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T.I. Kompaniets
INFLUENCES OF ADVERTISING ON ADVANCE OF CONSUMER GOODS IN
THE CONDITIONS OF THE MODERN MARKET
Summary. In the article the essence of the concept of advertising and its function, main features,
principles and classification. Attention is paid to research scientists in the field. The article also examines
the impact of advertising on the promotion of products in today's market.
Key words. Advertising, brand, communications, market, advertising in mass communication,
public relations, demand promotion.
Statement of the problem. Nowadays, advertising has become an integral part of
our world. It does not in all areas of our lives, and whether we like it or not, affects us and
the decisions we make. The reform of the Ukrainian economy on the path of market
reforms led to the emergence of a new kind of business - advertising business. In
connection with the transition to a market economy, advertising gradually becomes again
the motor trade, as it should be.
The relevance of the chosen theme is that in the current economic market, tough
competition for all businesses important activity is to conduct competent advertising
companies.
From my point of view, a need for detailed analysis of promotional activities to help
the average entrepreneur to leverage the power of advertising in business for more profit
and create a positive company image in the minds of consumers.
Analysis of recent research. To study the topic of me viewed the works of wellknown specialists in the theory and practice of advertising and marketing. The experience
of such giants of advertising, as Leo Burnett, Claude C. Hopkins , N. Bernbach and David
Ogilvy gives the opportunity to understand the principles and laws of advertising, the main
directions of development of commercial communications, principles of advertising
agencies, the psychology of advertising messages, using characteristics of the target
audiences.
Christian Gronroos convincingly proves that the majority of works devoted to
marketing based on the marketing mix and its four components: product, price, placement
and promotion. However, this scheme, with its obvious advantages, suitable for the
description of the market of consumer goods of mass production. This market implies a
well-developed system of distribution channels and extensive use of commercial media
that may not be common in this volume on the market of industrial goods and services.
Moreover, the concept of marketing mix has significant shortcomings, which
consists primarily in the fact that it is focused on manufacturing and treats consumers as
persons, but not for which production takes place. The experiences of the modern worldrenowned specialist in advertising and marketing Philip Kotler is a real philosophy and
practice of improving the quality of life of people by increasing the quality of goods and
services and meet the needs of consumers. To do this, and designed promotional and
marketing activities of enterprises. The book "principles of marketing" provides the
company of any level to adapt it to the needs of the market, to consolidate and improve its
position in the market.[1]
A relatively new phenomenon for domestic science became interested in the
problem of the relationship between advertising and market development, the specific role
of advertising in modern business environment. In this direction it should be noted
fundamentally important question of work A. Vedernikov, V. Ilyin, E. Kubalova, S.
Veselov, O. Golubkova. Review of the global and Russian advertising market with
consideration of the peculiarities of its organization devoted to the work of the Century
Evstafiev, M. Ignatova, A. Krylov, S. Markov, Y. Seine, L. Tûleneva, I. Rozhkov. Among
these authors did much of the analysis of the mechanism of functioning of the advertising
market, and therefore determined the peculiarities of supply, demand, advertising services,
and education, the equilibrium market price.
In addition to the General works of the recognized classics in the field of advertising
and marketing, I used Russian and Ukrainian authors who are more familiar with the
peculiarities of the domestic market economy. This is a tutorial on advertising Nomata
"Advertising", research Bezeckeho "Modern advertising", "Theory and practice of
communication Gpotatoe. A significant contribution to the study made by such scientists
as Woychak AV, Garkavenko S., Romanov A.N., Balabanova L.V., Kotler F. But this
topic requires a more detailed and in-depth research.
The main material. Only a few commercial enterprises can now successfully doing
business without advertising in one form or another. Reputable firms, where there are fulltime professionals and support advertising agencies, the various functions to be easily
shared among appropriate for their performance of employees. Many national advertisers
annually spend millions of dollars and willing to risk huge sums of money for the sake of
launching new brands of goods or services. Conversely, a small company must obtain the
maximum benefit from every penny of it, dedicated it to achieve fame.
Modern market economy, as the experience of many developed countries, cannot
exist without such an institution as advertising, which is one of the most important
instruments of market development. If a manufacturer to deny such an effective
communication with the consumer, what is advertising, it will cease to invest in the
improvement of old and creation of new products.
As a result, the pursuit of development, competition between the different subjects
of market relations will decrease, there will be a slowdown in economic growth, which
negatively affect the entire structure of production relations, and the economic system as a
whole. Therefore, in countries with high living standards, mass production of huge
amounts of money are spent on advertising.
To determine the object of this study it is necessary to consider the essential
characteristics of the key concepts of advertising and its features in comparison with other
components of the market mechanism. This scientific category still does not have a strong
and final determination, each time the emphasis is on the different side, the most
interesting in each case. Therefore, having reviewed a number of definitions of this
concept, we will try to offer their interpretation of the advertisement, based on its
economic substance.
