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Файл:Basics of entrepreneurship in the motor transport industry. Study guide
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of which detailed advertising information is placed. Posters are classified as
printed advertising if they are distributed to potential consumers or hung in
office premises. In other cases, they are considered a means of outdoor
advertising [41].
Gift advertising publications (branded calendars, notepads, notebooks,
diaries, business cards) are mainly distributed during conferences, business
meetings, negotiations, etc., but can be sent by mail in the form of greeting cards
designed in the appropriate corporate style.
Screen advertising is one of the types of audiovisual advertising. It
includes advertising films, advertising videos, video express information, and
slide films.
Radio and television advertising is carried out in the form of radio and
television announcements read by announcers; radio commercials – game radio
stories that convey advertising information, often in the form of a dialogue and
with musical accompaniment; TV commercials – short, up to 2-3 minutes long,
TV programs (game or cartoon) in the form of scenes with a witty plot, shown
between different programs and in the middle of them. This type is not used by
the organization due to the lack of local television and radio.
Exhibitions and fairs are included in one group not so much because they
are united by a common feature (public demonstration of advertised products)
but due to the differences between these concepts are increasingly disappearing.
A significant number of fairs and exhibitions are held in the field of
transport equipment and technology, progressive methods of transport services
for cargo owners and the population.
Exhibitions can be stationary and traveling. Depending on the frequency
of their holding, the distinction is made between one-time exhibitions, periodic
(repeating after a certain period of time), and permanent exhibitions.
Advertising souvenirs are items of relatively long-term use, designed
using the advertiser's corporate symbols. They are designed to make an
impression not only at the time of presentation, but also during storage and use,
as well as when demonstrating them to third parties.
Advertising souvenirs can be intended for mass distribution, primarily at
exhibitions, fairs, extended conferences, and other public events, or for
individual distribution during business meetings and other events involving
a narrow circle of partners and potential consumers.
Direct mail advertising is the sending of advertising messages to a specific
group of consumers or potential business partners. These messages can take the
form of advertising and information letters (both printed and audio on disks) or
targeted printed materials with a set of various publications about the product
and order forms, as well as with attached souvenirs.
Outdoor advertising is designed to be perceived by a wide range of
people, so it is usually placed in crowded places. This advertising must meet the
following requirements: be seen often; attract attention; be extremely brief; be
easy to read on the go; be understandable.
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The size of advertising materials, images on them and fonts for
inscriptions must be selected taking into account the distance at which the
advertising is supposed to be perceived.
There are several types of outdoor advertising. One of the groups of
advertising media is made up of billboards, posters, playbills, panels (colorful
images occupying part of a wall or ceiling), portable signs (stands), panel
brackets attached to a wall, column, or pole, roof installations, multivision
installations (rotating polyhedrons).
They are placed on streets and squares, along highways, in stadiums, fairs,
exhibitions, and other crowded places.
The placement of outdoor advertising along communication routes in
Russia is regulated by law.
Outdoor advertising should not resemble road signs and pointers, impair
their visibility, or reduce traffic safety. Distribution of outdoor advertising is
permitted with the permission of local governments and in agreement with
specialized services.
A special type of outdoor advertising is advertising media on transport.
Some marketologists consider transportation advertising as a separate type of
advertising. Advertising messages can be placed on vehicles, in the interiors of
vehicles, at railway stations, platforms of stopping points, in the right-of-way of
railways, in seaports, on piers, at airports, and at public transport stops.
According to the legislation of the Russian Federation, distribution of
advertising on vehicles is carried out on the basis of agreements with the owners
of vehicles or with persons who have property rights to these vehicles.
Such advertising can be placed in the form of images and inscriptions on
the sides and outer surfaces of the bodies of rolling stock.
For example, the «Mig» company uses outdoor advertising on the side
surfaces of taxi bodies, where the company name and telephone number are
indicated.
Advertising placed outside of vehicles is subject to different requirements
compared to advertising placed inside these vehicles and at the points of
boarding, disembarking, and transferring passengers. Advertising outside of
vehicles must be bright, extremely brief, and easy to read while these vehicles
are moving. With other types of advertising on transport, it is possible to hold
the attention of passengers for a long time, and this should be used to
disseminate detailed advertising information.
