Международная студенческая научно-практическая конференция «Инновационное развитие государства: проблемы и перспективы глазам молодых ученых». Том 2

Shumskaya A.U., Kasian S.Ya., Reutskova O.M.

Oles Honchar Dnipropetrovsk National University, Ukraine


The development of private enterprise, in the early 90s led to the creation of a large number of private enterprises, which were relatively small in size. Their specialty was originally based on the resale of goods. But eventually, when the number of sellers in the market grew many of them had to move to another area – production of goods.

This area is different as it allows a manufacturer to produce the products which are not currently on the market or are available in small quantities. It is much more advantageous in comparison with the resale of the goods. But it also has some problems that must be solved. If they didn’t use to think about advertising their goods and the way of its promotion, now they have to deal with such matters.

Development of private enterprises depends a lot on the competent solution. This problem is particularly actual for companies that have just started their production activities. In this very case marketing efforts or so-called marketing strategy are crucial.

Marketing – is a human activity aimed at meeting needs and wants through exchange (according to the founder of the theory of marketing Philip Kotler).

Marketing strategy is a specific process, during which a variety of marketing activities is planned and implemented. These activities are aimed at achieving the goals that the company set. The objectives of each company or organization can be highly individual, but there are some basic ones:

- to increase sales;

- to identify needs of target audience;

- to increase profits of a company;

- to increasing market segment, etc.

All marketing campaigns of any company must meet a developed marketing strategy. Moreover, consistent marketing strategy must be agreed with an advertising sphere, the area of ​​sales, PR-activities, which must implement it.

Competent campaign allows during a fairly short period of time to secure a footing in the market in the sector where the company operates. At this stage not all intermediaries who sell them to entrepreneurs, even if their quality is high enough. In this very case it is important to use different marketing techniques that allow them to find as many intermediaries as possible.

One of the techniques used by employers is personal contacts of the head of the company directly with the major trade agents. It will enable to build faster trade links. But obviously, this is not enough. It is therefore necessary to use additional measures. One of such measures is to set a special price for each intermediary. It is necessary to inform the dealer with whom the company wants to cooperate in the form of a commercial offer.

Attention should be paid to the price which is set for production. Since the company is new and still unknown in the market, the main competitive advantage is price. Therefore, companies should not inflate the price, despite the high quality of its products, but to restrict it. The price range must make profit to be attractive for intermediaries as the most important thing is to find trade agents. Later, when it is done, you can gradually increase the price. But we should not do it too fast. Many entrepreneurs undertake it. But it is their main mistake. As a result of a sharp rise in prices many trade agents stop cooperating with them.

Therefore it is necessary to avoid the mistakes that can lead to serious consequences for the company. They can not only reduce the amount of profit, but in addition limit the sales market of the company that can lead to serious consequences for a new enterprise.

Also, there are some more techniques of sales increase

1) speed of service;

2) friendly and helpful staff (very important in fact);

3) providing after-sales service (service, repairs, and etc);

4) quality assurance of goods (services).

Finally, the basic method of sales increase is advertising. But the advertisement should be clearly thought out, informative and quality. A good example is an internationally known pans brand Tefal. The company Tefal has long believed that the primary motivation to buy frying pans with Teflon coating is the ability to cook without oil. But soon it became clear that the main incentive was that the pans are easy to clean because food does not stick to their surface. The content of the advertising campaign have changed and sales began to rise.

Thus, to increase sales to small industries it’s necessary to keep the correct marketing strategy. In a small business there is no marketing department and in a small business a manager is considered to perform the functions of a marketing specialist. That’s why following the advice concerning marketing strategy a company owner can raise his business to a higher level.