Using of marketing communications in agricultural enterprise

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Using of marketing communications in agricultural enterprise

Chychkalo-Kondratska, D.Sc. (Economics), Professor

Introduction

In modern conditions in Ukraine all agricultural enterprises want to have efficient production, income and stable cash flows. For its successful activities is necessary to consider not only the state of the market environment (demand, competition, economic performance and political-legal environment, etc.), but also implemented an effective communication policy. After all, only a properly informed consumer will choose the product of best producer and will increase the income.

Analysis of latest researches and publications. Fundamentals research of promoting products as one of the elements of the marketing mix are devoted to the works by A. Voychak, S. Illiashenko, A.Pavlenko,

Reshetnikova and others. Features of agricultural enterprises and promoting its products are exposed in the works by M. Oklander, Yu. Petruni, P. Tarkhova, O. Tielietova, A. Yakovleva and others.There are foreign scientists and experts such as S. Beiker, K. Barnlunda, H. Maletski, Charles Pierce, L. Balabanova, P. Zavialov, P. Matskevich, O. Hromova, V. Shepel, M. Kovalev, L. Lomovskyh and others, who are made an important contribution to the study of marketing communications.

The aim of the article

The main goals of our research are to investigate the basic components of marketing communications and to determine the peculiarities and prospects of marketing communications activities in Ukrainian agricultural enterprises.

Main research results. Ukrainian agricultural sector is the base of the national economy. It forms the foundations preserve the state sovereignty, including foodstuffs, within certain limits, economic, environmental and energy security and ensures the development of technology related with sectors of the national economy.

Therefore the question arises about effective methods of communication policy of enterprises of the agricultural sector, requiring further, deeper investigation. This is due, primarily, with features macro environment of the agricultural sector in Ukraine:

lack of purposeful stimulating effect on economic activity;

seasonality, climate change (innovative rainfall throughout Ukraine, shift time limits the growing season and the unusual temperature fluctuations);

instability of political-legal and economic environment;

worsening demographic situation in the countryside;

growth of cultural consumption of foodstuff;

impact of scientific and technological factors (the degree of innovation in production, the level of state support for science) and others.

Thus, there is an urgent need for the development and implementation of control mechanisms which will enable to perceive changes in the environment of enterprises' functioning, recognize it and adjust its activities according to the actual conditions that, in turn, must ensure its effectiveness. One of these mechanisms should be a marketing communication policy of the company.

Modern agricultural enterprise has at its disposal various tools of marketing communications such as advertising in mass media, sales promotion, public events (exhibitions, conferences, presentations, etc.), personal selling, direct marketing, public relations. Each has its own purpose and aimed at specific target groups:

Advertising: goals are to information, to create a favorable impression of the product, to effect on consumers; target group is segments of consumers.

Promotion: aims are intensification of goods network, activation of consumers support, the support of advert, getting rid of surpluses; target group are buyers and intermediaries.

Individual (personal) sale: task is detailed information; target group are consumers and agents or brokers.

Public relations, publicity: goals are publicity, transparency, creating popularity, product information, development and protection of the image; target group consist of consumers, agents, servants or all public.

Direct marketing: goal is promotion of goods and services; target group is personally known as consumers.

Exhibition and trade fairs: goals are to attract attention to the product, informing the public and to support a reputation; target group consist of a segment of consumers.

«Partisan» communication: goals are primary attention, motivation to purchase and awareness; target group consist of a segment of consumers.

Unplanned communication: there are no goals, a target group consist of consumers, agents, servants, and all public.

All of the above creates conditions for using marketing communication for the collected forms of interaction complex system which called integrated marketing communications, for the creation of which the manager must achieve synergy effect scilicet mutually reinforcing of each product marketing communications which should properly be combined. Any extrapolation transferring past experience, excluding current trends doomed to failure.

Today more and more agricultural enterprises try to use integrated marketing communications system. It requires careful analysis work of all communication channels to create in a consumer a clear, coherent and convincing imagination about enterprise and products which its produces. At the fore comes out careful planning of each step of moving goods to market, capital investment in its support and development at each stage of the life cycle. Internal communication policy primarily adjusted for effective realization of external communication tools. Thus, marketing communications are very important for modern agricultural enterprise and occupy a central place among the means of competition.

It should be noted that the significance of the various tools marketing communications in consumer and agricultural markets are different: while in the process of promoting consumer goods, advertising and sales promotion have a key role, then when promoting goods production and technical purpose they concede personal sales [7, p. 48].

The comparative analysis of using unconventional tools of marketing communication by agricultural enterprises is showed that in general, it's using impractical, and some unconventional methods of promotion (marketing of horror, parasitic marketing and quarrel's strategy) which are unsuitable for agricultural enterprises. Promotion tools also share on personified and mass. Personified include a personal selling and direct marketing, and some synthetic instruments that provide personal contact with consumers. As for mass, its combine media promotion tools, sales promotion and other tools designed for a mass audience. Rapidly changing external environment necessitates the reassessment of the significance of marketing communications tools. The research work of leading foreign scientists indicates the transition from mass marketing to establish close personal ties to a specific target audience on micro markets (Table 1).

Table 1

In the process of promotion production of agricultural enterprises personalized tools takes a particular meaning, because the production of agricultural enterprises has compound characteristics and, as a rule, high cost, that causes the need for the presentation, the preliminary negotiations before signing the agreement. In such circumstances an exhibition as a synthetic means of promotion, which suggests the existence of a dialogue of the enterprise with the target audience, and also allows the use of other means of promotion during the event is actual. The most controversial is the classification of tools marketing communications for ATL, BTL and TTL, because so far there is no clear separation of tools between these groups. Issues of using BTL advertising and definition components of complex BTL-events are devoted to the research of some domestic and foreign scientists. We can determine the following positions considering this information [8, p. 32]:

ATL-communication is a traditional unilateral influence on the consciousness of consumers without its inclusion in the dialogue with the seller of the goods;

BTL-communication is “a part of a long-term strategy exit to market” through sales promotion, direct marketing, public relations, exhibitions and advertising in the Internet;

TTL communication is a modern interpretation of the concept integrated marketing communications that formed by means of using ATL and BTL.