Some marketing specialists consider public relations («PR») activities
separately from advertising, as a direction of communications policy that has
independent significance. Meanwhile, although the development of public
relations sets itself a wider range of strategic tasks, many of the measures in this
area have a clearly expressed advertising focus.
Computerized advertising is a means of disseminating advertising
information that is placed in the databases of specialized computer systems (the
Internet, various software products).
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When managing advertising activities, it is necessary to remember that in
the current conditions, advertising is one of the largest sectors of the economy,
uniting hundreds of thousands of advertising agencies and bureaus, employing
millions of employees. The efficiency of the country's economy as a whole
depends to a large extent on how effectively this system operates.
These few facts alone testify to the urgent need for effective management
of advertising activities, the importance of making optimal management
decisions, about the colossal level of losses as a result of mistakes in this area,
because it occupies a significant share in the enterprise's cost system.
The problem of advertising management can be considered from different
angles. One of the aspects of this problem is the system approach. From this
point of view, advertising is considered as one of the functional subsystems of
marketing. Marketing, in turn, is one of the components of a larger system – the
general system of functioning of the company as a whole. In this regard,
advertising management must be understood as an integral element of the
communicator's marketing management system in close interconnection and
interdependence with other elements of marketing activities (product, pricing,
and sales policies).
On the other hand, advertising management can be considered as
a process of interaction between the main participants in advertising activities.
The subjects of advertising management (i.e. the participants making
management decisions in this area) are the top management of the transport
company, the line and functional managers of its marketing service, the
employees of the advertising departments, etc. The objects of management (i.e.
those at whom management decisions are directed in order to achieve a certain
result) can be considered potential consumers, trade intermediaries, general
public opinion, etc. The objects are influenced by advertising messages,
advertising campaigns, and the advertising policy of the communicator as
a whole.
Equally important in the analysis of advertising management is the
functional aspect. Among the main functions of management, defined by the
classic of management Henri Fayol, we will name the following: advertising
research; goal setting or planning; organization.
Summarizing briefly and defining the advertising management system, it
can be presented as a complex of elements, participants, processes, and
techniques for determining goals, organizations, control, and advertising
research in a single system with other elements of the communicator's
marketing.
To implement the functions of advertising management, it is necessary to
conduct research and planning.
Advertising research is the systematic collection and analysis of
information, the special purpose of which is to facilitate the development or
evaluation of advertising strategies, advertisements and bumpers, as well as
advertising campaigns in the media. In essence, it is a type of market research
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and market activity opportunities, or marketing, such as market research, which
is a simple collection of information about a specific market. The main stages of
research are the definition of problems and research objectives.
An advertising campaign aims to forecast future demand for goods or
services of a particular company and create conditions for implementing this
forecast. Like any other area of economic activity, it must be planned, and the
effect must cover the costs of the advertising campaign.
The effect of advertising is a consequence of its influence on sales
volume, income level, and other performance indicators of a transport company.
The volume of this effect is immeasurably higher than the cost of advertising. Its
exact definition is almost impossible, but even the most approximate estimates
allow us to talk about the colossal size of this effect.
It is no coincidence that scientists who devote much time to the issues of
economic evaluation of advertising consider them to be the most difficult to
resolve. Advertising expenses for most companies are becoming increasingly
significant. In many cases, advertising is the largest item of marketing expenses.
Whatever they say, no matter how they improve advertising, ultimately all
these efforts come down to increasing the efficiency of this powerful tool for
shaping demand and people's tastes. In some cases, advertising costs are the
largest item of expenditure in the budget of the marketing activities of
a transport company, so it is very important that advertising is efficient. The
company cannot and does not want to stop advertising, but it wants to know
what exactly it gets for its money and whether its advertising works.
It is necessary to constantly check the advertising being carried out. To
measure its communicative and sales effect, researchers use several verification
methods: measurements of communicative effect, measurements of sales effect.
Measurements of communicative effect indicate how efficient
communication is provided by the advertisement. This method, called text
testing, can be used both before placing an ad and after its publication or
broadcast.
Testing is the main tool at the disposal of a transport company, allowing it
to verify the viability of advertising expenses. Testing helps to avoid mistakes in
choosing an advertising strategy and media. It also allows a transport company
to judge both the sales results and the degree of effect of an advertising
campaign.
