graduate work

1.2 Stages of developing an enterprise’s product policy

In the context of constantly changing customer demands, changing technologies and the competitive environment, the survival of an enterprise directly depends on how successfully a set of measures is implemented to create competitive advantages and create such characteristics of a product that “make it constantly valuable to the consumer, thereby ensuring an appropriate profit” .

The following components of product policy can be distinguished, which determine the stages of its formation:

a) analysis;

b) the process of creating a new product (innovation);

c) working with existing goods (variation, i.e. changing an existing product, elimination);

d) trademark (product brand);

e) packaging and labeling;

f) customer service (service)

Since the ultimate success is now the main criterion for assessing the activities of enterprises, and their market opportunities are predetermined by a properly developed and consistently implemented product policy, it is on the basis of studying the market, its development prospects, as well as competitors that the enterprise receives initial information to resolve issues related to the formation, assortment planning and improvement.

Example 9. The efforts made by a leading company to increase the size of the market as a whole are accompanied by measures to protect its share from attacks by competitors. In this case, the leading company resembles an elephant that is being attacked by a swarm of bees. The Coca?Cola Corporation must continually monitor the actions of Pepsi?Cola; Gillette -- repel Bic attacks; Hertz -- keep an eye on Avis; McDonalds -- watch Burger King shares; General Motors -- constantly looking back at Ford; Kodak - keep track of Fuji technical innovations.

To assess sales markets, it is necessary to determine the place of the product in various markets, based on the solvency of demand for the corresponding product, as well as the structure of buyers according to the solvent demand for each of the analyzed markets and the list of competitors.

Market analysis allows you to:

Establish the capacity of the market and its individual segments;

Assess market and forecast opportunities for product sales;

Determine buyer behavior and their solvency;

Identify methods of production and marketing activities of competitors;

Assess the impact of a new product on customers and competitors;

Establish a potential range of products.

The choice of product policy is greatly influenced by the assessment of the possibility of selling a product not only on the local market, but also in the regions. For each market and its segments, capacity is determined - the planned and actual share of the enterprise supplying the corresponding markets with goods.

The enterprise's production program must constantly adapt to constantly changing market conditions.

This leads to the main questions of commodity policy: should changes be made to the production program, and if so, when and in what form? The answer to these questions can be obtained through a systematic analysis of certain information, which is both the basis and the impulse for making marketing decisions regarding a product. This information varies depending on the direction of program changes.

If we are talking about creation (innovation), then the main role is played by data on market and sales potential, on unfilled market niches, i.e. recognition and correct assessment of marketing chances.

The impetus for leaving a product from the market (elimination) or, conversely, for introducing it to the market (innovation) can be an analysis of the life cycle and structure of the production program. In the foreground here is the recognition and assessment of enterprise risks.

Changes in a product (variation) require an in-depth analysis of the market structure, i.e. its segmentation.

The life cycle concept helps to understand the dynamics of the product and market and allows you to identify the main marketing tasks in each phase of the cycle and develop appropriate marketing strategies.

Analysis of the structure of the production program includes:

a) Analysis of age structure.

This type of analysis is especially recommended for enterprises with a wide and insufficiently visible production program consisting of goods that can become obsolete relatively quickly (chemical enterprises, cosmetic and household chemicals, as well as food products). The analysis of the age structure of the production program is based on an analysis of the life cycle of individual products and explains at what stage these products are located.

Under an ideal age structure, the majority of the production program consists of goods with relatively high life expectancy.

Analysis of the age structure of the production program allows us to see the trend in changes in the turnover and profitability of the enterprise. It is carried out by comparing the life cycles of various products present in the production program with each other. However, this analysis can only be applied to products with similar life cycle curves and approximately the same service life.

b) Analysis of the turnover structure.

The correct age structure is only the first condition for the profitability of a production program in the long term. Another important source for creating a profitable program is the analysis of the turnover (sales) structure.

To carry out this analysis, a “turnover profile” is created, which indicates the main assortment, i.e. for those products that generate the largest portion of revenue. For example, in the consumer goods trade, there is a tendency for 20% of the assortment to account for 80% of the turnover. However, it is not recommended to carry out a sharp “cleaning” of the assortment, since additional assortment often attracts new customers and prevents the outflow of existing ones, since it is more convenient for them to buy different products in one store.

If we are talking about manufacturers, then the “turnover profile” provides them with the opportunity to see the distribution of production capacity between individual products and assess how a decrease in turnover for one of the products or a group of products will affect production, what costs will increase, what capacities will be underutilized, etc. .

c) Analysis of the client structure.

From the distribution of turnover and sales volumes for the various products in the program, it becomes clear which products generate the most revenue. However, it is not clear from the analysis how the total turnover and sales volume are distributed among customers or orders. But such information is as important for the formation of an enterprise strategy and risk assessment as the scale of concentration of turnover on individual products.

A “customer profile” is compiled, which shows what percentage of turnover falls on what percentage of customers (the same principle is used as when compiling a “turnover profile”). Using this profile, you can measure the company's dependence on individual clients, predict potential customers, as well as possible changes in profit margins if the company loses this client.

Example 10: Whirlpool, which manufactures and sells home appliances worldwide, constantly monitors consumers and their behavior. The company's in-house anthropologists go to people's homes, observe how they use household appliances, and interview household members. As a result of such studies, it was discovered that in families where both husband and wife work, washing has ceased to be the prerogative of the woman. Armed with this discovery, marketing specialists decided to give new models of washing machines the functions of automatically determining the modes of washing and drying clothes, in order to alleviate the “plight” of substitute wives and mothers of men and children.

d) Analysis of the profitability structure.

When analyzing a production program, the main parameter is turnover, however, even the assortment that is optimal in terms of age, turnover and client profile does not necessarily demonstrate the highest profitability. That is why the analysis of turnover by product must be supplemented with an analysis of the profitability structure.

In essence, income is profit from the sale of products.

A profitability profile is compiled - i.e. income from each product group is indicated. Then you need to find out how income will change if the type and quantity of products varies, i.e. determine how revenue and costs will change.

