:: ECONOMY :: PROMOTION AS ONE OF THE MAIN ELEMENTS OF THE MARKETING COMPLEX ON THE EXAMPLE OF FIRM :: ECONOMY :: PROMOTION AS ONE OF THE MAIN ELEMENTS OF THE MARKETING COMPLEX ON THE EXAMPLE OF FIRM
:: ECONOMY :: PROMOTION AS ONE OF THE MAIN ELEMENTS OF THE MARKETING COMPLEX ON THE EXAMPLE OF FIRM
 
   
       

Світ економічної науки. Випуск 25

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PROMOTION AS ONE OF THE MAIN ELEMENTS OF THE MARKETING COMPLEX ON THE EXAMPLE OF FIRM

 
24.06.2018 15:52
Автор: Pustova Yana, student of the group MgZKM-17 (l) Kiev National University of Technology and Design
[Секція 2. Менеджмент. Маркетинг;]

The marketing complex is a set of marketing tools, a structure which ensures achievement of the goals setting and marketing tasks solving at the target market.

Sales of goods is a key connection in marketing, a kind of final complex in the entire business of a company to create, to produce and to bring the goods to a consumer.

The sales planning process consists of five stages:

The first stage - Where are we now? (Analysis of the current state).

The second stage - Where are we going to? (Forecast of trends - where the company will be if nothing changes).

The third stage - Where do we strive to be? (Goals - where the firm plans to be).

The fourth stage - How do we come there? (Sales Plans).

The fifth stage - How Do We Find Out That We Go Right There? (CONTROL).

The basis for choosing and justifying the sales channel is to take into account the mechanisms of interaction of the following factors:

• consumers (quantity, concentration, income level);

• companies (goals, control, sales, resources, sales methods);

• goods (price, quantity, volume, competitiveness, reliability);

• channels of commodity movement (types, quantity, functions, availability, restrictions).

At the "Thy Style Plus" company, sales are on two levels. This is the level of B2B and B2C. B2B is focused on the sale of furniture accessories from the brand Sagel and Blum for other furniture enterprises using the accessories "Thy Style Plus" for the ready-made furnituremanufacturing. В2С foresees the goods sale to the end-user. According to these levels there are sales channels of products.

Let’s consider the levels of channels distribution for the firm "Thy Style Plus" and determine the quantity of products sold in the different channels.

1. One-level channel




Fig.1.1. One-level distribution channel by the Sagel division "Thy Style Plus"

The one-level distribution channel will make up only 3.3% of the total sales. In this type of distribution it is worth paying attention and developing ways that would increase the sales of the furniture accessories in Cherkasy and Cherkasy region in this way.




Fig.1.2. One-level Distribution Channel by Sagel division "Thy Style Plus"

The one-level distribution channel for the Sagel division is rather weak, it represents only 7.6% of the total sales. Howeverthe cost of the accessories of the German company is quite large, sales of 387 units a year are quite good.

In this sales channel firm "Thy Style Plus" is a supplier no longer to the end consumer, but for the furniture company or design agency it is a very important component of this implementation channel.

2. Two-level distribution channel




Fig.2.1. Two-level channel distribution division Blum firm "Thy Style Plus"

This is a fairly effective channel of products distribution and the proportion of furniture sold is almost 23% of the total sales in UAH and is 1 430.97 thousand UAHcompared with 6 371.8 thousand UAH.




Fig.2.2. Two-level channel distribution division Blum "Thy Style Plus"

The two-level distribution channel at "Thy Style Plus" is the main one. Through it, more than 60% of the total sales volume are realized. Each component of the channel is very important and necessary. There are 3 suppliers in this marketing channel:  Blum, Nescom Ltd. and "Thy Style Plus". There are also 2 intermediaries, which are also offered by Nescom Ltd and “Thy Style Plus”.

Using such channel for every final consumer there were at least 5-6 units of goods per one day.

This channel is the most effective because a consumer does not buy the product himself, but uses the services of a furniture company or a designer. This means that a consumer does not save on repairs and is ready to pay significant amounts of money for quality goods, as a part of the furniture has been created for him.

References:

1. Astahova I.G. (2016) Marketing: Textbook / I.G. Astahova - Kh. Khnei publishing house,  208 p.

2. Balabanova L.V. (2014) Marketing of the enterprise: a textbook / L.V. Balabanova, V.V. Cold, I.V. Balabanova - Donetsk, DIVD, 268 p.

3. Grigorchuk T.V. (2013) Marketing: tutorial / T.V. Grigorchuk - Moscow: BEC,  421 p.

4. Kolyuzhnova N.Ya. (2016) Marketing. General course: tutorial / N.Ya. Kolyuzhnova A.Ya. Jacobson - M .: Omega,  476 p.

5. Medvedev P.M. (2015) Organization of marketing in the enterprise: tutorial / P.M. Medvedev - St. Petersburg: Peter, 224 p.



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