Pre-testing is a stage of advertising research used to increase the
probability of creating truly efficient advertising messages. Testing helps the
transport company identify and eliminate communication flaws in the content of
advertisements that could lead to a lack of impact on the consumer or cause
a negative reaction, such as choosing another transport company.
There are several methods of pre-testing.
Print advertising. Direct questions are asked about the advertisements. It
is often used at the initial stage of development to test the effect of alternative
options.
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Broadcast advertising. Test commercials are shown on a projector in
a location such as a shopping mall. Questions are asked before and after viewing
to determine awareness of the service and to identify weak points in the
commercial.
Physiological testing. The dilation of the subject's pupil is measured,
which suggests a reaction to the illustration, and brain response is analyzed. The
authors of this approach believe that brain waves indicate a favorable or
unfavorable reaction to the advertisement.
None of these methods is the best way to pre-test the quality of
advertising elements. Different methods test different aspects of their effect, but
each has its own special advantages and disadvantages.
Another stage of advertising research, post-testing, is used to determine
the effectiveness of advertising campaigns after they have been conducted. The
data obtained during post-testing serves as valuable information for the transport
company for future advertising activities.
Post-testing is usually more expensive and time-consuming than pretesting, but it allows the impact of advertisements to be tested in real market
conditions, without the artificially created conditions of pre-testing. A transport
company can benefit from both pre-testing and post-testing by «running» the
advertisement in some selected markets before launching the advertising
campaign on a larger scale. The purpose of these tests is also to compare the
ratings of the company for services and other characteristics with the position of
competitors.
Post-testing methods are memorability test; prompted survey; unprompted
survey; test of changes in personal attitudes; control of additional demand;
control of sales level, etc.
Each of the post-testing methods offers the transport company special
opportunities to study the degree of impact of its advertising, but at the same
time each of them has its own limitations.
To summarize, it can be said that transport companies use special tests to
determine the effect of an advertising campaign. Pre-testing is used to identify
and eliminate «weak» spots in an advertising campaign. Post-testing is used to
determine the effect of an already published advertisement or an already
conducted advertising campaign [5-14].
5.3. Business plan of a motor transport enterprise
Here is a typical structure and stages of business plan development.
The purpose of developing a business plan is to plan the company's
economic activities for the near and distant future, in accordance with market
needs and the ability to obtain the necessary resources.
A business plan is a farsighted document; and it is recommended to draw
it up for 3-5 years in advance. For the first and second years, it is
recommended to provide the main indicators in a quarterly breakdown (and, if
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possible, even in a monthly breakdown), and only starting from the third year
can we limit ourselves to annual indicators.
Chapter 1. Concept and essence of a business plan
1.1. Tasks and functions of a business plan
A business plan is a document that formulates the goals of an enterprise,
provides their justification, determines the ways to achieve them, and the funds
necessary for the implementation and the final financial indicators of the work.
The need for a business plan arises when implementing tasks:
– to determine specific areas of the company's activities;
– formulate the long-term and short-term goals of the company, the
strategy and tactics for achieving them;
– determine those responsible for implementing the strategy;
– prepare applications from existing and newly created private and joint-
stock companies for loans;
– justify proposals for the privatization of state-owned enterprises;
– open a new business and determine the profile of the future company,
the main strategy and tactics for achieving it; determine the persons responsible
for implementing the strategy;
– select the composition and determine the indicators of goods and
services that will be offered by the company to consumers; estimate the costs of
their creation and sale;
– identify the compliance of the company's existing personnel and the
conditions for motivating their work with the requirements for achieving the set
goals;
– determine the composition of the company's marketing activities
for market research, advertising, sales promotion, pricing, distribution
channels, etc.;
– assess the financial position of the company and the compliance of
the available financial and material resources with the ability to achieve the
set goals;
– identify difficulties that may interfere with practical implementation on
an annual basis.
Any plan is based on a business idea, i.e. a general idea of what should be
done. A business idea is just the very beginning of the path to a business plan,
but the success of a business depends very much on the right choice of
a business idea. Only a very experienced and competent businessman can make
a business profitable based on almost any business idea. It is very important for
a beginner to choose a successful business idea.