If the income from any product group is small, it may be worth abandoning this product and discontinuing it.

To make a decision either to continue production of a product, or to discontinue it and exclude it from the range, you can conduct a functional cost analysis, the so-called ABC analysis.

ABC analysis is a method of structural analysis based on ranking objects according to selected indicators.

The objects in the analysis can be: individual products or product groups, individual orders and customers, regions and sales channels. The following indicators are used: sales volume, profit and cost coverage.

The ABC analysis technique involves grouping ranked objects in terms of their weight to form a selected indicator. The first group, group A, is characterized by a significant contribution to the analyzed indicator, group B has an average contribution, and group C has a very insignificant contribution. Products included in group C may be excluded from the range if this does not affect other interests of the company (range, customers, connections between products). ABC sequence? analysis is presented in Appendix A.

Sooner or later, most products become obsolete. The effect of scientific and technological progress, changes in general culture and consumer culture, social attitudes, consumer psychology, etc. is manifested. Environmental requirements are being tightened and state standards are being improved. Competition is a strong motivator for product innovation.

The development of a new product is a necessary condition for maintaining a company’s competitiveness in the market and should become as commonplace in the enterprise as the search for new markets and new ways to sell goods. In modern developed markets, more and more new products are appearing and the time of the so-called innovation cycles, or the time to develop and bring a product to market, is decreasing. If a company strives for strategic sustainability, then it needs to join this “innovation race.”

Product policy? This is a set of basic decisions and targeted actions to introduce a new product to the market or preserve an old one, as well as to change the assortment.

A company can set itself the goal of creating a new market by releasing a qualitatively new product, causing a new need or significantly modifying an old one. A company can limit itself to modernization, updating an old product if the consumer is “tired of its appearance and needs a slight change in its properties. The entry of a new product onto the market is an important event, both for the company itself and for its competitors. It is associated with knowledge of the market. How to create a product with given useful properties and corresponding technical parameters? How much will it cost to create it, how long will it take to pay off the investment, what profit can the company expect? Does the consumer need the product, who will buy it, how many people will buy it?

Example 11. A company that is ready to introduce a new product to the market must determine the most advantageous moment for its “first ball”. Experience shows that market pioneers reap the greatest benefits. It is clear that pioneering companies such as Amazon.com, Cisco, Coca-Cola, eBay, Eastman Kodak, Hallmark and Microsoft developed a strategy to gain market dominance before entering the market with new products.

However, innovation can be very risky. According to experts, the Ford company lost, according to experts, about $350 million on its ill-fated Edzel model. The failure of its synthetic corfam leather cost the DuPont corporation about $100 million. Xerox's attempt to enter the computer market turned out to be a disaster. Investments in the creation of the French Concorde airliner will never pay off. In the consumer packaged goods market, new products from such experienced companies as Campbell, Gillette, Lever Brothers, General Foods, Bristol-Myers, and others have repeatedly failed.

According to one study, 40% of all proposed new products fail in the consumer goods market, 20% in the industrial goods market, and 18% in the services market. The failure rate of new consumer products is particularly alarming.

Product development begins with the search, evaluation and selection of promising ideas, their testing:

Technological development consists of designing and constructing the product itself, creating the necessary equipment and production capacity for its mass production;

Economic development comes down to justifying investments and forecasting their effectiveness, calculating cost and selling price, forecasting profit and profitability;

Marketing development begins at the stage of preliminary consideration and selection of ideas for conducting market research, on the basis of which its capacity is determined and demand is predicted.

Studying and forecasting the main parameters of the market allows us to get closer to making a decision on introducing a product to the market. However, before this it is necessary to carry out a number of marketing operations:

Product certification and assessment of its competitiveness,

Distribute goods;

Conduct test marketing;

Launch an advertising campaign and other activities to promote the product. This is associated with significant risk, since the success of a new product puts the company among the leaders, while the failure of a new product can push it into the ranks of market outsiders.

There are different degrees of newness of a product. The following classification is often used:

Fundamentally new product (pioneer product)? a product that has no analogues on the market, created as a result of fundamentally new discoveries and inventions; it satisfies a qualitatively new need or raises an old one to a new qualitative level;

A radically improved product? a product that has qualitative differences from analogues on the market; it pushes the boundaries of needs, expands and improves the consumer properties of the product;

Modified product? a product that was previously presented on the market, but has undergone unprincipled, often cosmetic, improvement (sometimes only the packaging changes);

Is the product new to the market? a product new only to a given market; an old product that has found a new application.

The process of updating a product is called modernization. Changing the properties of a product, giving it new ones is called modification. If the old product is not discontinued from production and sale, then the appearance of a new or modernized one is called product differentiation.

Evaluating and reviewing the entire assortment, planning and assortment management are an integral part of marketing.

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2.5. Product policy development

The product policy of an enterprise is determined based on the technological capabilities of production, the opinions of buyers about the expected benefits of a given product, and the availability of similar products on the market.
When forming a program for introducing a product to the market, it is necessary to make the following decisions:
- develop a multi-attribute product model;
- determine an approach to the formation of a product’s image, primarily in terms of “price-quality”;
- determine the planned relative usefulness of the product in comparison with analogues or substitutes;
- assess the life phase of the product in relation to other technologies;
- formulate an assortment policy, as well as the degree of product differentiation;
- develop a brand policy;
- position the product or brand.
Let us reveal in more detail the content of decisions in the field of product policy
Development of a multi-attribute product model
Attribute- a property of a product that is a certain benefit, usefulness in the eyes of a certain category (segment) of consumers or buyers.
A product model is developed after a thorough analysis of the advantages and disadvantages that it has in the eyes of potential consumers and buyers. For example, Table 2.6 shows how the consumer market (public) and the professional market (retail) value frozen vegetables. After this, the core of the product, basic benefits and supporting benefits are formed for each target group of buyers and consumers.
Formation of product image
The image of a product is an important attribute that must be planned simultaneously with the development of a marketing concept and taken into account when positioning the product. Most often, when developing a product image, the position of the product in relation to competitors in the “price-quality” coordinate system is established. Of course, the concept of image is broader than positioning in “price-quality” coordinates, therefore, when developing reinforcement for the core of the product, it is necessary to formulate other requirements that correspond to the desired image of the product.

