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Consumer goods packaging is packaging designed for use in a retail environment. The constantly shifting demands of modern consumer societies have turned consumer goods packaging into an extremely diverse and creative industry.
Versatility
Modern consumer goods packaging displays an incredible variety of solutions and responds to a range of consumer concerns, such as employing re-usable and recyclable materials.
Retail value
The main concern of consumer goods packaging is to add to the product’s value. This is done by protecting and conserving the product, effectively marketing the product to the consumer and providing important and useful information on the product to the customer.
Protecting the integrity of the product is preferential and the number one priority for any consumer goods packaging solution.
Next, consumer goods packaging seeks to serve as an incentive to purchase the product, making it eye-catching and suitable for retail display.
Consumer goods packaging is also an ideal medium for the transmission of information that is useful, relevant to the product and an incentive for its purchase.
On a practical note, consumer goods packaging must factor in the distribution of the product’s weight and volume, so as to compete for and maximize the available shelf spa
8. Competitiveness of the goods - the ability of products to be attractive in comparison with other products of similar type and purpose through better compliance with the requirements of the characteristics of the market and consumer evaluations.
The main criterion is the degree of competitiveness of products to meet their real needs. However, direct measurement of the degree of satisfaction of needs is impossible in view of psychophysiological consumers' perception of certain goods. Sometimes the advertised goods with low consumer properties consumers perceived more favorably than unadvertised products with the same and even better consumer properties. Therefore, indirect competitive assessment criteria which can be classified into two groups: personal and economic.
Products are competitive if it has at this consumer segment one or more consumer characteristics. better than in the goods-analogues (with these characteristics are recognized by leading consumers). Consumers are not interested in the absolute best of all characteristics of the product, but the fact. which combines quality, most popular in this market segment, and are often willing to sacrifice the individual characteristics of the product for the betterment of others.
Competitiveness of the goods on the market is determined by comparing its cost (taking into account the purchase price of goods by the buyer and the cost of maintenance during use or consumption) and consumer performance with other products generated by market demand and conditions of supply on the market.
9. The pricing policy of the company - an important part of its overall economic policy that provides firms adapt to changing economic conditions.
In a market economy, business organizations have a real opportunity to pursue their own economic policies, including pricing.
The pricing policy of the company as a means of winning the consumer plays an important role even in the highly developed European markets. This is especially true for business in Kazakhstan in high dynamic emerging domestic market, the active penetration of foreign competitors, empowerment exit Kazakh enterprises in the international market, maintaining a low effective demand of the population.
Domestic firms are facing the decision of the following key issues in the area of pricing:
-the development and effective use of new models of markets and pricing policies of the company, summarizes current practices and explain the motives of market counterparties;
-providing a flexible approach to pricing, depending on the phase changes of the market and the nature of the product sold;
-develop an effective pricing strategy and the choice of the most appropriate pricing methods depending on the purpose, elected by, and real market conditions;
-development of pricing tactics with the ever-changing economic environment.
10. The main stages of pricing methods and strategies
The pricing method you select provides direction on how to set your product price. The way you set prices in your business will change over time, for many reasons. As you learn more about your customers and competition, you may decide to change your pricing method. Use changes in the industry or the development stage of your product as an indicator that it’s time to review your pricing strategy.
There are three basic methods to price your product:
· cost-based pricing
· competition-based pricing
· customer-based pricing
Cost-based pricing is where the price includes the cost of ingredients and cost of operating the business.
· include a profit percentage with product cost
· add a percentage to an unknown product cost
· blend of total profit and product cost
Competition-based pricing is where the price covers costs (cost of raw materials and the cost of operating the business) and is comparable to the competitor’s price.
· price is the same as the competition
· set price to increase customer base
· seek larger market share through price
Customer-based pricing, also known as value-based pricing, is a system where the price is based on the customer ‘demand’ or need for the product. If the product is unique or innovative, a value-based price may help create a demand for the product or service.
· use price to support product image
· set price to increase product sales
· design a price range to attract many consumer groups
· set price to increase volume sales
· price a bundle of products to reduce inventory or to excite customers
11. When people hear the term "merchandising" ("commercial planning of production"), many think of an exhibition of goods on a show-window or it is possible, about mass distribution of memorable things of Disney. Despite it, the merchandising is broader concept, covering everything that the company does to issue and present the goods or services.
Means creation of visual displays which attract clients to a material product for some firms "commercial planning of production". For others, such as consulting and law firms — it is presentations which they direct, for display to alleged clients of that they can offer. Anyway, the effective merchandising shows quality and style, and also gives both to the potential, and existing clients opportunity to see goods or services in operation.
12. Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity.[1] In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase.
Artificial methods of hard-sell cause irritation and frustration of the perfect purchase. The main purpose of merchandising today — is not seeking to force the consumer to buy as many goods, as possible, but building a comfortable shopping space in which it is pleasant to easily choose the right product, which in turn stimulates the activity of visitors' purchasing.