Foreign authors understand BTL as a part of promotion, public relations in a broad sense of this word, or non-standard tools of marketing communication [7, p. 50]. For differentiating the tools of marketing communication into ATL, BTL and TTL it is necessary to outline the criteria for the distribution. Summarizing the scientists' researches, who have studied these issues, can be identified the following criteria:

the direction of the impact (unilateral or bilateral according to the availability of the dialogue between the consumer and the seller);

the character of the impact (mass or personalized impact on alas customer);

prevalence rate (using traditional advertising or non-traditional tools of marketing communications);

period of exposure (short-, medium- or long-term).

Having analyzed essence of a generalized classification tools of marketing communications, we had been offered determine the ATL, BTL and TTL according to the following criteria (table2).

Table 2

Criteria for determine the ATL, BTL and TTL communication

According to differentiation of the tools promotion to the basic tools of marketing communications can be attributed advertising, public relations, sales promotion, direct marketing and personal sales. But branding, exhibitions, fairs, integrated marketing communications on-site sales and marketing events can be included up to synthetic tools of marketing communications [4]. In view of the specifics of the sale agroindustries' products the whole range of existing tools communication is inappropriate to use, for example, integrated marketing communications at the point of sale (merchandising) and direct marketing (sale of products for industrial purposes in the field of virtual space are not possible). It should also take into consideration the purpose for which exact marketing communications tools are used. Basic tools for the purpose of promotion are different: advertising is used for strengthen the brand; public-relations are used for creating a positive image, sales promotion and direct marketing - to sell products. Most the varieties of synthetic instruments triggered on the sale of products other than branding, which provides for a set of measures for formation and strengthening of the brand. So, defining features of the agricultural products and destination tools marketing communication, we can single out a list of tools that can be used for the promotion of agricultural enterprises:

direct selling, sales promotion are for product sales, and advertising is for enhance branding, public relations is for image formation, elements of direct marketing is for inform on the quantitative and qualitative characteristics of goods, terms of its sale etc.;

synthetic toolkit: exhibitions, which are used to ensure product sales in the long term, provides the conclusion of the relevant agreements, fairs are for sale of products to achieve results in the short term, meeting related with events are seminars, conferences, organization of holidays and other events, which

depending on their nature can be resulting in different levels of management, and branding is for to create and strengthen the brand of the enterprise. Formation of indicators' assessment system of efficiency in the complex synthesized marketing communications requires availability of a comparative base, which is a set of promotion tools integrated according to the types. At each level of management is advisable to use different types of marketing communications which cover a wide variety of toolkit and forming necessity of a separate scorecard for each of the levels.

The classification of effectiveness' indicators depending on the types of marketing communications includes the following groups of indicators:

ATL-communication is a massive traditional tool of promotion, which has a lasting impact on the target audience. To assess it is advisable to use such indicators as: quantity of ads contacts, gross rating coefficient, the advertising cost per thousand contacts, with a net reach, average frequency of advertising exposure, frequency of the function responses, effective reach, effective frequency of advertising exposure, share of advertising impact, click rate, a cost of click, a cost of the order, a cost of attracting per customer, a number of views, a number of visitors, a number of visitors per a certain period of time, a share of refusals.

BTL-communications are a set of personalized non-traditional tools that assume the existence of a dialogue of the consumer and the seller, and are most effective in the medium term. To assess it is advisable to use such indicators as: a basic sales volume, an incremental sales volume (rise due to sales promotion), a indicators of repayment, a percentage of sales from bonus of coupons, a percentage of sales at reduced prices, an average level of preferential agreements, shifting of costs, cascade of prices;

TTL-communication is a form of communications, which covers modern toolkit of promotion and used to obtain an immediate effect with the synthesis of traditional and non-traditional promotion tools. The results of the TTL measures reflected in the profitability of the enterprise in the short term and also on indicators of coverage of the target audience. So, for assessing the effectiveness of TTL communications may be include the following indicators: profit per unit of production, a coefficient profit, a profitability of sales in various distribution channels, fixed and variable marketing costs, a specific gross profit, marginal profit, forecast and actual coverage of the target audience.

A marketing audit, a qualitative assessment of the promotional campaign, a quantitative assessment of both individual events and communication campaigns in general are the methods of research efficiency of integrated marketing communications, which use the integral indicators of measure the performance of each of the types of integrated marketing communications (ATL, BTL and TTL communication).

The bases of any system of indicators of effectiveness are such concepts as the performance criteria and the performance indicator. In our opinion the essence of these indicators in terms of communication policy are as follows:

a performance indicator is a parameter quantifying the performance of individual activities of integrated marketing communications or promotion of the enterprise in general;

an evaluation criterion of effectiveness is a definition of an entity, the component parts and limits of effectiveness' indicators of individual event communication or complex of enterprise promotion.

Conclusions

Examining the marketing communications in general and in particular in agriculture, we can tell that in developing complex products promotion it is necessary to use an integrated approach to marketing communications.

It is necessary to take into account all the basic tools of promotion, but the emphasis make on a personal sales and direct marketing. Don't forget also about effective advertising campaign, in order to increase sales and properly designed elements of public relations according to form consumer loyalty to the company and its products.

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