Advertising occupies a Central place in marketing communications. There are many
definitions of advertising.
In the Law of Ukraine "On advertising" the following definition of advertising:
"Advertising is information about the person or goods, common in any form or by any
means, and intended to form or to maintain awareness of advertising consumers and their
interest with respect to such person or goods". This definition emphasizes the connection
between advertising and market with its sellers and buyers and the competition of goods
and services is increasing.[2]
Advertising can be seen as a form of communication that tries to bring quality
goods and services on the language needs and demands of the consumer. The relationship
is not simple. Therefore, from the outset, it is important to remember that the
advertisements that we see and hear, are the end products of a wide range of studies,
strategic plans, tactical decisions and concrete actions, which collectively process the
organization of promotional activities.
The advertising many applications. It is used for the formation of long-term image
of the organization (prestigious advertising), to disseminate information about the sale,
event or service (image advertising), for long-term allocation of a particular branded
product (advertising the brand of the manufacturer or mediator), to advertise the sale at
reduced prices (advertising sales) and to advocate for specific ideas (advocacy
advertisement). [3]
Since the principles of the theory and practice of marketing and advertising are
constantly updated, changing, always new innovative solutions, it is advisable to
constantly be aware of the latest events and news in this area. Sources of information are
periodicals, the Internet. Knowledge of basic theoretical and practical aspects, as well as
the presence of common sense and the necessary tools can help make the advertising
company of good and interesting.
The market of goods and services that is currently being formed in Ukraine, requires
maximum involvement and use of advertising. Advertising, on the one hand, provides
consumers with a variety of information necessary for the purchase and use of products.
On the other, combining their information content with persuasiveness and navyvet,
advertising affects the emotional and mental state of a person. Advertising, by itself, both
business and art. Advertising is not the product and benefit from it for the buyer, it what is
the problem it is due to product get rid of. The advertisement must contain evidence of the
advantages of Your goods.
Identify the following features of the promotional activities as part of the system of
marketing communications: neomobile nature, one-sided orientation, uncertainty, social
character, oplachavat, the brightness and the ability to coaxing.
The main functions of advertising consistent with the General purposes of
marketing communications. Advertising is designed to solve the following tasks:
information, message, reminder, positioning, keep the customers, the formation of the
image. Different advertising consumer goods and industrial goods. The main features of
the advertising of consumer goods - the emotion of the text, the relationship with the idea
of the product, underlining the image of the product and company. In the advertising of
goods for industrial use notes on the rational side information. The main thing here is the
content of the text, its validity, absolute truthfulness.
When it comes to the implementation of advertising, should consider the presence
of some advertising.
Subjects advertising:
­
Customer - manufacturer, trader or both.
­
Artist - at the stage of promotion it must determine effective frequency and
duration of exposure advertising.
­
Distributor - the organization that owns the media or other means of
advertising.
­
Consumer - a potential buyer.
In the process of advertising involving its singer, distributors and consumers.
Significant lack of advertising (except straight) - quantitative uncertainty effect. It can be
estimated only indirectly. [4]
To understand the advertising you need first of all to understand its most essential
functions. One of collateral formation in real terms of various advertising landscape may
be asking questions: Who uses the advertising for which audiences, by what means of
advertising and for what purpose?
Let's start with the manufacturers. These are enterprises that produce goods and
offer services with the aim of generating profits. Often they offer their goods or services
under the trade mark, but not always. This can be a company name or brand name of a
range of products of the company. Advertising on behalf of producers has many varieties
(advertising on trade, prestigious advertising aimed at individual consumers are the
others).
After the advertising of consumer goods and services distributed by manufacturers,
advertising on behalf of retailers, perhaps best known to most of us and certainly has a
daily impact on our purchasing behavior. Many retailers offer for sale goods manufactured
by others. Retail Department stores, pharmacies, grocery stores, sporting goods stores - all
offer us the goods purchased by them from the manufacturers. In other cases, local
businesses, for example, banks, restaurants, funeral home, or cleaning, in addition to sales,
we offer the services. However, in both cases, the desired goal of advertising is in
principle the same: buy in my store (use my services), and not from a competitor. In fact,
advertising provides the opportunity to sell a potential customer message about the product
or service. So, to get buyers to opt for this product, this service before all others.
The basis of advertising information and belief. It does this by purchasing space and
time in the media. Advertising in the mass media contributes to the development of mass
market goods and services, and, sometimes, attachments from advertising begin to ensure
the livelihoods of Newspapers and magazines, trying to cover as large masses of people.
Thus, millions of people, and even the whole nation, constantly receive fresh news and
advertising messages.
