Presentation of the project

1. Presentation of the project “Choice of effective measures and methods for sales stimulation as factors of business activity growth as an example of “Machinery factory 342”

2. The subject of the study: Revealing more effective methodsof trade stimulation as an example of “Machinery factory 342”

3. Tasks of the project • Definition of theoretical aspects of the market. • Analyzing the sale activity at the “Machinery factory 342” • Revealing and recommendations for the development of effective methods of stimulation.

4. Introduction In today’s economic situation the problem of goods and service sale, and correspondingly gaining profit is crucial and important. Effective methods of stimulation and application of different forms of advertising are actual for domestic enterprises and businesses. Still, many companies often spend unreasonably much money on advertising of their product. And of course such policy may bring to negative results.

5. From the history of the Machinery factory 342 “Mechanical factory 342” started its activity in 1946. From small workshops to modern they have transformed into modern and developing company. In 1950s it was producing only boilers, and since 70s it has been producing constructions for anti-rocket systems of defense. By the opening of the Olympiad 1980 the factory had produced metal constructions for football and athlete complex and multi-purpose sport hall. In 80s the factory put into production small-scale sewerage systems. In 1995 it started the production of press-vibrating items according to technology and equipment of German company “HENKE”, which is one of the world leaders on production lines and construction engineering. The produce of the factory meets the demands of the world market and has high level automation system. The clients of the factory are building offices (52%), private firms, also individuals (48 %).

6. Ideas, aims and the role of trade stimulation in market policy For more or less successful operating of the business on the market except trading and price policy, it’s very important to follow available and trading policy. To stimulate trading means to inform future customers (buyers) about your business, goods and services offered. It also involves transport, storage, safety, recovering, promotion of the goods, delivery to retail and wholesale firms, the selling itself. Thus, selling is a system of all means carried out after the produce has been exited.

7. Complex Program for market stimulation (CPS) CPS involves the following activities: The participant of the market decides how intensive should be stimulation; Who can take part in the program; How to advertise the stimulating actions; How long it will continue since it started; What means should be chosen for it. Trade stimulation means: Price stimulation; Real offers; Active offers. The instruments for stimulation can be: Rewards added to the salary; Premium for achieving significant results; Gaining points some of which are possible to change for valuable gifts; Tours for traders having gained great success in their activity.

8. Market policy of the factory The development and application of new methods to stimulate selling of goods is carried out by special department aimed to advertising not only each commodity but also its brands and the produce. In the whole for this purpose the Factory 342 has to direct its market policy to fundamentally vital interests of the customers. The tasks of advertisement period depend on the seasons. Thus , in winter the ads are mainly of mentioning character, while in other times of the year they are exhortative.

9. Marketing policy Marketing policy of the company involves the following organizing actions: • Prices kept stable; • Spendings on advertisements are unlimited; • Growth of trade stimulation; • Wide scope of sellings; • Searching the new segments on the market. The important part of advertising policy is its planning. The expenses an advertisements are planned on the basis of percentage deductions from the planned profit. It counts to 10%.

10. The role of ads in business Advertisement is any paid form of impersonal presentation and promotion of ideas, goods and services which is the most important factor in goods trading. The goal of the company are: • Scoping of the local market ; • Public selection; • Low price policy. The company tends to low the expenses on the advertisement of their produce; • To create close contacts with customers.

11. The most effective means of advertising Television. This mean of ads has always been overloaded by different kind of information. It has low affect on the customers and zero trade effectiveness. Radio. Actually radio satisfies the firms’ demands not badly and serves as a good reminder about the business and contributes to customer’s attention. Fairs and Exhibitions are effective means to advertise goods differently. Newspapers are the most effective means of ads. The customers are usually used to apply to the information given in newspapers. Leaflets. These means have been used for advertising the goods only recently and are mostly effective. Bill-boards. A new mean for advertising. The external view of boards is easy to remember, frequently used in business. They are also profitable.

12. Chart 3. «Making budget». Leaflets 6 500 Newspapers 1 900 Bill-boards 10 000 Ads 250 000 Radio 66 280 Exhibitions 115 320 Television 5 000

13. The ways to decrease the expenses and increase the effectiveness of advertising.Recommendations: 1. Television as a low-effective mean to stimulate business should be excluded wholly. 2. Radio can be used only in winter time to remind and attract the customers to the goods produced by the company. Such change will really bring to decreasing the expenses on ads twicely. 3. Fairs and exhibitions are rather often used in advertising campaign of the company but expenses on them should be the same. So, the company should accept that to use leaf-lets for advertising the produced goods and services must be widely used. The expenses on this type of ads are possible to be increased to 25-30%. This way of advertising the goods won’t involve additional expenses if it’s carried out simultaneously with radio ads. It is reasonable to use street ads as means of sales stimulation.

14. Conclusion Contemporary market demands are rather greater than just producing good commodities to fix attractive price and make them available for customers. In terms of economic and financial crisis the competition among the producers of the same goods aimed to attract more and more clients or customers is becoming crucial. Henceforth to become profitable the companies should choce and use the most effective means of trade stimulation.