"Philip Morris sales and marketing" LLC: accounting and financial analysis. Report on intended use of funds

IN Leningrad region and in 2018 the results of the project were summed up.

Project objectives

According to the terms of reference of the RST-Invent project, it was necessary to develop, manufacture and implement a number of RFID solutions that would help control the compliance of the components supplied to the assembly line with the type of product being manufactured in real time. Human participation had to be minimized by technology in the production process. Full integration of the software and hardware complex being created with the control system was assumed production process customer.

Project progress

As part of the project, the RST-Invent company has implemented a number of customized RFID solutions in the customer's assembly lines. They made it possible to monitor the compliance of the components online and eliminated the influence of the human factor on the quality of tobacco products produced by the enterprise. Full integration of the developed solution with the client's MES system was also carried out.

How the system works

To control the correctness of the supply of semi-finished cigarette filters to production lines, the system developed by RST-Invent uses RFID tags attached to a plastic or cardboard tray.

The system assigns a code to each tray when it is filled with semi-finished filters. To do this, all production lines that produce semi-finished products are equipped with RFID modules that automatically write the identifier into the memory of the tray's RFID tag, based on the job received from the MES.

The identifier not only uniquely identifies the type of semi-finished product in the tray, but also contains a code for a specific type of future cigarette filter.

Control of the correctness of semi-finished products supply is carried out at the site of receipt of trays of finished cigarette filters to production lines. RFID readers installed on the lines compare the filter code in the RFID tag with the code received from the MES system.

If the codes match, the semi-finished products are recycled. In case of an error, the line is automatically stopped, semi-finished products are not loaded, and the operator receives a warning in the form of a light signal.

If it is necessary to repack a semi-finished product from a cardboard tray to a plastic one, the system automatically transfers all identification information to the RFID tag of the plastic tray.

Each RFID tag is assigned a unique identifier in the system database. When loading a tray with semi-finished products of filters, the corresponding filter code is written to the RFID tag. When semi-finished products are delivered to the production line, the filter code is read from the RFID tag memory.

The filter code from the MES system is transferred to the database and then distributed to all RFID readers of the production lines. Information about loading or unloading from the tray of a particular semi-finished product on the production line is stored in the database, from which it is subsequently transferred to the customer's MES system.

Solutions Used

Especially for the Philip Morris project, a special series of TwinTag RFID tags with increased memory capacity, made in the form of a sticker, was developed and produced. The label is unified for marking two types of trays: cardboard and plastic. It provides the ability to install various models of UHF chips. The RFID tag is designed to meet the requirements of stable registration of objects in various planes (3D format), and its characteristics provide stable reading on production lines.

In addition, the RST-MAR RFID reader was developed, equipped with uniquely designed antennas. Antennas are equipped with a magnetic mount and sensors to control the presence of the tray. Antennas are mounted without making changes to the design of production lines.

Project summary

The built RFID system helped to automate control technological processes in the manufacture of cigarette products, increased transparency and efficiency in process management. Thus, the system minimized the involvement of a person in product quality control and, as a result, made it possible to prevent errors associated with the use of raw materials not intended for the manufacture of certain products.

Full name: LLC "PHILIP MORRIS SALES AND MARKETING"

TIN: 7710298176

Type of activity (according to OKVED): 46.35 - Wholesale trade tobacco products

Form of ownership: 23 - Ownership of foreign legal entities

Legal form: 65 - Companies with limited liability

Reporting is done in thousand rubles

See detailed verification of the counterparty

Accounting statements for 2011-2018

1. Balance sheet

Brief balance sheet analysis

Graph of changes in non-current assets, total assets and capital and reserves by years

2. Profit and loss statement

Brief analysis of financial results

Schedule of changes in revenue and net profit by years

4. Cash flow statement

6. Report on the intended use of funds

2018 2017 2016 2015 2014 2013 2012

No data for this period

Additional checks

Check counterparty Download data for financial analysis

* An asterisk indicates indicators that are adjusted in comparison with Rosstat data. The adjustment is necessary to eliminate obvious formal inconsistencies in reporting indicators (difference in the sum of lines with the final value, typos) and is carried out according to an algorithm specially developed by us.

Reference: The financial statements are presented according to Rosstat data, disclosed in accordance with the legislation of the Russian Federation. The accuracy of the given data depends on the accuracy of the data submission to Rosstat and the processing of these data by the statistical agency. When using this reporting, we strongly recommend that you check the figures with the data of the paper (electronic) copy of the reporting posted on the official website of the organization or received from the organization itself. The financial analysis of the presented data is not part of the Rosstat information and is performed using a specialized

About company

Company "Philip Morris Sales and Marketing" is one of the leaders in the Russian tobacco market.

Due to the dynamic growth of employees within the organization and the systematic development of the company's business, new professional personnel. Therefore, every year we attract young professionals to start positions in various departments - marketing, finance, information services, HR, administrative, legal, corporate issues. But the largest influx of candidates occurs in the customer service department.

