DEVELOPMENT OF MARKETING COMPLEX OF NEW GOODS: MARKETING AND...

DEVELOPMENT OF THE MARKETING COMPLEX OF A NEW PRODUCT: SALES AND SERVICE

Studying the material of the chapter will allow the student:

know

• Features of planning a sales strategy for innovative products, depending on the stage of the life cycle;

• the main stages of strategic planning of sales of innovative products;

• types of intermediary structures in the sale of innovative products;

• key areas for stimulating sales of innovative products;

• the fundamentals of merchandising new products;

• principles of organization of service of high-tech products;

be able to

• justify the forecasted volume of sales of an innovative product;

• carry out analysis of the prospects of interaction with the sales intermediary;

• conduct analysis of the efficiency of the direct and indirect sales channel;

• plan and evaluate sales promotion activities;

• organize the sale of a new high-tech product in retail trade;

• organize service for high-tech innovation;

own

• The methodology for forecasting the volume of sales of an innovative product;

• the methods of selecting the most appropriate intermediaries;

• methods of assessing the effectiveness of the marketing network of an innovative product;

• tools to optimize the sales network;

• Merchandising techniques for high-tech innovation;

• skills in organizing the service of high-tech products.

Stages of planning the marketing strategy for innovative products

As is known, innovative products are those goods (works, services) that are based on the application of new scientific and technical achievements. Since this product is often technically complex, in its implementation the enterprise faces specific marketing risks.

That is why the system of sales and promotion is central in the whole system of marketing of innovative products. It is in the process of marketing the finished product that it will become clear how accurate and successful all the marketing concepts and strategies used were, including product concept planning, pricing, service policy, etc.

The organization of the sales network for innovative products has significant features .

1. High barriers to the perception of innovative products determine the need for active use of promotion methods in order to inform the consumer about the appropriateness of the acquisition and the features of using the proposed innovative products.

2. Due to the high technical complexity, innovative products require active non-price sales promotion - using sampling (providing free samples for testing purposes), consulting and training before purchase, after-sale service.

3. High requirements to the level of pre-sales and after-sales service, therefore the manufacturer either must organize a zero sales channel, taking on the above functions, or involve those marketing intermediaries who are well prepared for sales of such products.

4. The price incentive for the sale of innovative products should mainly be directed not to direct discounts (since in the case of an innovative product, a lower price is often associated with lower quality and is a barrier to buying), but by varying the method of payment (using installments, goods, on an industrial market - schemes buy-back etc.).

Before we consider the key steps in planning a sales strategy, we'll determine the factors that affect its development.

1. Level of product competitiveness. If an enterprise produces new equipment, then for its distribution in the market, the design features of the proposed product are of great importance. First, the products must comply with regulatory standards, otherwise its sale will in principle be impossible; second, the design features and advantages in the technical and operational parameters predetermine the positioning of the goods on the market.

2. In addition to the basic technological concept, the price of consumption, which determines the costs for the operation of the goods, and the parameters entering the third level of the product model, have a huge impact on the competitiveness of the goods, according to F. Kotler, namely the volumes of technical support; installation, adjustment, maintenance, provision of spare parts, the creation of specialized workshops and mobile teams for maintenance and repair of products, as well as the flexibility of the payment system.

3. One of the most important factors of demand is the price set for new products. For example, in the case of high elasticity of demand for the chain, price minimization can cause a significant increase in sales. It is necessary to analyze the appropriateness of using discounts and various systems of payment for products as a possible tool to stimulate sales. Also, the chain acts as one of the degrees of freedom in the analysis of breakeven. In case the developed technology allows to apply the strategy of leadership in costs, a low price can be used as a barrier for penetration of new firms on the market. On the contrary, in the case of a radical innovation characterized by a high level of quality, the company can apply the cream removal strategy by setting a high price, which in this case is a payment for quality; while you need to actively position.

