The economic indicators characterizing importance of advertising activity

 

Expenses on advertising? A powerful part of the budget of foreign industrial firms. They show the tendency of development of advertising activity. In the USA on advertising in mass media 5% from total expenses on manufacture and realisation of the goods leave approximately. At manufacturers of consumer goods this share still above: medicines? 20%; spirits, cosmetics? 13, 8%; kitchen accessories? 12, 8%; spirits? 11, 9% and so on [30, с.332].

According to the Russian legislation expenses on advertising include following positions [15, s.13-23]:? On working out, manufacturing and distribution of ad publications;? On working out, manufacturing and distribution of sketches, labels, samples of original and firm packages, packings, acquisition, manufacturing and distribution of advertising souvenirs, samples;? On publicity through mass media;? On illuminated signs;? Manufacturing of stands, models, publicity boards, indexes;? Storage and экспедирование advertising materials;? Participation in exhibitions, fairs, window dressing;? On уценку the goods which in full or in part have lost the quality at exhibiting in show-windows. Expenses join in the actual cost price of production in full. The limiting sizes of expenses on advertising are estimated according to the rates from goods turnover volume, including the value-added tax. The account of expenses on advertising helps to estimate productivity of advertising activity of the enterprise.

The general estimate of expenses for carrying out of marketing researches of the market and carrying out of the advertising company includes the following articles [1, с.86]:

cost of marketing researches;

cost of working out of a page in the Internet;

cost information not advertising article; - cost of placing of advertising messages in mass media.

Absolutely precisely to define efficiency of separate advertising media, in most cases it is not obviously possible to an advertising campaign. There are two approaches to an estimation of efficiency of advertising activity of the enterprise [28, с.41]: and #61607; quantitative (economic efficiency) which shows degree of increase in sales volumes under the influence of advertising; and #61607; qualitative (efficiency of psychological influence) which allows to estimate degree of popularity, trust and adherence of consumers to the goods or the company. In practice use both quantitative, and qualitative approaches which allow to obtain the objective given estimations of advertising activity of the enterprise. Experts define also some kinds of an advertising efficiency, to be exact social, psychological and economic efficiency [19, с.118].

Social efficiency is defined by degree of satisfaction of inquiries and needs of consumers, its ability to formulate certain skills, requirements, tastes to raise the general level of culture, culture of a life, a food. Psychological influence of advertising is shown in change of public opinion concerning any subject, the phenomenon, concept. To define the given influence it is possible only by means of supervision, interrogation or experiment. Economic efficiency of advertising is estimated on degree of its influence on goods turnover volume. It shows additional profit as a result of advertising influence. There is no uniform approach to advertising efficiency definition. The most simple way? This comparison of goods turnover before advertising campaign carrying out. Thus compare goods turnovers for the periods (months, quarters), equal to the period during which the goods [19, с.118] were advertised. Some experts offer methods of an estimation of economic efficiency of advertising. Following methods concern them [23, с.402]:

1) Robinsona,

2)? Hiding places?, which consists that the present advertisements from which marks, names of firms-manufacturers are withdrawn are used; the interrogated should specify goods mark, having read the announcement text.

Besides, there are also other methods of definition of efficiency of advertisements. To them carry:

1) a method of supervision, experiment (is applied on the published announcement the coupon which it is required to fill and send to the specified address, or the coupon at which presentation at goods purchase, the discount is given; by calculation of the sent or shown coupons it is defined, сколькими the given announcement has been noticed by people),

2) an interrogation or questioning method. Economic efficiency is better to judge by result which has been reached by means of advertising.

The economic result is defined by a parity between profit on the additional goods turnover received under the influence of advertising, and expenses on it. In this case from carrying out of publicity the effect is compared with expenses for its realisation.

Following variants are possible: - the effect from publicity is equal to expenses for its carrying out; - the effect from publicity is more than expenses; - the effect from publicity is less than expenses. However still it is not enough received data for comparison of economic efficiency of expenses for carrying out of various publicity. More precisely efficiency of publicity expenses characterises its profitability. Profitability? This relation of the received profit to expenses (in percentage).

In the present work we will consider that the concept of an advertising efficiency comprises two components: communicative and economic efficiency.communicative efficiency concerns quality indicators of an estimation of efficiency of advertising activity, economic efficiency? To quantity indicators. Such indicators concern quantity indicators, as an advertising rating, a share of coverage of a potential audience also.

Efficiency of psychological influence of advertising means is characterised by number of coverage of consumers, brightness and depth of the impression, which these means leave in memory of the person, degree of attraction of attention. For definition of degree of attraction of attention of consumers to advertising the number of the people who have paid attention to advertising is necessary and remembered it during the certain period to divide into total number of people which have seen advertising during this period. In mass media it is possible to estimate degree of effectiveness of the publication of advertisements with some degree of convention, having divided number of purchases during the defined period of time for total of visitors during the defined period of time.