Advertising informs the huge masses of people with information about more new
and advanced products. It plays a key role in the development of the economy and is an
important element. The most important condition for effective entrepreneurial activity is
the creation and production of new competitive products. A new product must meet the
needs that will emerge from consumers to the release of products to market. This process
requires targeted advertising efforts both in production and in trade. Advertising brings to
market new products and services, creates new needs. If a manufacturer to deny such
effective communication with consumers, what is advertising, it will cease to invest in the
improvement of old and creation of new products. The pursuit of development,
competition in business will decrease. [5]
However, you cannot consider advertising a cure-all and be used as a reliable tool.
Effective advertising requires a competent, focused approach. Advertising is only effective
if it is included in the overall process of creating a product and its promotion to the buyer.
Disjointed, episodic promotion is not effective enough even with high-quality advertising.
A characteristic feature of modern advertising is to purchase her new role in the
involvement in the management process of its production and sales activities of industrial
and service firms. The essence of the new role of advertising in that it has become an
integral and active part of a comprehensive marketing system, the level of which
determines the quality and effectiveness of the promotional activities of the manufacturer
in accordance with the new requirements of the world market. A significant complication
of sales and increased competition that took place 70 years has led to the fact that
marketing has become a competitive factor, no less important than the achievement of
excellence in the market through the introduction of technical innovations or reducing the
cost of production. Advertising was virtually the only tool of influence on the market.
Each stage, starting with the inception of production to sales, must be accompanied
by an active programme of promotional activities. Without the ability to use the tools of
advertising significantly reduced the ability to actively influence the market, to ensure
your success in the competitive struggle for markets. Targeted advertising efforts must be
present in the sphere of production and trade. The connection between production and
consumption is determined by the market, i.e. the relation between sellers and buyers in
the process of commodity exchange. Advertising is the connecting element of the market,
because of acts of sale to potential buyers and sellers need to know the market, to have a
certain minimum information about the state of demand and supply. Disseminating
information about the availability of goods, the conditions of their purchase and
consumption, advertising participates in the formation of the merchandise and thus - and
demand,
from
the
point
of
view
of
its
specific
direction.
For better perception of the essence of advertising is necessary to delve into the theory of
communication and its relationship to communication and marketing policy.
Communication is a social process due to transmission and perception of
information in different ways on different communication channels and by different
means. There are three approaches to the understanding of this category as a means of
communication as a communication and information transfer. Sophisticated advertising
affects various aspects of entrepreneurship, initiative encouraging the production of new
products, the use of scientific and technical progress, factor fashion, division of labor,
specialization and cooperation of production. The combination of economic business
advertising allows businesses and other market actors to get high returns and, therefore, to
develop production.
Development in the country market, competition in a new way raises questions
about the place and role of advertising in our society. In parallel with the development of
commodity production growing economic role of advertising, whereby consumers prefer a
particular product or service that accelerates the process of buying and selling, capital
turnover. Properly organized advertising and information activities in the market affects
not only the economic system as a whole, but also for industry, businesses and individual
consumers. [6]
Advertising should be considered also as an element of national culture, one of the
main mechanisms of its formation, do not be afraid even to say that advertising was in fact
a kind of art form. And art is a reflection of culture generation and advertising, in
principle, can provide a comprehensive description of the masses, for which it is created.
Conclusion. To lead a successful business, it is not enough simply to offer the best
product at the most reasonable price. For increasing the profit of the store constantly have
to create the demand for goods, to inform the potential buyer's information about the
material, moral, and social benefits that await him in case the services of this company.
This should be aimed activities of the employees. Analyzing economic activities, you may
notice that the profit was not very high. And perhaps if more competently and more used
to the media, exhibition activities, methods of sales promotion, the larger would be the
profit of the company.
As the economy of our country almost went to the market and operates exclusively
under the laws of the market, each company is responsible for its work and independently
makes decisions on further development. But in a market economy survives is the one who
makes the best use of the resources that he has, to get the maximum amount of profit,
solving the main problems of economic activities.
LITERATURE
1. Котлер Ф. и др., Основы маркетинга: Пер. с англ. / Котлер Филип, Армстронг
Гарри, Сондерс Джон, Вонг Вероника. - 2-е изд европ. / Котлер Филип – М.: Изд. дом
«Вильямс», 2011. - 1152 с.
2. Закон України «Про рекламу» від 18.02.2006 № 2132-ХІІ // Електронна база
«Законодавство України» http://zakon4.rada.gov.ua/.
3. Ромат Е. В. Реклама. Учебник для студентов специальности «Маркетинг»/
Е.В. Ромат – Киев; Харьков: НВФ «Студцентр», 2010. – 504 с.
4. Маркетинг: [підруч. для вищих навч. закладів] / За ред. О.М. Азарян. – К.:
НМЦВО МОіН України, НВФ „Студцентр”. – 2009. – 320 с.
5. Гаркавенко С.С. Маркетинг / С.С.Гаркавенко. Підручник. – Київ: Лібра,
2002. – 705с.
6. Войчак А. В. Маркетинг / А.В. Вовчак, А.Ф. Павленко. Підручник. КНЕУ.- К.,
2003. –246 с.