4. Specificity of market segments with which the company is going to work: solvency of the segment, requirements for the goods and the purchase process, capacity and concentration of segments. When analyzing segments for an innovative product implemented in the industrial market, it is important to consider such an aspect as the degree of authority of the buyer, which creates an authoritative opinion about this product, contributing to the demand for it. For such buyers, it is advisable to provide preferential terms for the purchase of goods.

5. Communication factors are of great importance for the marketing of innovative products. If companies actively participate in scientific and technical seminars, symposiums, demonstrate their developments and achievements at exhibitions, conduct advertising campaigns, they even before introducing innovative products to the market introduce the consumer to it, forming demand. In the absence of preliminary information on a new product, its appearance on the market can be met with caution by the consumer, and the process of demand formation will be too long, which, in turn, will affect the costs and financial results of the manufacturer.

6. One of the most important factors of demand for innovative products is the level of professional training of the personnel of the manufacturing enterprise. This is not only about developers, engineers and designers, on which depends how much the product will be competitive from a technical point of view, but also about marketing and management specialists who must ensure the competitiveness of the product in a commercial aspect.

7. Finally, an important factor affecting demand is the level of transnationality of the company. The higher it is, the wider the external integration of the industry, more new products enter the larger number of foreign markets, its distribution accelerates and the demand for it increases.

Define the key steps in planning a sales strategy.

1. Market research. At this stage it is necessary to determine the level of localization of the market, the potential and actual market capacity (the difference between them allows us to estimate approximately a possible market niche), the dynamics of changes in capacity and profitability, and evaluate the level of competition. In case of introduction of radical innovation it is necessary to analyze the market of substitute goods.

2. Segmentation of the market. The main tasks of this stage are the identification of a priori and a posteriori signs of segmentation, the analysis of segments in terms of requirements for the product, the creation of a functional map, the selection of segments in accordance with the strategy of individual, concentrated or commodity-differentiated marketing. However, the segmentation of consumers as part of sales strategy planning should be aimed not only at identifying what what customers want to buy, but also like wants the customer to implement the purchase process. It is the answer to the last question that determines how the sales channel will be built.

Quite often the requirements for products from different consumer groups may coincide (for example, if the company sells office supplies). However, the requirements for marketing will depend on the specifics of a specific segment of customers. Individuals are likely to be interested in acquiring a small amount of goods; for them, the determining factor in the decision to purchase will be the price of the product. For large companies that purchase wholesale lots of goods, the determining factors will be the possibility of delivery, the availability of installments, discounts for wholesale.

3. Sales volume planning. First of all, it is necessary to determine the forecasted sales volume, compare it with the maximum possible production capacity and compare with the breakeven volume. If the breakeven volume exceeds the forecasted volume, strategic measures should be developed to increase the potential volume of sales. The characteristics of the key methods for forecasting the volume of sales are given in Table. 5.1.

Obviously, not all methods are applicable for estimating the sales volume of innovative products. Thus, forecasting based on past commodity turnover, and also on the basis of analysis of trends and cycles for a fundamentally new commodity is impossible due to the lack of a retrospective. Other methods are applicable only to some extent depending on the specifics of the innovation. For example, for incremental innovation, you can use a method based on past turnover, if you take as a basis data on the sale of the underlying product without taking into account the improvements. Determination of the sales volume by its share is possible if the innovation product has a close substitute, etc. However, it is worth noting that the method of analyzing final consumption is better than others for forecasting the volume of sales of an innovative product, especially if it is sold on the industrial market.

Table 5.1

Methods for forecasting sales volume

Method

Advantages

Disadvantages

Scope of application

The opinion of a group of managers (expert forecasting)

1. Does not require statistics

about past sales of goods.