Table 2.6. Rating of product "Frozen vegetables"

Planning the relative utility of a product
Relative utility is the extent to which the product in question is superior in its attributes to competitors' products. If previously only a competition analysis was carried out in order to identify the main competitor and develop competitive advantages, now it is necessary to rank the most important attributes and quantitatively correlate them with the product offered by the competitor. Essentially, the overall utility of a product determines its competitiveness.
Product life phase assessment
Knowledge of the life phase of a product is necessary to resolve the issue of the product’s prospects in relation to competing products, forecast sales volumes, and select the most effective marketing tools.
The stages of product life are described in detail in the literature [11, 17].
The most problematic issue remains the choice of criteria for assessing the life phase of a product. Thus, the sales volume of a given product, as the most common criterion, can be misleading, since trends in sales volumes are often caused by the conditions of a particular market. Therefore, sometimes the life phase of a product for a market of interest is assessed, for example, through indicators of public awareness of the product, their attitude towards the product, etc.
For some products, it is advisable to assess the life phase by comparing the level of technology.
Analysis of the perfection of technologies and the benefits they provide to consumers allows us to predict the phase of a product’s life.
Assortment policy
The enterprise's policy regarding the range (nomenclature) of manufactured products should be based on the following considerations:
- technological capabilities of the enterprise;
- market needs for assortment or product differentiation;
- problems in positioning;
- the need to gain a competitive advantage;
- the need to release leading products, bait products, complementary products;
- achieving turnover that ensures break-even activity of the enterprise.
More details about decisions in the field of assortment policy of enterprises can be found in the literature. Brand policy
Product (trade) brand- any graphic image that allows you to distinguish the goods of a particular enterprise from the goods of other enterprises.
A registered trademark is accompanied by the symbol O, and a trademark that has not yet been submitted for registration is accompanied by the symbol O.
In general, decisions in the field of brand policy can be as follows:
- use for a product of its generic product (for example, frozen vegetables);
- use of a single trademark for all goods (monomark policy: Kodak, Bosch, etc.)
- use of a multi-brand policy (washing powders from Procter and Gamble: Ariel, Tide, etc.).
Brand names must perform memory functions, sales functions, image formation functions, positioning functions, and advertising functions.
Product packaging
Product packaging solves three problems:
1) prevents damage to goods during transportation (transport packaging), storage and packaging into parts convenient for the buyer;
2) helps the buyer obtain information about the product;
3) serves as an advertisement for a product and a company.
For example, food packaging must contain the following mandatory information:
- trademark;
- Product name;
- Net weight);
- ingredients in quantity;
- calorie content;
- storage conditions;
- release date with shelf life or maximum use date;
- full name of the manufacturer, its address and telephone number;
- barcode (or country of origin).
In addition to the required information, it is recommended to place on the packaging:
- cooking methods;
- recipes;
- slogan (slogan);
- signs indicating environmental friendliness, naturalness of the starting components, dietary properties, etc.
The packaging being developed must be different from the packaging of competitors.

2.6.
Development of pricing policy
"Price is the lifeblood of marketing" F. Kotler
The formation of prices for products brought to the market occurs simultaneously in several parallel ways, so that at a later moment a final decision can be made on the price for a specific product.

A diagram of the phased development of a pricing policy is presented in Fig. 2.8.

Fig.2.8. The sequence of developing a pricing policy when introducing a product to the market.
Formation of pricing policy goals
By setting the price of a product, an enterprise can achieve the following goals:
- capture the intended market share;
- increase demand for products;
- maximize current profit;
- maximize turnover;
When realizing your goals, you must carefully weigh the capabilities of your enterprise in relation to the strength of competitors, as well as the size of potential demand in each market segment. If there is no potential demand, then the only method of gaining market share is to displace a competitor. The main weapon in this case is low prices in relation to the prices of competitors. In price competition, the financially stronger competitor wins, having the ability to keep prices low for a long time (for example, at the expense of other markets or goods). All other things being equal, the one whose product has a lower cost will win (see Fig. 2.4).
Maximizing current profits involves searching for the optimal state between price, sales volumes and costs. Table 2.7 shows an example of the implementation of this model.

Table 2.7. Determination of price and conditions for maximizing profit

The example shows that the company will receive the greatest profit with a sales volume of 800 units and a price of 15 deniers. units.
If we set goals for maximizing turnover, then in this example the price will be equal to 14 den. units with a turnover of 900 units.
Note. In this case, turnover refers to sales volume for a certain period of time (month, quarter, year), i.e.
trade turnover, and not commodity turnover, calculated by the time during which inventory is turned over.
To calculate the selling price, the following pricing methods have been used in practice:
- cost plus profit method;
- competitor-oriented method;
- consumer cost method.
An example of calculating the price “cost plus profit” [2]:
1. Variable (direct) costs
a) for materials - 9000
b) for labor - 1000
Total - 10000
2. Fixed costs (indirect and overhead) - 3800
3. Total total costs - 13,800
4. Planned profit (20%) - 2760
5. Planned gross income - 16,560
6. Production volume - 1000
7. Unit price: 16560 / 1000 = 16.5 cu.
The application of the considered method allows you to control the break-even activity of the enterprise through prices.
The pricing method based on competitors' prices assumes the existing demand for a given product. When setting a price for a product being launched on the market, it is necessary to take into account the reaction of competitors to price offers.
For example, at prices lower than prices for similar products of competitors, the latter may:
b) leave the price unchanged if there is no price elasticity of demand or the difference in prices is not so noticeable.
When setting a price higher than the prices of competitors' products, it is necessary to include in the product additional value that competitors missed, but is very necessary for the buyer. For example, refrigerators are supplied to stores along with quick-frozen vegetables.
The method for determining the price of a product in relation to the price of a competitor is given in the guidelines [14].
Finally, the customer value-based pricing method is based on the study of consumer price perception. This method is used for unique, expensive goods, goods requiring maintenance, when there are no clear criteria for the consumer properties of the product. The more unique the product, the wider the range of sensitivity to the prices set.
Setting prices using the consumer value method involves studying the buyer’s solvency, level of need for a given product, and purchasing behavior.
Prices for products (goods) are set by parallel calculation using the above methods, however, in markets with strong competition, priority remains with market-oriented methods (competitors and buyers). In this case, it is necessary to revise the cost structure:
cost = price - profit
The final stage of pricing is the development of a pricing policy based on the immediate objectives of the enterprise.
The following pricing policies are distinguished:
- the policy of “cream skimming”, when a new product is introduced to the market at high prices, but due to its usefulness, it is in high demand;
- a policy of low prices in relation to the prices of competitors, which allows you to penetrate the market, increase market share, and create entry barriers for new competitors.
When implementing a low price policy, you need to remember that many people associate low prices with low quality goods. Therefore, some buyers may switch to a competitor who sells a similar product at higher prices (brand fee).

