising
agencies acts on the foreground.
In advertising? Agency of a full cycle? Is the organisation which
is carrying out four basic functions:
1) management of the account;
2) creative services;
3) planning and area acquisition in mass media;
4) researches. Such advertising agency usually has own
service on conducting the account of the client, the department of movement
performing work on internal tracing of realisation of projects, division for
working out broadcasting both a printed matter and a staff department. As a
rule, the contract between? Agency of a full cycle? And the client defines that
the agency for commission fee or other co-ordinated fee makes the analysis of
the data of the market, offers strategy, prepares recommendations, develops
advertising, places it in in advance co-ordinated mass media, checks
advertising on conformity to requirements of the customer, exposes the invoice
to the client within the limits of the voted budget, receives money resources
of the client into the accounts and pays services of mass-media and suppliers.
Besides, the agency can incur the functions which are not included in the
contract and not paid separately: it is work on public relations, research
projects, direct marketing, marketing of actions and stimulation of sales. Some
agencies offer specific services through the divisions or branches. Clients can
use specialised agencies also.? Agencies of a full cycle? In Novosibirsk while
is not present. It most likely is connected with that, for the effective
organisation of works of such agency the big material inputs and coverage of
great volume of manufacture and the information are required. Work of
specialised agencies differs works of "agency of a full cycle". They
specialise or in performance of certain functions, or in certain branches
(public health services, computers, agriculture), or in a certain kind of works
(for example, marketing researches, placing of advertising messages in
mass-media, TV advertising placing, outdoor advertising placing and so on).
Specialised agencies work in different areas of marketing: direct marketing,
stimulation of sale, public relation, marketing through public and sports
actions, design of packing, design of corporate symbolics and so on. Exist such
business of agency which specialise in trading communications. Along with
business? Such agencies are engaged in advertising in trade advancement,
trading exhibitions and presentations. Such agencies in Novosibirsk the set and
appears every day more and more. Specialised agencies need to be used in all
cases when the enterprise has no possibility to take advantage of services of "agency
of a full cycle" and independently spends an advertising campaign. In the
present state of affairs services various specialised agencies will be
necessary for it: for carrying out of marketing researches, for creation
external, a print advertising, advertising on radio and TV. In our case of Open
Company "Натали" addresses in specialised agencies ("Media the
Software", "Agama", "Duet", "Region a
press"). But when there is a choice? To address in "agency of a full
cycle" or in specialised agency, it is more rational to address in the
last when the advertised goods or service demand the special approach, and
"the agency of a full cycle" cannot provide such approach. In
specialised agency it is necessary to address and when the enterprise cannot
take advantage of services of "agency of a full cycle" owing to
limitation of incomes. Virtual agencies? It is recently arisen phenomenon of
the agency working like group of people of liberal professions. The tendency of
occurrence of virtual agencies sees as well that there is no necessity for
habitual office. Many managing directors of advertising agencies assert that
from third to half of offices of any agency are empty, as experts work on a
call of clients or are on office affairs. In virtual agency employees have no
constant office, they work at home, in cars or offices of the clients. Modern
computer technologies provide members of such command with all necessary for
work out of office. Their meetings will be organised by a principle of
videoconferences or by means of an exchange of e-mail. When it is necessary for
members of team to gather at office, they can to include the computer in a
suitable place.compact multipurpose racks with things necessary for work can be
resulted on a current workplace. Within the limits of the virtual concept the
space divided into parts, is replaced with free space for employees, computers,
faxes, phones and all that members of team bring with themselves. Now virtual
agencies are the most rational for using for carrying out of marketing
researches, the analysis of the market, carrying out of interrogations, that is
for reception of information services, and also for advertising placing in the
Internet. Agencies take the incomes from two main sources? Commission fee and
fees [29, с.163].commission system. Right at the beginning advertising agents
operated more likely on behalf of mass-media, instead of in interests of the
client. In the nineteenth century advertising agents represented itself as
representatives of newspapers, magazines and printers of posters. If the agent
brought advertising to the publisher, that paid to it commission fee which were
defined, proceeding from volume of the work executed by the agent for the
blessing of business of the publisher and by preparation of advertising to the
publication. The agent could write the advertising text, think up a breadboard
model, type the text and mark a place for drawings and the photos which were a
part of advertising. These efforts of the agent saved to the publisher time and
reduced volume of its basic work. In process of growth of the importance of
advertising advertisers aspired to employ as less as possible people. In 1901
Klarens Kurtis from Curtis Publishing has established 15% of commission fee for
advertising agencies? 10% for preparation of materials and 5% for maintenance
of immediate payment [29, с.163]. Introduction of such practice has changed all
advertising industry. Instead of granting one mass-media to many advertisers
now the agent operated in interests of one client, placing its advertising in
many mass-media. However the commission system remained hardly probable not the
unique form of compensation.commission fee at a rate of 15% long time were
considered as a certain absolute standard though the great number of exceptions
of this practice is already observed.