First of all, a business idea is recognized as successful if it finds an
unoccupied niche in the market and is ingenious. It must meet the following
requirements: the customer must need your product or service, if the customer
does not need the product, there is no business; customers must be ready to pay
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your price for the product; it is necessary to take into account the fact that
people do not change their habits abruptly, so a successful business idea should
not be «too» original.
All types of business plans can be grouped into four main categories:
1. Business plan of an investment project. It assumes that you will invest
money, so special attention should be paid to the payback period of investments
and determining profitability indicators.
2. Internal business plan of the enterprise. It is developed for a period of
one year to exercise control over the existing enterprise. Particular attention is
paid to forecasts of product sales indicators. The internal business plan or
production plan is updated monthly, taking into account the actual data obtained
during the company's operation.
3. Business plan for the company's development. It reflects the main
directions in which the company is developing, and ideally it should be drawn
up annually. In a particular case, this may be the development of new sales
markets, the launch of new products or technical re-equipment.
4. Anti-crisis business plan. It is aimed not at developing the business, but
at saving it. In the process of its implementation, the enterprise can completely
change its profile. One of the reasons for this may be changes in the market,
when the company's products are losing demand and a quick transition to the
release of a new product is required.
The full volume of the business plan usually takes 40-50 pages and
requires 250-300 hours to develop. In recent years, at the stage of searching for
a partner or investor, a compressed version of 4-10 pages has begun to be used,
which, if there is interest, is supplemented by a full document.
At the moment, there are no specific methods for preparing a business
plan, but in accordance with UNIDO standards, the general structure of
a business plan should adhere to the following main sections.
1. Summary. It is located at the beginning of the document and serves to
briefly reflect the main ideas and parameters of the business plan. It should be
written last. The summary determines whether investors will read the entire
business plan or not. Therefore, write a bright, catchy summary, describe in
colorful terms what benefits investors will receive if they undertake financing
your business plan.
2. The title page of the business plan. The more professionally it is
drawn up, the better impression the project itself will make. An expert who
works with business plans regularly will immediately see the quality of the
design. The title page should contain: the name of the enterprise; the period for
which the business plan is drawn up; the full name and position of the author;
the coordinates and contact information of the company; the date of drawing up
the business plan.
3. A confidentiality memorandum. It is designed to protect the
copyright of the developers of this business plan and can be placed on the title
page, if it is short enough, or on the page following the title page. It contains
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a reminder that the person familiarizing themselves with the business plan
assumes responsibility and guarantees non-dissemination of the information
contained therein without the prior consent of the author. It may prohibit
copying the entire business plan or its individual parts, or transferring it to third
parties. It may also contain a requirement to return the business plan to the
author if it has not generated interest.
4. Table of contents of the business plan. For ease of reading, it is
necessary to divide the business plan into main sections. With the help of the
table of contents, each reader will be able to immediately find the section that
interests him.
5. The purpose of the proposed project. This section of the business
plan should contain: a description of the goods or services that you want to offer
your future customers, and for the sake of which the entire project is conceived;
an approximate estimate of the price at which your product should be sold; an
estimate of the costs that will be required to produce the product; an
approximate amount of profit that each unit of product will bring; organization
of service for your product, if it is a technical product.
When developing this section of the business plan, the product or service
manufactured by the enterprise is described in great detail. It is necessary to
indicate the name of the product, its distinctive features, competitiveness, degree
of readiness for production, safety, environmental friendliness, as well as the
pricing concept.
6. Analysis and assessment of the sales market. This section of the
business plan should contain: a description of the consumers of products and
services; market size and possible development trends; competitor
assessment; assessment of your own strengths and weaknesses relative to
your competitors.
Studying competitors is a complicated and time consuming stage of
drawing up a business plan. It is necessary to carefully study and evaluate all the
nuances of your competitors' work. Understand the specifics of working in this
area and implement in your business all the best that you have learned from
competitors.
7. Marketing plan. The task of marketing is to determine the consumer
qualities of the product and figure out how to present it all to customers. The
information in this section should convince a potential consumer of the business
plan of the existence of a sales market for the subject of planning and the ability
of the persons implementing the project to sell it. In this section of the business
plan, you need to describe: how you are going to sell your product – through
your own branded stores or through wholesale organizations; how you will
determine the prices for your goods; what level of profitability on invested funds
you are going to achieve; how you will organize advertising and how much you
are going to allocate for it; how you will achieve constant sales growth – by
expanding the sales area or by finding new forms of attracting customers; how
you will organize the service department, and how much money you will need
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for this; how you will achieve a good reputation for your products and the
company itself in the eyes of the public; information on the assessment by patent
experts of the patent purity of these products in the countries where you are
going to sell them.