A graphical illustration of pricing policies is shown in Figure 2.9.

Fig.2.9. Graphic illustration of enterprise pricing policy options
2.7.
Sales volumes are calculated based on the expected price level for manufactured products, their quantity in physical measurement (tons, pieces, liters, etc.), as well as taking into account the seasonality of demand.
The choice of distribution channels depends on the characteristics of the product and the goals of the enterprise. In particular, if an enterprise intends to sell products (consumer goods) on the local market, then the following can be considered as potential sales channels:
- organizing a network of branded stores;
- organizing an agent network for supplying products to existing retail enterprises;
- organize sales through independent wholesale intermediaries.
In Fig. 2.10 shows the options for organizing sales of the manufacturing enterprise "Cryofood". Possible trade margins to the selling price of the goods are indicated in brackets.

To evaluate a channel, you first need to consider:
- channel power, i.e. What volume of goods can this channel pass through (sell, resell)?
- what price level will be acceptable for the end consumer from the point of view of competitors' prices and the psychological perception of this price by buyers?
- what investments are necessary for the operation of a channel of the required power?
- what are the terms of delivery and mutual settlements with each type of buyer (intermediary)?
The result of the analysis should be the possible sales volume of goods from marketing activities and forecasting the time to achieve three financial states of the enterprise:
- time to cover direct costs;
- time to reach the break-even point
- time to achieve the planned profit (or turnover profitability indicator).
Let's analyze the possibilities of each sales option (see Fig. 2.10).
Option 1. Organizing a network of branded stores
The initial basis for the analysis is to determine the number of retail outlets capable of selling the volume of products that will be produced at the enterprise, minus the volume of goods shipped to wholesalers and existing retail stores.
To organize your own retail trade, you need to invest in renting or purchasing premises, purchasing equipment, hiring and training staff.
The store's turnover must cover current costs and ensure the return of borrowed funds.
Option 2. Organization of sales through existing retail trade
First of all, it is necessary to analyze the number of stores in St. Petersburg that are technically suitable for selling BZO (Table 2.7), as well as the number of wholesale enterprises (local and regional) potentially interested in launching such products.

Table 2.7. Analysis of retail opportunities in St. Petersburg

Depending on the saturation of the market with a product and its demand, retail sales can be organized through its own agent network, through independent sales agents, as well as through the sales department of the enterprise itself.
The functions of sales agents include:
- searching for stores willing to take goods;
- conducting negotiations within the competence provided to them;
- monitoring the availability of goods in the store’s sales area;
- control over the transfer of money for the supplied goods;
- control over claims from buyers;
- monitoring the timely delivery of goods to the store.
The agent may also be entrusted with the collection of small amounts and forwarding of goods.
When designing an agent network, the following must be considered:
- assigning a certain number of stores to each agent;
- distribution between agents of city districts or types of trading enterprises;
- terms of payment for agents.
Independent sales agents purchase goods from the company at their own expense and deliver them to stores themselves. However, for a large manufacturer of this type, intermediaries are undesirable due to their small volumes of purchases and the inability to control prices and quality of work.
Option 3. Sales through wholesale companies
Wholesale intermediaries must be divided, first of all, into local ones, who supply goods to stores in St. Petersburg, and regional ones, who supply goods to other regions. Regional intermediaries can also be out-of-town wholesale companies that make purchases in St. Petersburg through their representatives.
It is necessary to take into account both the positive aspects of working with wholesale companies (the possibility of selling goods in large quantities), and the dangers associated with their unpredictability regarding the regularity of purchases, the possibility of working with competitors, and unsatisfactory financial discipline.
Before making the final choice of sales options, it should be remembered that such decisions are strategic, long-term in nature and cannot be changed quickly. The results of the analysis can be summarized in a table (Table 2.8).

Table 2.8 Evaluation of sales options

2.8.
Development of an advertising campaign and product promotion plan
The goals of developing an advertising campaign plan for a new enterprise entering the market with its products are as follows:
- inform the public about the enterprise under construction, its features, planned products, time to enter the market;
- outline a business advertising strategy: amounts of funding, channels, advertising means, timing, frequency;
- name and volume of advertising representation materials (business cards, booklets, branded folders, etc.);
- develop an advertising slogan;
- develop a corporate identity (first of all, choose the main color or combination of colors).

An advertising campaign plan is developed approximately a year before the launch of the enterprise. First of all, issues such as the development of a trademark and corporate identity are resolved, then approximately six months before the start of activity, image advertising and public relations are carried out, and 1-2 months before, business advertising is carried out, the intensity of which increases by the time sales activities begin. The ratio of volumes of image and business advertising in preparation for an enterprise’s entry into the market is shown in Fig. 2.11.