The note: the sum of figures can be below 100 percent as
answers of some advertisers do not get under one of these systems of
compensation or answers have not been received. The rate is defined in the course
of negotiations between the client and agency. As a result of these
negotiations it is established, what work will be carried out by agency under
the contractual rate of commission fee and that should be paid separately. The
alternative form of commission fee is гонорарная the system. This system is
equivalent that for which advertisers pay work of the lawyers. Clients of
agency agree on the hourly fee or the tariff. This fee can change depending on
employed divisions and level of wages in each division. The uniform hourly fee
for all work, irrespective of level of actual earnings of executors is in
certain cases co-ordinated. These payments also join expense accounts, payment
of moving and all articles which are usually paid at commission system. Payment
is made in the pure state without any extra charges or commission percent.
Mass-media also expose accounts to clients in the pure state without increase
at the size of commission fee. A solving element in гонорарной to system is the
trust. The client should be assured that each employee of agency conducts the
strict account of working hours and correctly distributes its expenses on
concrete commodity marks or projects. Besides, the client should know that the
hourly tariff of agency fairly reflects wages, an overhead charge and the
established rate of return [29, with.169]. How the agency estimates the fee? It
defines expenses on a wages, rent, telephone conversations, mail, internal
operations, equipment rent, taxes and other costs, and then establishes, what
hour tariff in a condition to cover all these costs, and also to provide to
agency profit. Widespread practice is the fee establishment as private from
division of the trebled mid-annual wages of the worker of agency into average
quantity of working hours in a year [29, with.169]. In any case for the
enterprise which spends an advertising campaign and addresses to advertising
agency services, it is more rational to use commission system of payment. The
matter is that at use of commission system, reducing expenses on advertising,
the client really achieves economy, in whatever volume the advertising budget
was reduced. In case of application гонорарной systems the same client will
receive economy on reduction of schedules of an advertising campaign, but will
continue to pay to agency the working hours connected with contact to
mass-media, revision of plans of use of mass-media and alteration of exposed
accounts? Invoices [29, с.170]. From the aforesaid the conclusion arises what
easier to deal with the advertising agency using commission system of payment.
As to an advertising agency kind the advertiser solves this question
independently. Arguments in favour of this or that kind of advertising agency
should develop depending on what amount of works should be executed to the
agency, what advertising purposes are pursued by the advertiser, it has what
volume of means. It is obvious that services of "agency of a full
cycle" will manage to the client expensively. In our case we advertise the
new goods, therefore it is more expedient to employ agency of a full cycle that
it has carried out market research, has offered strategy, has executed
advertising and has placed it in mass media. But, considering impossibility of
use of that kind of agency (in the absence of them in the market of advertising
services of Novosibirsk), it is necessary to address to services of specialised
agency, is more true even to several. They are already listed: - "Media
the Software" (for carrying out of marketing researches); -
"Agama" (for outdoor advertising working out); - "Duet",
"Region a press" (for print advertising working out). Thus, the given
agencies have been chosen because "agencies of a full cycle" in
Novosibirsk while are not present. Besides, advertised production of Open Company
"Натали"? The goods-novelty, - demand the special approach at
advertising campaign carrying out. As payment system the commission system of
fee of agency as it is to more flexible and adequate results from an
advertising campaign is chosen.
3.2 Methods of increase of efficiency of advertising
activity
Advertising not only gives the information on the goods, but
also forms its image, gives it the socially-psychological importance, defines
its position among the competing goods. At the heart of any competent
advertising two components lie: the thought over concept (strategy) of
advertising and the interesting creative decision. The most difficult in
advertising? To find the base concept of advertising inducing to purchase,
allocating the goods from a number of the competing goods or a commodity
category. The creative decision should be inseparable from the chosen concept.
Any creative decision which strengthens the concept, helps to apprehend it,
does more evident, clear or more convincing, strengthens effect of advertising.