That it is correct to estimate efficiency of the created advertising, it is necessary to spend accurately border between the communication and commercial (trading) purposes of firm (fig.1.6). Advertising as it was marked earlier, is aimed not only at achievement of competitive advantages (a share of the market, profit, a sales volume), but on achievement of certain results of communications with a target segment of the market.

In advertising practice distinguish four cores of an indicator of a communicative advertising efficiency: recognizability; запоминаемость; attractiveness; propaganda force. Recognizability of advertising? It is criterion on which recognition symbols or external attributes of the trade mark are estimated first of all? A trade mark, a logo, the firm name. More highly on this parametre those recognition symbols, which are estimated: demand less time for recognition; are perceived in wider spatial range.

By this criterion are estimated not only recognition symbols, but also the advertisement as a whole memory. One of the basic criteria both communicative, and a trading advertising efficiency. At the heart of use of this criterion the hypothesis formulated by classics of an advertising of R. Rivsom and A. Polittsem and divided by a number of modern writers lies: the person will choose that mark, which name and data about which it has better remembered. This feature of human behaviour of A. Politts (1990) has formulated in the form of a principle? Familiar mark?. He has established that expansion of knowledge of mark increases trust to it and raises its rank of quality in perception of consumers. Even the simple knowledge of the name of mark raises trust to it in comparison with absolutely unfamiliar mark [22, с.72].

Attractiveness of advertising in many respects depends on togas, how much successfully and in an original way creative decision embodied in a real advertising product. But the creative decision, more truly, its efficiency, it is the most difficult to estimate. The preference of mark seldom is based only on a rationale. That mark which advertising causes emotional participation will be seductive. Propaganda force? It is ability of advertising to force consumer to wish to get the goods. As indicators of propaganda force (on A. Polittsu) the following complex of properties can serve: The subjective importance of a theme, plausibility of the basic statement about the goods, uniqueness of the statement. Not in any advertising possessing propaganda force, all three properties, but presence at least two are presented it is necessary. Thus, it is possible to allocate four basic properties, defining propaganda force of an advertising appeal (properties are presented in decreasing order of the importance): the subjective importance; plausibility; uniqueness; integrity.

The primary goal of an estimation of a communicative advertising efficiency consists in indirectly to predict its influence on sale. And though outright to judge a trading advertising efficiency by its communicative efficiency it is difficult, nevertheless correlation between these concepts exists. The modern advertising and marketing companies aspire to find special formulas (using different combinations of indicators of communicative influence) on which it would be possible to predict a trading advertising efficiency.

The advertising efficiency is expressed in studying of degree of acquaintance of target audience with the information on investigated firm and its goods, and also what about them is known, what image of firm and the goods was generated also what relation to them. To create representation about the goods and firm, and furthermore to generate the good relation to them not always easily. It demands time and certain strategy. Relations in the market? It, first of all, human relations. Advertising allows to form the necessary representations about investigated firm at a wide audience on which basis it is easier to build relations. So, in conclusion of the head we will tell the following.

Now the economy of Russia is in a transition state from planned system to the market. And if earlier the industrial enterprises had not to reflect on production sale, the state now in the conditions of the market each enterprise at own risk independently solves was engaged in it what exactly it will make and how to market, what will be thus used means. As in present conditions any businessman can make that considers it necessary also possible the number of manufacturers of similar production becomes very big. And everyone them them to aspire to win the market. It also induces the organisations to undertake the various actions promoting realisation of production. To these actions carry improvement of quality of production and use of various advertising receptions: appeal of packing, послепродажное service, the offer of the accompanying goods and services.

It is necessary to approach to research and an estimation of efficiency of advertising activity in a complex, thus to use both quantitative, and quality indicators to estimate both trading, and a communicative advertising efficiency. In conclusion of chapter 1 we will draw following conclusions.1. Advertising? It is any paid form of impersonal representation and stimulation of sale of ideas, the goods and services by the certain sponsor.

2. Advertising is the most significant making system of marketing communications which allows the enterprises to achieve long-term competitive advantage, and also serves as the basic tool of positioning of the enterprise in consciousness of a target segment of the market.

3. The essence of advertising consists in an ohm that it hands over by means of mass media the information on consumer properties of the goods for the purpose of creation of demand for it.

4. The advertising purpose consists in systematic influence on mentality of the person to cause in it desire to get the known blessings.

5. Advertising became the integral and active part of a communication complex of marketing. And its level of development defines quality and efficiency advertising-information work the manufacturer and its conformity to new requirements of the world market.

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