Fig.2.11. The volume of image advertising in relation to business
It is advisable to carry out work to draw up a calendar plan for an advertising campaign, which indicates detailed activities, deadlines and amounts of funding.
An important and responsible moment is the choice of the contractor for advertising events. For example, when choosing an advertising agency, you need to keep in mind the following criteria:
- experience in the advertising services market in the profile of this business (for which companies the work was performed);
- availability of its own material base, its technical level;
- complexity of services performed or provided;
- the agency’s interest in the proposed work;
- level of creativity, ability to generate new ideas (examples);
- price level for services and methods of mutual settlements;
- deadlines for order fulfillment;
- guarantees of quality of execution;
- level of connections with advertising channels, printing houses, publishing houses, other manufacturers of advertising media, owners of advertising media.

A system for monitoring the progress of work and evaluating finished materials must be developed.
2.9.
From Table 2.9 it can be seen that depending on what stage of its activity the enterprise is at, the functions and tasks of marketing are different.
Therefore, the marketing management structure must be adapted to the real tasks of the current stage. Based on the necessary condition for rational expenditure of resources on marketing, it is important to distribute tasks that can be performed by full-time employees of the enterprise or attracted consulting firms (scientific consultants). From the above it follows that if an enterprise is focused on solving marketing problems on its own, then the organizational structure should consist of groups of employees performing the main marketing functions. In this case, the company incurs large fixed costs. To reduce them, an enterprise can carry out research for other interested enterprises.

Table 16 Marketing functions of a new enterprise

In this case, the staff must be sufficiently qualified.
The management structure may be structured differently if the company relies on third-party marketing specialists. This leads to the minimization of full-time marketing department employees.
As a rule, strategic goals are solved by involving third-party specialists, and operational goals are solved in-house.
Figure 2.13 shows an example of the organizational structure of a consumer goods manufacturer.
When developing a detailed study of the organizational structure of marketing, it is necessary to evaluate the feasibility of focusing on specializing marketing functions by market, by product, and by consumers.
If an enterprise operates in several regional markets, then functions can be distributed between central management and regional offices.
Specialists from the central marketing department develop strategic problems (new markets and products, developing a brand image, improving the skills of employees, pricing strategy, etc.).
Regional representative offices may not have a separate structure for marketing, and these functions are performed by one of the employees or directly by the head of the representative office.

The product policy of an enterprise is developed based on taking into account a number of factors: the state of demand and customer expectations, technological production capabilities, the availability of analogues of goods on the proposed sales market, etc.

When formulating a product policy, it is necessary to take into account that goods may differ in type and periods of use, functionality, reliability, ease of use, durability, maintenance, warranty, etc.

When developing a product policy, the main problems are:

innovation (creating new products or updating existing ones);

ensuring the quantity and competitiveness of goods;

creation and optimization of product range;

questions about trademarks;

creating effective packaging;

product life cycle analysis and management;

positioning of products on the market.

Market success is the main criterion for assessing the activities of enterprises, and their market opportunities are predetermined by a properly developed and consistently implemented product policy. In Fig. 1.1 shows a diagram of options for modifying goods within the framework of the enterprise’s product policy, ensuring the main market success of the enterprise’s product policy. 6

Rice. 1.1. Alternative options for modifying goods within the framework of the enterprise's product policy

In modern conditions, in order for an enterprise to survive and develop, to take a stable position in the market, it is necessary to pursue a policy of forming an assortment policy based on the use of the product life cycle.

The process of forming an assortment of goods is preceded by the ability to translate existing and/or potential technical and material capabilities into products that are profitable and have consumer value that satisfies the buyer.

A well-developed product policy plan allows a company to accurately identify potential opportunities, develop appropriate marketing programs, consolidate a range of products, maintain successful ones for as long as possible, and eliminate late goods.

Product policy presupposes a certain set of actions or pre-thought-out methods and principles of activity, thanks to which the continuity and purposefulness of measures for the formation and management of the range of goods is ensured. The absence of such a set of actions leads to instability of the enterprise’s assortment, failures, and exposure of the assortment to excessive influence of random or transient market factors. Current management decisions in such cases are often half-hearted, ill-founded, based on intuition rather than on calculations that take into account long-term interests.

The role of the leadership in the formation of the assortment is to skillfully combine the resources of the enterprise with external factors and opportunities, to develop and implement a product policy that would ensure the stable position of the enterprise through increased sales of highly effective competitive goods.

A well-thought-out product policy not only allows you to optimize the process of updating the assortment, but also serves as a kind of guideline for the general direction of actions for the management of the enterprise, allowing you to correct current situations.

The policy also includes conducting statistical research from the idea of ​​creating a new product to its sales and maintenance. Moreover, the object of research is not the product as such, but the consumer with his requests in relation to this product.

Enterprises implementing a product policy must pursue the goal of producing goods that are competitive and of appropriate quality.

To do this, it is necessary not only to determine the assessment of the competitiveness of the product, to improve the quality of products as one of the forms of competition to gain and maintain positions in the market, but also to adhere to strategies that allow achieving a competitive position.

The absence of a general, strategic course of action for an enterprise, without which there is no long-term product policy, is fraught with incorrect decisions, dissipation of forces and resources, and refusal to launch products into production at a time when everything is ready for their serial or mass production. Naturally, errors of this kind are costly for commodity producers.

1.2. Stages of developing a product policy plan for an enterprise

Product policy is not only the targeted formation and management of an assortment, but also taking into account internal and external factors influencing the product, its creation, production, promotion to the market and sale, legal support for such activities, pricing as a means of achieving the strategic goals of product policy, etc. .

The development of a product policy plan for an enterprise consists of several main interconnected stages.

1. Setting goals and objectives.

The main goals and objectives in the field of product policy of the enterprise are determined. The goals of product policy may concern such issues as: the range of goods and services produced; the pace of product renewal in general and for its individual types; launching fundamentally new products onto the market; changes in the ratio of new and old goods; introduction of new forms of customer service; increasing the competitiveness of products, etc. In a marketing plan, it is necessary to formulate the goals and objectives of both the product policy of the enterprise as a whole and for individual products or groups of products.