Therefore it is necessary to develop advertising idea and strategy of
advertising of the goods (service) for increase of efficiency of an advertising
campaign. Advertising strategy answers a question how to construct an
advertising campaign, to realise marketing problems. In wider plan value of
advertising strategy consists in, that: - to define, what sense advertising
should give to the given goods that the potential buyer has given it
preference; - to inform to the consumer concrete benefit, the permission of a
problem or other advantage of material or psychological property which gives
goods acquisition. Thus it is necessary to take into consideration that there
are only two base reasons on which people buy the goods:
1) the goods can solve any existing problem or a problem
which can arise;
2) the possession the goods allows the person to join
psychologically something that it is pleasant to it or he considers for itself
(himself) important. At a choice of strategy of advertising a number of factors
should be considered:
1. Specificity of a commodity category (there are such
commodity categories where the consumer gives a great attention to utilitarian
properties, and such where for it the emotional background is more
important).2. Specificity of the goods and possibility to allocate and inform
on its significant properties for the consumer.3. Actions (advertising) of
competitors. Often the market is overflowed by advertising of one type and it
irritates people. Then it is necessary for it to oppose advertising of other
type.4. Moods of target audience.
1. Specificity of a commodity category (there are such
commodity categories where the consumer gives a great attention to utilitarian
properties, and such where for it the emotional background is more
important).2. Specificity of the goods and possibility to allocate and inform
on its significant properties for the consumer.3. Actions (advertising) of
competitors. Often the market is overflowed by advertising of one type and it
irritates people. Then it is necessary for it to oppose advertising of other
type.4. Moods of target audience.
Advertising idea? An art way of an embodiment of advertising
strategy. It can be a successful image, the character, a slogan, helping to
present the advertising information which has been generated at a stage of
development of creative strategy. Creative advertising strategy sets an essence
of the advertising message, and the advertising idea invests it with the
interesting, attractive form. So, result of marketing researches and
communication diagnostics is formation of idea of an advertising campaign, the
media plan working out, which components? The initial and additional data.
The media plan finally should contain the following data:
1) the list of carriers of the advertising information;
2) the list of parametres of each kind of carriers: for the
press? The areas occupied with advertising, for rollers? Activity, for a dummy?
Type of graphic or text editors etc.;
3) the calendar plan-schedule of an exit of advertising
messages (the table with instructions of general time of hire, quantity of
rollers, the transfer name, day, time, for the press? Quantity of exhibitions
etc);
4) the plan-estimate on everyone рекламоносителю and the
general budget of the media plan;
5) quantity indicators of efficiency of an advertising
campaign;
6) analytical comments to results of each stage of campaign;
7) alternative variants of media plans.
Thus, a basis of an effective advertising campaign make: the
interesting creative decision (advertising idea) and the thought over strategy
of advertising. Thus it cannot be effective if there is no one of these
elements: whatever was successful the advertising idea, it will not give
results without realisation of competent strategy of advertising, and at the
same time, whatever was thought over the strategy of advertising without the
successful creative decision, i. e. without its basic maintenance, advertising
too will be inefficient. In our case as has shown research of an advertising
campaign of aluminium windows of Open Company "Натали", the project
is effective. The advertising idea is defined. Advertising strategy is however
insufficiently clearly stated. We will take advantage of the given reserve for
increase of efficiency of an advertising campaign of Open Company
"Натали", i. e. we will develop advertising strategy.
3.3 Use of methods of optimization in advertising
activity
One of optimisation methods in advertising activity is use of
various channels for mass communications, information transfers and advertising
distributions. Information transmission media, or carriers, the TV, radio,
newspapers, magazines, cinema, the Internet, the outdoor advertising are. The
list of means of media shows that it is the powerful tool of an advertising
campaign. Media channels differ from each other duration of contact,
periodicity, in circulations, geography of distribution and popularity, and
cost of one advertising message in the concrete media channel depends on a
format, colour, a place, the program, time and other factors. But in any case
it will be the price not for a picture or a film hank, and for contact to an
audience, more precisely, with target group (target group) [1, с.69]. In an
advertising campaign some carriers are used, as a rule. It allows to optimise
quantity indicators of efficiency of the reference. Estimations of audiences
concern efficiency quantity indicators. Estimations of audiences of edition
Audience? An estimation of number of readers of the target group reading given
release of the given edition. Rating? The relation of an audience of the
edition to the target audience aggregate number, expressed in%. Conversion?
This relation of the sum of ratings in target group to the sum of ratings of
control group or in all general totality of readers. Reach frequency
distribution? Distribution of achievements on frequency, that is distribution
of an audience of the edition on number of the read releases of the edition.
Estimations of an audience of advertising campaign GRP? A cumulative rating,
that is the sum of ratings of all editions making the given advertising
campaign. Effective reach? Effective achievement, that is the coverage of the
target group counted with application of weighing on number of read editions.