2. Not limited to the horizon of forecasting.

3. Promotes cooperation

1. Requires a large number of experts.

2. Not all senior employees are sufficiently qualified in sales.

3. Can not be used by a small company

1. When there is no sales statistics (a new product or a new market).

2. Newly Emerging Firms

Sales representatives' opinion (expert forecasting)

1. The method is based on the opinion of those who know the market better than anyone else.

2. Gives an integral

and structural forecast

1. Gives a pessimistic forecast.

2. Trading agents take into account the macroeconomic changes in the market

When selling a mass demand product in several geographic markets

Past turnover (rough extrapolation)

Fast and easy to use

1. Only the annual forecast horizon.

2. Limited scope of effective application

Mainly used by firms - legitimate monopolists for non-elastic goods

Analysis of trends and cycles (extrapolation of the last trend in sales volumes)

1. A good medium-term forecasting tool.

2. Computers allow you to quickly calculate the forecast

1. Only the annual forecast horizon.

2. Limited scope of effective application.

3. Requires data on past sales for several years

Can be used for goods of inelastic demand in stable markets

Determining your market share

takes into account the real competitive situation on the market

1. Requires constant recalculations due to the mobility of the price factor.

2. It is difficult to predict the emergence of new competitors and new products

It is advisable to use in markets with severe competition

Final consumption analysis (direct consumer survey)

Allows you to develop a sales forecast in cases where other methods are not applicable or are not effective

Complex and time-consuming

1. For forecasting the sale of substitute goods.

2. To forecast the sale of a new for of this product market.

3. When the number of potential buyers is small

4. Determining the length of the sales channel, the number of types of intermediaries used in the sale of goods. The primary issue here is the question of the principle expediency of using any intermediaries in the sales process. The advantages and disadvantages of typical sales channels are presented in Table. 5.2.

Table 5.2

Sales channel characteristics

Channel level

Advantages

Disadvantages

Product Specificity

Zero level (direct marketing) - independent sales without intermediaries

Totally controlled by the movement of goods

The sales market is limited.

Short customer feedback

Radically new innovation; technically complex products

One-level channel (retail intermediaries)

Availability of feedback from the consumer.

Expanding Market Coverage

Absence of complete control over the movement of goods. Strong dependence on the professional qualifications of the mediator

Innovation with both a radical and conservative approach

Two-level channel (wholesale intermediaries + retail intermediaries)

Ability to transfer product service to resellers

There is practically no feedback from the consumer

Incremental

tal

Innovation

(improved

products)

Three-level channel (large wholesale, small wholesale, retail)

Wide market coverage

The process of goods movement is almost impossible to control

Non-innovative products familiar to the market and consumer

After determining the appropriateness of using an intermediary in the sale of products, the most appropriate type of intermediary should be selected based on the analysis of the spectrum and the cost of the services they offer, the correspondence of these services to the specifics of the product.

5. Determine the width of the sales channel. If the length of the sales channel is the number of types of intermediaries involved in approaching the product to the final consumer, the width of the sales channel is the total number of intermediaries. When planning the distribution channel width, three main approaches are used.

1. Extensive distribution is the distribution and sale of products at each retail enterprise that is willing to sell these products. This method of implementation is applicable mainly for simple, inexpensive, small and inexpensive goods of mass demand, for example glassware, various kinds of household goods and consumer goods (cigarettes, toothpaste). In this case, the manufacturer maximizes profit at the expense of production scale.

2. Exceptional distribution - there is a choice of one single reseller in a particular market, which is granted exclusive rights to sell specific products in its region. Authorized dealers and commodity franchisees can serve as examples of exceptional distribution.

3. For a selective distribution of products, the manufacturing company enters into an agreement with two or more retail organizations for which it also grants the exclusive right to sell the company's products in a certain region.

One of the most common mistakes is the firm's desire to get immediate benefit, for example, an attempt to achieve maximum sales of products in the very near future. A much more promising strategy is to ensure strong long-term links with trade, based on mutual trust between the producer of goods and trade intermediaries and guaranteeing stable reliability and high quality of trade services. This type of cooperation pays for themselves in the long run much more efficiently than the less expensive, but spirited sales of products through various, sometimes randomly chosen, resellers.