13) Modern marketing demands much bigger, than to create the goods satisfying needs of the client to quote on it the suitable price and to provide its availability to target consumers. Firms have to carry out communication with the clients. Thus in the content of communications there shouldn't be nothing casual, otherwise, at firm the profit because of heavy expenses will decrease by implementation of communication and because of the caused damage to image of firm.
The complex of marketing communications consists of four fixed assets of influence:
- advertizing;
- promotion;
- sales promotion;
- personal selling.
Directly process of communication includes nine elements and is presented by F. Kotler in the following model:
The sender - the party sending the address to other party (firm client).
Coding - a character set, given by the sender.
Means of distribution of information - channels of communication on which the address is transferred from the sender to the recipient.
Interpretation - process during which the recipient attaches significance to the symbols given the sender.
The recipient - the party receiving the address transferred other party.
Response - a set of the responses of the recipient which resulted from contact with the address.
Feedback - part of response which the recipient informs the sender.
Hindrances - unplanned interventions of the environment or distortion therefore to the recipient the address, excellent that the sender sent arrives.
This model includes major factors of effective communication and defines the main stages of work on creation of effective system of communications:
- identification of target audience;
- definition of degree of consumer readiness of audience;
- definition of desirable response of target audience;
- drawing up the address to target audience;
- formation of a complex of marketing communications of firm;
- development of the budget of a complex of marketing communications;
Also influence structure of a complex of marketing communications:
- goods type (consumer goods or goods of industrial function);
- stage of life cycle of goods;
- degree of consumer readiness of the potential client;
- advance strategy (strategy of pushing through or attraction);
- features of a complex of marketing communications of competitors;
- financial opportunities of firm.
14) Strategic marketing planning - process of creation and practical implementation of the general action program of the enterprise.
Process of strategic marketing planning includes the following stages:
1. Definition of the current situation (mission and content of business)
The starting moment of strategic planning are the present purposes and results, and also current activity at the existing organizational structure.
2. Analysis of the internal environment of the company
Are defined strong and weaknesses of the company or a product, in the field of finance, equipment and the production technology, research and development opportunities, etc.
3. Analysis of environment
He is directed on such characteristics as the market, the competition, a macroenvironment, and specifies what the company has opportunities and what it is threatened by risks.
4. SWOT analysis and identification of strategic gaps
The analysis strong and weaknesses, opportunities and threats gives an idea of what put are achievable. The analysis of discrepancies (a strategic gap) will help to specify that threatens the company if style and methods of management remain former.
5. Statement is more whole.
What of the purposes proceeding from results of the types of the analysis described above are represented real.
6. Development of alternative strategy
The strategy directed on realization of the purposes are developed.
7. Strategy choice
8. Development of marketing strategy
Marketing strategy defines how strategy of the company can be realized at the level of PRK.
9. Development of the annual operational plan of marketing.
10. Execution of the plan and control
Monitoring of results, in case of need — updating of plans.
15) The definition of efficiency is a necessary condition for the proper organization and planning of promotional activities of the firm, rational use of labor and material resources spent on advertising.
A study of the effectiveness of advertising should be aimed at obtaining specific information about the nature and interrelationship of factors that serve the objectives of the advertising with minimal cost and maximum efficiency, thus eliminating inactive advertising and identify optimal conditions for its impact.
The concept of advertising effectiveness has two meanings: economic efficiency and the psychological impact of advertising on buyer (psychological efficiency).
Economic efficiency of advertising is an economic result obtained from the use of advertising media or advertisement campaign. It is usually determined by the ratio between gross income from additional turnover as a result of advertising and the cost of it.
The overall economic result is that gross income must be equal to the sum of expenditures on advertising or exceed it.
Psychological efficiency is the degree of influence of advertising on people (attracting customers ' attention, memorability, impact on the purchase motivation, etc.)
The two concepts are closely interrelated. But the criteria for these two types of efficiency, of course, different - in the first case the amount of sales, in the second - psychological peculiarities of perception of advertising its destination.
16) A marketing budget is an estimate of projected costs to market your products or services. A typical marketing budget will take into account all marketing costs e.g. marketing communications, salaries for marketing managers, cost of office space etc. However much of the budget is concerned with marketing communications e.g. public relations, website, advertising, etc. Both are considered here.
The costs in a marketing budget will be allocated according to the campaign and the media to be utilized. Some prior research will be necessary for the cost estimates to be as realistic as possible. This is called advertising or marketing communications research.
Failure to properly cost and budget your marketing plan could lead to problems. While insufficient funding for such items as equipment or staffing may immediately come to mind when budgeting for the whole business, it’s the lack of a properly constructed marketing budget that dooms many marketing plans and campaigns. A marketing budget is the marketing plan written in terms of costs.