Cover? Coverage or estimation of number of the general totality, satisfying to
selection conditions in target group and reading at least one edition during
advertising campaign passage. Average frequency? Average frequency
(repeatability), that is an average on an audience of campaign number of the
read editions or average possibility to see the advertising message. Reach
frequency distribution? Distribution of an audience of an advertising campaign
on number of the read editions (disorder). Affinity? An index of coincidence on
reach? This relation of coverage of target group to coverage of control group
of the general totality, increased by hundred. Estimation of cost of
advertising campaign CPRP (cost-per-rating-point)? Cost of point of a rating: /
where Cost? Cost of one advertising area of the edition or one roller. CPT
(Cost-per-tausend)? Cost of 1000 captured recipients (those who has received
advertising) in target group (plan-forecast):
CPT Reach? Cost of 1000 reached recipients in target group
(postanalysis):
Estimations of audiences and advertising campaign cost allow
to pick up an optimum variant of a parity of quantity of editions and
publications for target groups. Other method of optimisation of advertising
activity at the enterprise is definition of the budget of an advertising
campaign. Budget working out promotes the most favourable distribution of
resources, and it helps to hold expenses in in advance certain frameworks. The
complex budget on the advancement program assumes decision-making on two
questions [28, с.116]: - total of the means allocated for all complex of
advancement, including advertising, sale stimulation, паблик рилейшинз,
personal sales; - definition of a share of each element of a complex of
marketing communications in the general program of advancement. Budget size on
advancement define in several ways. In practice usually do not rely entirely on
any one, and use a combination of several methods:? In percentage to a sales
volume (last period or assumed);? Taking into account the purposes and
problems;? On the basis of dependence modelling between level of communications
and behaviour of the consumer;? On the basis of costs planning;? On the basis
of expenses of competitors. Most often use an indicator of a percentage parity of
the sum of expenses for advancement to a total cost of sales: where And?
Assignments for the general program of advancement, rbl.; Оп? The total cost of
sales, rbl. Preservation invariable the same indicator assumes that the optimum
parity between the sum of expenses and total cost of sales is found. After the
statement of the given indicator the most important thing? To give the forecast
of sale of the goods for forthcoming year. Also the forecast of sales on branch
as a whole for this purpose is required. For coordination in uniform indicators
of expenses of competitors, expenses for advancement and a total cost of sales
use size of expenses for unit of a share of the market. This indicator is
useful at comparison of an advertising efficiency of separate firms. It is
considered that the firm which spends for advertising counting on unit of one
share of the market the smaller sum, achieves efficiency. However the support
on these indicators can prevent to see dynamics of the market, those changes
which occur from year to year in the different markets to different marks. At
the approach taking into account the purposes and problems the attention is
focused on the purposes which are necessary for reaching at realisation of the
program of advancement: - what sales volumes and profit it is necessary to
reach; - what share of the market which should be won; - what groups and market
areas should be processed; - what should be response of consumers. Then
problems are formulated, that is define strategy and tactics of marketing
communications of the enterprise which are capable to lead to achievement of
objects in view. And after that deduce an estimated cost of the full program of
advancement which becomes a basis for definition of the size of the budget.
Some companies establish the budget on advancement, being guided by expenses of
competitors. Thus the basic accent becomes on advertising expenses in mass
media, after all advertising in mass-media serves as the basic means of
positioning of the company in creation of a target segment of the market. Thus
it is important to remember that budget orientation should correspond to the
strategic group of the companies operating in branch if the company aspires to
keep the share of the market. For optimisation of advertising activity of Open
Company? Натали? It is necessary to recommend use of various channels of
distribution of advertising: except a print advertising in newspapers and the
outdoor advertising to use various magazines, the Internet, radio. For
definition of the budget of advertising of aluminium windows for Open Company?
Натали? In the first year it is necessary to use a method on the basis of costs
planning as goods deducing on the market demands the big initial expenses for
advancement. In the first months strong enough push is necessary whenever
possible quickly to reach a sales volume providing profitability. For formation
of awareness and prompting to test the goods it is required much more efforts
in sphere of advertising and sale stimulation, than for maintenance of a high
break-even sales level to constants of consumers. The big initial expenses when
sale starts to grow with zero, can turn back in the first year losses following
the results of primary activity. Similar intensive expenses? In the advance payment?
Are called as investment expenses. However they assume that like capital
investments in means of production will bring in the income the next years. The
next years for drawing up of the budget of advertising for Open Company?