2. Selection of product strategies.

A strategic approach is required to solve the problems of commodity policy. Any decision in this area must be made taking into account the long-term goals of the enterprise. The developed product strategies during the period (3 - 5 years) for which the marketing plan is drawn up, as a rule, should remain practically unchanged. In the marketing plan, it is necessary to formulate and describe the strategies that the enterprise will use in its product policy. Product strategies must be consistent with the main strategies and strategies of the individual marketing mix tools.

3. Choice of product policy concept.

3.1. Assortment concept.

The assortment, or product range, is the entire set of products produced by the enterprise.

The product range is a dynamic set of product items (models, brands) that are in potential demand in the market and ensure the survival of the enterprise in the long term. The order of formation of the assortment is presented in Fig. 1.2.

Rice. 1.2. The procedure for forming the assortment

From the point of view of product preferences, the one that over a long period ensures that profits exceed financial needs in order to maintain the competitiveness of the company is important. An important role in assessing a company’s product strategy is played by product ratings. Product rating is understood as the place occupied by a particular product position in the ranked series of all positions in the product range.

The assortment concept is expressed in the form of a system of indicators that characterize the possibilities for optimal development of the production range of a given type of product. The purpose of the assortment concept is to orient the enterprise towards the production of goods that best correspond to the structure and variety of demand of specific customers.

The assortment concept should reflect the following points:

characterization of current and future customer needs, analysis of ways to use these products and features of purchasing behavior in the relevant target markets;

assessment of existing competitors' products and analysis of the competitiveness of goods produced by the enterprise;

analysis of the possibilities of producing new or improved products, taking into account issues of price, cost and profitability;

resolving the following issues: what products should be included in the range; what should be the width and depth of the assortment; how and in what direction the assortment will change over time;

what batches will be produced;

a list of marketing research and methods for conducting it necessary for successful assortment management;

methods of assortment management and control.

The assortment concept is one of the important decisions in terms of marketing, which must be taken very seriously, since correcting errors in the future will be costly for the enterprise.

3.2. New product concept.

A new product concept is a description of the physical and perceived final characteristics of a product and the set of benefits it promises to a specific group of users. The concept of a new product should reflect the following points.

basic requirements for a new product, which it must satisfy, taking into account forecasts of future consumer requirements and their needs;

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Federal Agency for Education of the Russian Federation

Volgograd State Technical University

Department of Management, Marketing and Production Organization

Methodological manual "Marketing"

For specialty 080507 “Organization Management”

Volgograd, 2004

UDC 339.13 (075.8)

Reviewers

Associate Professor, Candidate of Sciences economy Sciences, Head of the Department of Active-Passive Operations of JSCB "KOR" T.Ya. Kholopenkova,

Head Department of Economics and Management, VPI, Associate Professor, Candidate of Economic Sciences. L.I. Nasonova

Published by decision of the editorial and publishing council of Volgograd State Technical University

Methodological manual “Marketing” / Comp. Yu.I. Osadshiy, V.N. Molodozhenova, T.P. Ostapenko, E.V. Samsonova / Volgograd. state those. univ. – Volgograd, 2004.

The principles and methods of carrying out marketing activities are outlined. The methodological manual provides a brief introduction to the variety of approaches, ideas, and solutions used by domestic and foreign organizations. The features of innovation marketing are considered.

© Volgograd State

Technical University, 2004

1. Basic concepts of marketing 4

2. Marketing management 7

3. Marketing research 12

4. Market segmentation 18

5. Development of product policy 22

6. Objectives and pricing policy 31

7. Planning and organization of product distribution 39

8. Demand generation and sales promotion systems 44

9. Features of marketing innovations of scientific and technical organizations and manufacturing enterprises 47

10. Marketing environment of an innovative company 61

11. Marketing strategy for innovation 69

Basic Marketing Concepts

Marketing is a type of human activity aimed at satisfying the needs and wants of people through exchange.

Need is a feeling of lack of something felt by a person; it is something that comes from human nature. Needs can be physiological (clothing, food, etc.), social (communication, self-expression, etc.), personal (gaining knowledge)

A need is a need that has taken a specific form in connection with the cultural level of development of society and the personality of the individual.

Request is a need backed by purchasing power

Exchange is the act of receiving a desired object from someone by offering something in return.

A product is everything that is offered to the market in order to attract attention, purchase and use.

A market is a collection of existing and potential buyers of a product.

Marketing Principles:

1. Orientation of the final production results to the real requirements and wishes of consumers.

2. Knowledge and comprehensive study of the market, use of market information in the process of developing and making scientific, technical, production and economic decisions.

3. Maximum adaptation of production to market requirements. It is necessary to produce what is sold, and not sell what is produced.

4. Influence the market and customer demand through all available means.

5. Organization of delivery of goods in such quantities, at such a time and place that would most fully suit the end consumer.

6. Conquering the market with goods of the highest quality and thereby gaining an advantage over competitors.

7. Providing targeted management of the entire process of the enterprise’s activities, i.e. development, production, sales and service provision.

8. The need to divide the market into segments.

9. Providing assistance to resellers.

10. Orientation of marketing strategies for the future, etc.

Marketing concepts are based on identifying the needs and real consumer assessments of the range and quality of goods and recognizing the need to adapt production and sales to these needs and assessments, better and more efficiently than competitors do.

There are 4 main concepts:

1. The concept of production improvement. The application of this concept allows the manufacturer to reduce production costs by increasing production volumes.

2. The concept of product improvement. A manufacturer will make more profit if it produces a higher quality product than its competitors.

3. The concept of sales promotion. The manufacturer must make some effort, use advertising and sales promotion to sell his product.

4.The modern marketing concept is built on meeting the needs and demands of customers

5. The concept of social and ethical marketing is built on meeting the needs and requirements of customers, taking into account the needs of society.

Main types of marketing:

1. Demarketing - excessive demand. The manufacturer's task is to reduce the demand for goods and services, which cannot be satisfied due to an insufficient level of production capabilities, limited commodity resources and raw materials.

2. Conversion marketing – negative demand, when the majority of market segments reject a given product or service.

3. Counteraction marketing - irrational demand,

implemented to ensure the well-being of consumers who find certain goods and services inappropriate for personal use.

