Unit 7.3 Advertising

Before selling the goods, you must do a lot of market research first. The information needed can be obtained from Russian embassies, consulates, and trade representations, from the RF Chamber of Commerce and Industry and from the All-Russian Institute for Scientific Market Research, from trade associations and trade journals or from specialized consultant companies (who will do a professional market research job for you for a fee).

The information you are interested in is if there is any demand for your goods, what the market potential is, what sort of competition you will meet, i.e. how the price of your goods compares with other competitive products including those produced locally, local conditions and preference, local trading customs and habits, what seasonal factors should be taken into account and the like.

But in general marketing covers not only market research, but also planning the selection (assortment) of goods, and consequently the production itself, price policy, advertising and promotion of sales, controlling the sales and post-sales servicing.

So marketing is a system of running all the business activities of a company (organization) in respect of coordinating supply and demand for the goods produced. Originally marketing was meant to help avoid over-production in advanced capitalist countries.

Marketing may within the framework of socialist economy as well enable to co-ordinate production and goods circulation (consumption of goods) for the purpose of using all the resources for the benefit of people and for covering in the best possible way all their needs (requirements).

Advertising is an important means of promoting the goods that are being produced already as well as new lines in business.

There are specialized firms dealing with advertising. In our country it is V/O "Vneshtorgreklama" ("Rosvero"). Different kinds of mass media - TV, radio, newspapers, cinema, journals, magazines, posters, -are used for advertising goods. Special leaflets, booklets and other printed matter about the goods may be published for the same purpose. Participation in fairs and exhibitions helps promote our goods as well. Also, special advertising conferences may be held. The choice of media for advertising depends on the kind of goods and on the local conditions and people's habits: sometimes TV and radio ads are best, in other cases it may be trade journals or leaflets distributed among potential buyers.

Pay attention to the following business letter as a sample of advertising:

FIRM OFFER FOR TRACTORS

Mr Nasser, Lipetsk, 10th Dec,

the Egypt Machines Inc.,

Egypt.

Dear Sir,

In reply to your enquiry of the 3rd of December for our Tractors LTZ-145 we are happy to inform you that we can make you a firm offer subject to your acceptance until the 25th of December.

Tractors are delivered with all the accessories needed.

You must be aware that it is not in our practice to allow any trade discount, that is our price does not include any trade discount, nevertheless if you pay in cash, you will be granted a discount of up to 20 per cent off the price indicated in the pricelist. The amount of the discount depends on the number of tractors you are going to order.

We hope that you will be pleased both with the operation and performance of Tractors LTZ-145 and will place further orders with us.

For your information we would like to point out that a new model of Tractors LTZ-155 is being developed which will have a number of advantages as compared with the old one and will embody the latest achievements in tractor-building. We hope to put it into production late next year.

If you want to have any further information, please do not hesitate to contract us.

We are looking forward to hearing from you soon.

Yours faithfully,

R.Popov

Sales Manager