Натали? It is recommended to use the approach uniting a method, a method on the
basis of expenses of competitors and a method? Percent to a sales volume?. By
this moment the certain size will be generated? Rather invariable indicator?
Advancement / sale? Also it will be possible to consider that the optimal
parity between the sum of expenses and total cost of sales on which to be
guided further at drawing up of the budget of advertising activity is found.
The conclusion
The purpose of the given degree work consisted in research of
an advertising campaign of the new goods in Open Company Nataly. And definition
of ways of increase of efficiency of advertising activity for the enterprise as
a whole. By the received results it is possible to tell that the work purpose
is reached. In work a number of problems which have been solved as follows also
has been planned. The first problem - research of theoretical aspects of
efficiency of development of advertising activity. The decision of the given
problem has allowed to draw following conclusions. Advertising? It is any paid
form of impersonal representation and stimulation of sale of ideas, the goods
and services by the certain sponsor. Advertising is the most significant making
system of marketing communications which allows the enterprises to achieve
long-term competitive advantage, and also serves as the basic tool of
positioning of the enterprise in consciousness of a target segment of the
market. The essence of advertising consists that it hands over by means of mass
media the information on consumer properties of the goods for the purpose of
creation of demand for it. The advertising purpose consists in systematic
influence on mentality of the person to cause in it desire to get the known
blessings. Advertising became the integral and active part of a communication
complex of marketing. And its level of development defines quality and
efficiency advertising-information work the manufacturer and its conformity to
new requirements of the world market. The second problem - a substantiation of
an advertising campaign of the new goods in Open Company Nataly. We have
received following results. In carrying out of an advertising campaign of the
new goods in Open Company "Nataly" is engaged has dressed sale. For
advertising of the new goods it has been decided to use printing and the
outdoor advertising. For outdoor advertising placing advertising agency
"Agama", for a print advertising has been chosen? Agency
"Duet" and "Region a press", for marketing researches?
Agency "Media Soft". For an estimation of economic efficiency of an
advertising campaign the comparison method at which the effect from publicity
carrying out has been compared with expenses for its realisation was used. The
estimation has shown that expenses for goods advancement will pay off within
three months and as a whole the project is economically effective, that is is
profitable. The estimation of communicative efficiency of an advertising
campaign, that is an estimation of its quality indicators, was made on an
example of a print advertising of the new goods with use of a method of
testing. Advertising leaflets, and also the questionnaire for an estimation of
advertising have been prepared by consumers. Results of testing of advertising
have shown that advertising is remembered and attractive for consumers, however
it is insufficiently distinguished. Advertising has the high subjective
importance for consumers and is unique enough, but it is not for them enough
complete and plausible. At 12% of the interrogated respondents who have paid
attention to advertising of aluminium windows of Open Company Nataly, there was
a desire get given production. Therefore it is possible to predict high
economic and communicative efficiency of the given advertising campaign. The
third problem - definition of ways of increase of efficiency of advertising
activity. As has shown research of an advertising campaign of aluminium windows
of Open Company "Nataly", the project is effective. The advertising
idea is defined. Advertising strategy has been however insufficiently clearly
stated. Advertising strategy has been developed for increase of efficiency of
an advertising campaign of Open Company "Nataly". For optimisation of
advertising activity of Open Company Nataly. It was recommended: First, use of various
channels of distribution of advertising (except a print advertising in
newspapers and the outdoor advertising to use various magazines, the Internet,
radio); secondly, to practise planning of the budget of advertising activity.
For definition of the budget of advertising of aluminium windows for Open
Company Nataly. In the first year it is necessary to use a method on the basis
of costs planning as goods deducing on the market demands the big initial
expenses for advancement. In the first months strong enough push is necessary
whenever possible quickly to reach a sales volume providing profitability. For
formation of awareness and prompting to test the goods it is required much more
efforts in sphere of advertising and sale stimulation, than for maintenance of
a high break-even sales level to constants of consumers. The big initial
expenses when sale starts to grow with zero, can turn back in the first year
losses following the results of primary activity. Similar intensive expenses?
In the advance payment? Are called as investment expenses. However they assume
that like capital investments in means of production will bring in the income
the next years. The next years for drawing up of the budget of advertising for
Open Company? Натали? It is recommended to use the approach uniting a method
целеполагания, a method on the basis of expenses of competitors and a method?
Percent to a sales volume?. By this moment the optimum parity between the sum
of expenses and total cost of sales by which it will be possible to be guided
further at drawing up of the budget of advertising activity will be found.
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