To date, the two most recent forms of marketing are becoming increasingly important. Expansion of their scope is conditioned by the desire of consumers not only to purchase quality products, but also to be able to obtain after-sales service. The reference to the authorized dealer becomes the buyer's day a kind of guarantee of convenience in using the purchased products.

The choice of how the distribution channel is organized is closely correlated with the promotion policy. If the company uses only extensive distribution, then it must independently advertise and promote its products. With an exclusive and selective distribution, the manufacturer can expect to receive assistance from the trade intermediaries and additional services when promoting products on the market and increasing sales volumes.

You can talk about the organizational and economic structure of the sales channel. In the first case, we are talking about the number and type of participants in the sales channel, in the second - the form of transactions that arise between the manufacturer and the intermediary. A brief description of the main marketing marketing systems in terms of the interaction between the producer and the intermediary is presented in Table. 5.3.

Table 5.3

Specificity of the interaction of the producer and intermediaries within the various sales systems

Sales System

Description

Features of use

Traditional

An independent producer, one or more wholesalers and one or more retailers. Each member of the channel is a separate company, striving to secure maximum profits, even to the detriment of profit-making by the system as a whole.

Products of mass demand. Advantage: no interaction transactions. Disadvantage: there is no single sales strategy

Vertical.

The manufacturer and several resellers act as a single system.

Is an effective sales system for complex products that require additional services: consulting, service, etc. Advantages: the ability to develop a single sales strategy; convenience of control of the participants of the distribution channel.

Disadvantage: high cost

1. A corporate network of specialized stores.

1. Consecutive stages of production and distribution are in one possession.

2. Private negotiation.

2. Independent firms are bound by contractual relations and coordinate their business programs to achieve the greatest commercial results.

3. Managed (commodity franchise)

3. Coordination of the activities of successive stages of production and distribution due to the size and power of one of the participants

Horizontal

Several independent producers create a joint venture to sell products

It is necessary to have producers creating either substitutes or complementary goods. Advantage: separation of costs for the organization of the distribution channel. Disadvantage: transaction costs of interaction

Multi-channel

The manufacturer uses several forms of channel organization

As a rule, it is used in the stage of active growth. Combines the advantages and disadvantages of the above forms

6. The decision to place sales outlets. As the main factors, the following are considered:

• the number of consumers in the area;

• schemes of movement of consumers, i.e. it is necessary to determine the passability of the given sales point (whether it is located on the main routes of movement in the given territory, near a residential area or on a relatively inaccessible territory);

• accounting for the presence of competitors within the area;

• Accounting for the existence of organizations that provide related services.

7. Planning of measures for promotion and sales promotion. The choice of specific methods depends, first of all, on the specifics of the product and the state of the market. Therefore, within I. Ansoff's matrix, "commodity-market"; the promotion tools can be represented as follows (Figure 5.1):

A set of basic tools for promoting products within the matrix

Fig. 5.1. A set of basic tools for promoting products within the matrix "product-market"

Obviously, in the case when the company sells already well-known goods in the old market, the main strategic task is to delay the phase of the decline (an attempt to extend the saturation phase) within the product life cycle. Among the range of available tools aimed at solving this problem, it is necessary to emphasize the price policy (the use of a system of discounts, flexible methods of payment, lending, etc.), active methods of stimulating demand (lottery, shares). In addition, a source of additional revenue for the company may be service.

The reverse situation is the sale of a new product in a new market. In this case, promotion programs should be aimed at achieving two goals - product promotion and the formation of the company's image. The first task is to organize trial sales. Available methods of promotion here are direct marketing and personal selling (especially in the case of the sale of products in the industrial market). Participation in exhibitions and fairs makes it possible, first, to organize a presentation of the company, to acquaint potential customers with the advantages of the proposed products, to realize a certain number of products and (or) to conclude preliminary contracts, and to obtain information on the state of the target market (monitor competitors, obtain information about the preferences of potential buyers, etc.). An effective tool for advancing the situation of a new market and a new product is advertising (the emphasis in the advertising message should be made on informing the potential consumer about the new product).