8. Production plan. This section of the business plan should describe all
production and other work processes. It also considers all issues related to the
premises, their location, equipment, and employees. This section should reflect
the questions of how and in what time frame the volume of production can be
increased or decreased. A useful element in this section of the business plan will
be a flow chart at the enterprise: where and how all types of raw materials and
components will come from; in which workshops and how they will be
processed into products and how these products will be delivered from the
enterprise. Pay special attention to monitoring everything related to production.
In the business plan of a motor transport enterprise, it would be appropriate to
include a calculation of the production program for the transportation of goods
or passengers, a calculation of the technical and operational indicators of the
vehicle, and a calculation of the transportation program (transportation
capabilities) of the motor transport enterprise. Production planning is also
considered (the need for vehicles required to transport a specific type of cargo is
calculated using formulas).
9. Organizational plan. This section of the business plan reflects all
organizational ties with partners, founders, and justifies the organization of
production activity. It should reflect the legal form of ownership of the
company; the organizational structure of the company; distribution of
responsibilities; information about partners; description of the external business
environment; human resources of the company; information about members of
the management team.
Also, for a motor transport company, it is reasonable to provide a calculation
of the annual working time fund of one driver per day in this section.
10. Financial plan. This section of the business plan should summarize
the materials of the previous parts and present them in monetary terms. The
purpose of the financial plan is to prove the efficiency of the project throughout
the entire implementation period. When drawing it up, a forecast should be
given broken down not by years, but by months. If the payback of the project is
planned for several years, then the first year should be shown with a monthly
breakdown, and the following ones – by quarter. At the same time, it is
necessary to clearly mark the point of «return» – the beginning of the return on
invested funds and the planned period for the full return on investment. This
section of the business plan should contain income and expense plan; plan of
cash receipts and payments; consolidated balance sheet of the company's assets
and liabilities; break-even point schedule; financing strategy (sources of income
and their use); risk assessment and insurance.
11. Appendices. This final section of the business plan may include all
documents that are not the subject of planning, but are referred to in other
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sections: copies of contracts, licenses, etc.; copies of documents from which the
initial data was taken; supplier price lists; tables of calculations of financial
indicators not included in the main sections.
A professional business plan is exactly what any successful business
project begins with.
A business plan is developed in several stages:
Preparatory stage. At this stage, the goals of creating the document, its
purpose, deadlines, responsible executors of sections, the need to involve
specialists from other organizations, the work schedule, and the budget are
determined.
The preparatory stage can be divided into a number of steps:
– defining the goals of writing a business plan;
– determining sources of information;
– precisely defining target readers;
– establishing the general structure of the document.
The stage of developing a business plan by sections, their arrangement,
and consolidation into a single interconnected document. The second stage can
also be divided into a number of steps:
– collecting information;
– directly writing a business plan.
Before drawing up a business plan, it is necessary to collect all the
necessary information. Having the necessary information, the project manager
can assess the viability of the concept of the new project even before drawing up
a business plan.
The necessary data can be obtained by contacting the relevant
organizations or conducting your own research. The source of information can
be publications of industry associations, government reports, articles in
scientific journals, Internet information.
The second step is recommended to be carried out with the direct
participation of future project executors (the initiators of its writing). This is
necessary so that the entrepreneur has a more systematic and complete
understanding of the strengths and weaknesses of their organization, the
main areas of its activities, and the real chances of implementing this
business plan.
The stage of discussing the business plan. The managers, leading
specialists of the structural divisions of the enterprise, consultants of third-party
organizations and authors of sections study and summarize all the reviews and
prepare a reasoned conclusion for each justified comment. After a joint
discussion, the draft business plan is finalized, discussed again, and a decision is
made on its further adjustment or on the development of a new version.
Final stage. At this stage, the final version of the business plan
is prepared; it is approved by the management of the enterprise and
transferred to all interested organizations and persons (shareholders, potential
investors, etc.).
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