4. Promotional marketing - lack of demand, typical for goods entering the market for the first time.

5. Developmental marketing - latent demand, i.e. The task of marketing is to transform potential demand into actual demand.

6. Supportive marketing - full demand. This type of marketing is typical for products that have been on the market for a long time and bring profit to the manufacturer.

7. Remarketing - falling demand.

8. Synchromarketing is an irregular demand, it is focused on conditions when demand exceeds production capacity or vice versa, when production volume turned out to be greater than market needs (seasonal marketing).

Marketing functions:

1. Analytical function, it includes the study of the market, consumers, corporate structure of the market, study of the product structure of the market.

2. Production function, which includes the development of new technologies, organization of production of new goods, logistics, management of product quality and competitiveness, and implementation of a targeted pricing policy.

3. Sales function - organization of a product distribution system, a service system, demand generation and sales promotion (FOSSTIS)

4. Management and control function - organization of strategic and operational planning. Information support for the marketing management process, organization of control of marketing activities.

Marketing Management

Marketing management is the analysis, planning and implementation of activities designed to establish, strengthen and maintain profitable exchanges with customers in order to achieve certain company goals (profit making, sales growth, etc.).

The management process includes:

1) Analysis of market opportunities. To identify the market in which the product will be sold, you can use several methods: deeper penetration into the market, expanding the boundaries of the market, product development, diversification.

In addition to searching for a product market, it includes assessing marketing opportunities. A marketing opportunity is an attractive direction of marketing efforts in which a firm can achieve a competitive advantage. The marketing opportunity must be consistent with the firm's goals and resources.

2) Selection of target markets includes an assessment of existing sales volume and a forecast of the future. If the forecast is successful, then market segmentation is carried out. When the target segment is selected, product positioning is carried out, i.e. providing a product with a different, desirable place in the market and in the minds of target consumers.

3) Development of a marketing mix

The marketing mix is ​​a set of controllable marketing variables that a firm uses together in an effort to elicit the desired response from its target market.

Marketing mix: Product, Price, Place, Promotion.

4) Organization and control of marketing activities. The organization includes the development of a planning system - ensuring strategic planning i.e. identifying the most attractive products for customers in the future and ensuring operational planning i.e. development of plans for each individual production or product of the company.

An important point in organizing marketing activities is the organizational system - the marketing service. When building the structure of a marketing service, a company can use several methods: functional organization, organization on a geographical basis, organization on a product principle, organization on a market principle, organization on a product-market principle.

The control system consists of 3 types:

1 . monitoring the implementation of annual plans;

2. profitability control;

3. monitoring the execution of strategic guidelines.

Development of a marketing mix

Product - at this stage, the company’s product policy is being developed, which includes assessing the quality of the competitiveness of products, consumer tastes and developing a product range; it is also important to assess the basic properties of the product and its environment (ease of purchase, reliability of delivery, design, price, brand and after-sales service ).

When developing a product, it is necessary to take into account fluctuations in the volume and duration of production of a particular product. Fluctuations in the volume of production and sales of products are the life cycle of a product. The concept of the product life cycle is based on the fact that sooner or later any product is forced out of the market by another cheaper or more advanced product. The product life cycle concept can be applied to a product type, type, model, brand. The classic product life cycle curve has the following form, shown in Figure 1.1.

Volume of sales

1 2 4 5 time

Fig. 2.1 Product life cycle curve

1. Stage: market introduction phase, the goal is to create a market for a new product.

2. Stage is the growth phase, the product is recognized by customers, demand rapidly increases, sales volume increases; and therefore profit.

3. The stage is the maturity phase, the saturation of the market with this product increases and the product that was considered a new product becomes traditional, because A large number of buyers know about it.

4. Stage is the saturation phase, the volume of sales of goods falls, and therefore the volume of profit falls.

5. Stage is the decline phase, the consumer loses interest in the product, demand for it falls and the manufacturer has two ways out of this situation: the first is to revive the product by changing its position in the market; the second is the cessation of production of goods. Different states of the product life cycle curve.

Product policy is the development of private strategies for assessing the range of products and their movement to consumers of the relevant markets.

Product policy is an integral part of a long-term production development plan, including a preliminary selection of a product range, some of which will later be included in the production portfolio.

The development of a product policy provides for:

• - a comprehensive analysis of the capabilities of existing markets from the position of ensuring the successful implementation of the planned product range, i.e. assessment of sales markets;
• - assessment of the level of competitiveness of your own goods and similar goods produced by competitors;
• - selection of the most favorable markets and establishment for each of them of the corresponding product range, sales volume and price;
• - revenue analysis and development of a plan for a promising product range, taking into account its competitiveness;
• - studying the possibility of non-price competition.

Analysis of current markets. To assess sales markets, it is necessary to determine the place of the product in various markets based on the solvency of demand for the corresponding product, as well as the structure of buyers according to the solvent demand for each of the analyzed markets and the list of competitors.

Market analysis allows you to:

• - establish the capacity of the market and its individual segments;
• - assess market and forecast opportunities for product sales;
• - determine the behavior of buyers and their solvency;
• - identify methods of production and marketing activities of competitors;
• - assess the impact of a new product on customers and competitors;
• - establish a potential range of products.

The choice of product policy is greatly influenced by the assessment of the possibility of selling a product not only on the local market, but also in the regions. For each market and its segments, capacity is determined - the planned and actual share of the enterprise supplying the corresponding markets with goods.

Purposeful implementation of production and sales activities, i.e. The implementation of the enterprise's product policy based on market research and the adaptation of product production to it is ensured by an independent structural unit of the enterprise - the marketing service. Its activities focus on solving the following interrelated tasks:

• - market analysis, study of its condition and dynamics; research into the behavior of consumers and product suppliers; analysis of the activities of competitors and intermediaries; market segmentation, identification of target segments, subsegments and buyers; forecasting market conditions;
• - development of proposals for the release of new products and design of their commercial characteristics; management of the range of products; formation of brand policy; increasing the competitiveness of goods;
• - formation of strategy and tactics for price changes; calculation of discounts and surcharges on prices; marketing cost calculation;
• - building product distribution channels and organizing product distribution; management of wholesale and retail sales; planning of trade turnover and organization of goods distribution;
• - sales promotion, including advertising, personal selling, short-term sales promotion, public relations;
• - organization, planning and control of marketing.