When selling an old product in a new market, the same set of promotion tools is used, which was considered in the previous case, since, as a rule, the output is old for the company that produces it but is new to the market. Therefore, potential buyers need to explain its consumer qualities and competitive advantages.

Direct marketing and personal selling are not listed as priority promotion methods, as the company will need some time to research the market in order to identify those potential customers on which these activities should be targeted.

The advantage of a company entering the old market with a new product (especially if this product is a modification of the previous one) is the possibility of using the experience of working with already known buyers. The disadvantage may be a negative retrospective experience of the company in this market (in case the previous products were unsuccessfully sold in this market). In this situation, the company should pay special attention to methods of propaganda in order to maintain customer loyalty at the expense of the company's image. To delay the final decline in sales in the situation of the implementation of the old product in the old market, it is necessary to actively apply measures to promote sales. A separate direction of incentives, as well as an additional source of income, can be a service policy.

An important strategic issue is not only the definition of an appropriate tool for promoting products, but also the coordination of promotional and sales promotion activities with resellers.

8. Immediate implementation of the strategic sales plan . The key tasks of this stage are cooperation with trade intermediaries, constant monitoring of sales to assess the effectiveness of strategic activities aimed at maximizing sales (including the evaluation of the effectiveness of the advertising campaign, evaluation of the effectiveness of participation in the exhibition, evaluation of activities to stimulate intermediaries, etc.).

In Table. 5.4 provides a brief description of the considered stages of planning the sales strategy.

Table 6.4

The contents of the key stages of strategic management of the marketing of innovative products

Stage

Primary goal

Key Analysis Objects

Research

Market

Determining the prospects for entering this market

Potential market niche, level of competition, barriers to entry and exit

Market segmentation

Selecting target segments

The requirements of buyers of a certain segment to the estimated product, the cost of working with a certain segment

Sales volume planning

Determine the potential sales volume

Forecasted sales volume, breakeven volume

Organizing a sales channel.

1. Determining the length of the distribution channel.

2. Determining the width of the distribution channel

Deciding on the desirability of using intermediaries Choosing the most appropriate number of intermediaries

Specificity of the proposed products, the marketing potential of the manufacturer, the cost of intermediaries, alternative costs Performance indicators of potential intermediaries (market coverage, turnover, assortment, etc.), contracting costs

Planning events for promotion and sales promotion

Maximization of sales volume due to promotional activities taking into account the specifics of products and the stage of the product life cycle on the market

Budget and timetable for promotional activities, expected results

Implementation of the strategic sales plan

Sales monitoring

The effectiveness of marketing activities

In conclusion, it should be noted that competently planned measures for planning sales strategies can greatly maximize the value of the current cost of the project being implemented for the production and introduction of targeted products to the market, as they affect the project parameters such as:

1) Revenue, which can be maximized by increasing the volume of products sold through a rationally planned sales strategy. It should be noted that in addition to direct impact on the volume of products sold, price promotion in this aspect is also adequate;

2) the cost of products; the growth in sales volume, achieved on the basis of competent strategic sales planning, can lead to the minimization of production costs due to economies of scale,

3) investment; it is necessary to note that investments in marketing activities, including in the strategic planning of sales, can adversely affect the current cost of the project, if they do not become a source of cash inflow;

4) discount rate. One of the most frequent design risks is the risks of product unrealization, the risks of insufficient diversification of sales channels, the risk of breach of contractual obligations of other counterparties, etc. However, strategic marketing planning, in particular the conclusion of preliminary contracts for the supply of products, careful organization of sales channels, rational promotional activities, can significantly reduce commercial risks, and therefore increase the current cost of the project.

thematic pictures

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