17) A marketing budget is an estimate of projected costs to market your products or services. A typical marketing budget will take into account all marketing costs e.g. marketing communications, salaries for marketing managers, cost of office space etc. However much of the budget is concerned with marketing communications e.g. public relations, website, advertising, etc. Both are considered here.
The costs in a marketing budget will be allocated according to the campaign and the media to be utilized. Some prior research will be necessary for the cost estimates to be as realistic as possible. This is called advertising or marketing communications research.
Failure to properly cost and budget your marketing plan could lead to problems. While insufficient funding for such items as equipment or staffing may immediately come to mind when budgeting for the whole business, it’s the lack of a properly constructed marketing budget that dooms many marketing plans and campaigns. A marketing budget is the marketing plan written in terms of costs.
18) Personal, or individual, sales is an oral representation of goods in conversation with one or more possible buyers for sale implementation. Personal sellings are a way of communication in which the seller seeks to support and/or persuade potential buyers to get product/service of firm.
It is possible to refer any personal contact of representatives of the enterprises promoting in a varying degree growth of sale of goods to a personal selling. Carry to representatives of the enterprises: sales agents, direct-sales representatives, brokers, insurance agents. The sales agent is the person acting on behalf of the enterprise and realizovyvayushchiya one or several functions: search of possible clients; adjustment of communication; sale implementation; organization of service; information search and distribution of resources.
At some stages of process of acquisition of goods, in particular at stages of creation of preference, belief and the invitation to action, the personal selling is the most productive means. The personal selling promotes formation of various communications, from formal (the seller – the buyer) to friendly. For the professional seller of need of the client – a subject of personal attention from which there are long professional contacts. The personal selling – forces the consumer to react definitely to communication, at least courteous refusal. Personal selling the most expensive of stimulants. Therefore it is necessary to find out precisely, in what areas this type of advance will bring the maximum commercial effect.
In a personal selling marketing communications are applied: the trade presentations, fairs and exhibitions sales special the stimulating events.
19) Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price).
Sales promotions are often confused with advertising. For instance, a television advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may give the contest the appearance of advertising. While the delivery of the marketer’s message through television media is certainly labeled as advertising, what is contained in the message, namely the contest, is considered a sales promotion.
20) Marketing control is the process of measuring and evaluating the results of market strategy and taking corrective actions to ensure that the marketing objectives are achieved or not. There are number of steps in designing marketing control. These are:
1. Set up the objective
2. Design different control levels
3. Design the tools and methods of control
4. Variance analysis and reason of variance
There are two types of marketing control:
1.) Annual plan control or Operational control:- the main purpose of action plan is to check that whether planned objectives have been achieved or not with respect to profit, sale etc. and in case of any deviation corrective action is taken. The main responsibility of regarding action plan is of top management.
2.) Profitable control:- under this type of control it is the duty of the marketing controller to check where the company is making or losing the money.
21) There is no planning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.
Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control marketing plans. Control involves setting standards. The marketing manager will than compare actual progress against the standards. Corrective action (if any) is then taken. If corrective action is taken, an investigation will also need to be undertaken to establish precisely why the difference occurred.
After determination of the specified parameters follows:
• to establish the admissible accuracy of control measurements;
• to measure the reached results;
• to compare the actual and planned results;
• to accept necessary adjustment actions.
Types of control:
• annual planned control;
• control of profit;
• efficiency control;
• strategic control.
22) In modern market economy along with commodity markets, the capitals, labor, there is a market of services. It represents difficult system which main objective is the satisfaction of needs of the population for services. Service – a special human activity which is directed on satisfaction of needs of the client by rendering the services demanded by certain people, social groups, the organizations.
The extensive and quickly developing part of the world economy which is called as the sphere of service is the cornerstone of the market of services. Now service turned into the large large-scale sphere of human activity. Now more than 70% of industrialized countries are participants of the world market of services. The services sector along with the sphere of production of goods, is an important component of national economy of many countries.
General classification of services:
The productive – leasing, an engineering, service and repair of the equipment.
The distributive – trade, transport, communication.
The professional – bank, advertizing, insurance, financial.
The consumer – mass which are connected with a household and pastime.
The public – TV, radio, education, culture.
23) The important factor influencing development of the Kazakhstan services sector is the characteristic of a workforce. In this regard the tertiary sector of economy possesses quite good potential opportunities: rather low cost of labor that is especially important for labor-consuming services; in general high educational level of labor; ability quickly to adapting to requirements of the economic environment, to show an initiative and creative approach.
At the moment in Kazakhstan there are gaps concerning the statistical accounting of services both in internal production, and in foreign trade (especially concerning geographical structure of export and import streams of branches of services). There are problems with classification of services. So, a brake of development of practical activities of operators of the market of services is the disparate in reference of these or those types of service to export-import transactions.
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