Formation of a competition strategy. A clear understanding of the marketing goals of the enterprise allows us to identify the most significant aspects of the activities of competitors that impede the timely and complete implementation of the planned work. Knowledge of the features of regulation of competitive relations by the Law of the Russian Federation “On Competition and Restriction of Monopoly Activities in Product Markets” and taking into account the actual activities of competitors is a necessary condition for proper orientation in the marketing environment. Indeed, no enterprise can achieve superiority over competitors in all commercial characteristics of a product and means of promoting it on the market. It is necessary to select priorities and develop a strategy that is most consistent with the trends in the development of the market situation and best uses the strengths of the enterprise.

A generalization of competition practice allows us to identify five basic strategies on the basis of which competitive relations between enterprises are implemented (Fig.).

Rice. Basic competition strategies and competitive advantages

Strategy for reducing production costs. The incentive to use a strategy to reduce product costs is significant economies of scale and attracting a large number of consumers for whom price is a determining factor in their purchase. The strategy is to focus on mass production of standard products, which is usually more efficient and requires lower unit costs than the production of small batches of heterogeneous products. In this case, savings in variable costs are achieved through high specialization of production. Fixed costs per unit of production, decreasing with increasing production volumes, create an additional reserve for reducing the cost of products.

An enterprise that adheres to a cost reduction strategy focuses on the production of inexpensive but high-quality consumer goods. The desire to be a leader in achieving the lowest cost in the industry requires optimal production sizes and product sales networks, capturing a large market share, using resource-saving technologies, and maintaining strict control over overhead costs and other types of fixed costs.

Product differentiation strategy. Differentiation is based on specialization in the manufacture of special (sometimes unusual) products that are modifications of a standard product. Such products are indispensable for consumers if standard products do not suit them. Isolation of a product on the market, and in a broader sense, differentiation of its commercial characteristics can be carried out through the creation of products with more advanced technical parameters and workmanship than standard products, on the basis of providing a wider choice of services in the sale and operation of products, on basis of the attractiveness of low prices.

Thus, the main idea of ​​differentiation is to concentrate efforts on the production of products in limited demand, which allows you to avoid price competition with more powerful enterprises and at the same time makes it possible to compete with them for specific groups of consumers.

Often the most attractive way to differentiate products is to use techniques that are least similar to those of competitors. This forces you to look for new, original ways to highlight your products and brings diversity to the market. Imitation is a disastrous path when implementing this strategy.

At the same time, as experience shows, the simultaneous use of several methods of differentiation can lead to an attempt to do “everything for everyone,” i.e., switch to the path of unification and, thus, spoil the image that the enterprise creates in the market. The most typical use of a differentiation strategy is to focus on one of the reasons why consumers buy products and develop their capabilities to better and better satisfy specific needs.

Market segmentation strategy. While the competitive strategies presented above are based on serving the entire market, a segmentation strategy is aimed at providing advantages over competitors in a separate and often single market segment, identified on the basis of geographic, psychographic, behavioral or demographic principles. The core idea of ​​the strategy is that a business can serve its narrow target market more efficiently than competitors who spread their resources throughout the entire market. As a result, an advantage over competitors is created either by differentiating products based on better satisfaction of the needs of the target market, or by achieving lower costs in servicing the selected segment.

Consequently, without pursuing the goal of providing leadership in cost reduction and (or) product differentiation throughout the market, the enterprise, based on market trends, achieves such results in the target segment. Having low production costs or offering a large selection of products for a specific, for example, geographically isolated segment, an enterprise protects itself from opposition from enterprises using other competitive strategies.

Innovation implementation strategy. Modern world experience of competition irrefutably proves that the vast majority of monopolies formed recently arose on the basis of discoveries, inventions and other innovations that made it possible to create a new, previously unknown market with broad opportunities and the prospect of accelerated growth. Today's leaders in the automobile, aviation, electrical and electronics industries arose from small pioneer firms. Recent decades have confirmed this pattern in the production of computer equipment, software development, and the creation of special types of weapons.

Enterprises that adhere to the strategy of introducing innovations do not bind themselves with the need to reduce the cost of manufactured products, differentiate them or develop a specific market segment, but concentrate their efforts on finding fundamentally new, effective technologies, designing necessary but hitherto unknown types of products, methods of organizing production, sales promotion techniques, etc. The main goal is to get ahead of competitors and single-handedly occupy a market niche where competition is absent or negligible. Such market revolution is a source of large sales volumes and excess profits, but in most cases (8 out of 10) it ends in bankruptcy due to the market’s unwillingness to accept innovations, technical or technological imperfections of the new product, busy distribution channels, lack of experience in replicating innovations and other reasons. The high risk of following this strategy, explained by the high degree of uncertainty of its results, is comparable to venture risk, which keeps many firms from specializing in this business.

Strategy for immediate response to market needs. The presence of effective demand for a specific type of product only in theory automatically creates its supply. In practice, most enterprises are not able to engage in activities that do not correspond to their profile.

In contrast to such enterprises, firms implementing a strategy of immediate response to market needs are aimed at meeting emerging needs in various business sectors as quickly as possible. The basic principle of behavior is the selection and implementation of projects that are most profitable in current market conditions. Enterprises aimed at rapid response are ready to immediately reorient production and change its scale in order to obtain maximum profit in a short period of time, despite the high unit costs determined by the lack of any specialization of their production.

Most modern companies with a wide range of products and (or) various business areas simultaneously use several competitive strategies for different product groups, regions or periods of their development. The main criterion for choosing a strategy is adapting your capabilities to specific market conditions. In this sense, the presented approaches are the general economic basis on which practical marketing work is built.