The starting position in this department is the Sales Assurance Specialist in the Territory. It is from this first step that the climb up the career ladder to a managerial position begins. The main task of the employee in this position is to ensure the availability, good visibility, competitive advantage and advertising support for brands of Philip Morris International cigarettes in enterprises retail. Vacancies most often arise in connection with the promotion of employees within the company to higher positions and moving to other departments. This is part of the company's development strategy.

In order to become a professional manager, the company offers several developing positions. The position of a specialist in the trade development department allows the employee to apply his initial experience in the company and the knowledge gained at the university to develop different kind commercial equipment and shopping programs for retailers.

Another one of the developing positions - distribution development specialist - is directly related to sales volume planning and includes work with distributor representatives.

The company has a wide range of training programs tailored to each position. Participation in training programs is determined in agreement with the management and is integral part professional activity employees of Philip Morris Sales and Marketing.

Depending on the assessment of the results of the previous year and the analysis of the situation on the labor market, the remuneration for the work of an employee may be revised, which provides employees with competitive wages.

To work with retailers, the company may provide company car, computer and pay for mobile communications.

Career

Philip Morris Sales and Marketing LLC carries out activities in the field of marketing and sales of cigarettes in Russia, informing adult cigarette consumers about the company's products, and implements programs for the development of brands.

Philip Morris Sales & Marketing is working to ensure that any adult consumer can find their preferred brand from our range at every outlet across the various settlements countries.

As a rule, the ascent of employees on the career ladder in the customer service department begins with positions or.

Further development employee depends on the results of his work, the ability to learn and master new skills and occurs on the basis of his individual plan. The company has a number of development opportunities. So, in the position of a specialist in ensuring operations, an employee who has initial experience in the company and knowledge gained at the university has the opportunity to master the planning of sales cycles in the territory and analysis key indicators activities. The work of a distribution and channel specialist is directly related to the implementation of trade strategies and interaction with external business partners.

The company has a wide range of training programs tailored to each position. Participation in training programs is determined jointly by the employee and his manager and is an integral part of the professional growth and individual development of Philip Morris Sales and Marketing employees.

To work with retail outlets, the company provides a company car, electronic devices to enter information and pays for mobile communications.

Local Sales Specialist

• daily visits retail outlets in a certain territory;
• encourages retail outlet owners to maintain the product range of PMI affiliates in Russia;
• provides visibility and predetermined arrangement of cigarettes;
• posting advertisements in outlets;
• participates in advertising and information campaigns on the company's products, as well as national and local sales programs in retail outlets on its territory.

Adult Consumer Specialist

• ensures the availability and optimal placement of the company's products in the entertainment facilities of your city (HoReCa);
• establishes and develops effective cooperation with the owners and staff of HoReCa points;
• conducts trading, marketing programs and promotional activities in the HoReCa segment;
• collects information about the market.

Requirements for candidates:

• higher education / last year of university;
• possession of a driving license category "B" (experience in driving a car for at least 1 year);
• knowledge in English welcome (is necessary condition for further career advancement).

Personal qualities:

• striving for success and achievement of goals;
• customer orientation;
• good communication skills;
• responsibility;
• Ability to work independently and make informed decisions.

Igor Kroshko, cigarette production manager at the Philip Morris Kuban factory in Krasnodar "Learning is impossible without risk" Igor joined PMI 10 years ago in St. Petersburg as a production operator. Thanks to his great curiosity and ability to learn quickly, Igor soon tried himself in all the production departments of the company. In 2007, he moved to our Krasnodar branch and became the manager of cigarette production. Among the 60 PMI factories around the world, Philip Morris Kuban OJSC is one of the largest and most efficient. Igor manages a team of 400 employees responsible for the production of more than 30 billion cigarettes per year. And although Igor is proud modern technologies and the processes used in the factory, he believes that the key to success is maximum support for his team from the manager. “My employees know that the opinion of each of them is important. I listen to their wishes and always give honest answers.” He also invites his employees to try themselves in a new capacity and learn new skills. “Learning is impossible without risk. I believe in their potential just as much as PMI believes in me." Igor says that PMI played an active role in his professional growth. Together with Human Resources, he has built a roadmap for understanding our business and is currently pursuing a business education program at the Stockholm School of Economics. He speaks enthusiastically about the opportunities that open before him. "I'm looking forward to learning where my career with PMI will take."

Contact Information

Definitions

There are many definitions of marketing in the literature:

Most researchers agree that marketing is a process. It starts with a study of the target market segment for which the company is going to work. Marketers determine potential demand and its size (capacity of the market segment), that is, they identify buyers whose needs are not sufficiently satisfied or who have an implicit interest in certain goods or services. Segmentation of the market and the selection of those parts of it that the company is able to serve in the best way is carried out. Plans are being developed for creating and bringing products to the consumer, as well as a marketing mix strategy (Eng. marketing mix) impact on demand through the product, price, distribution channels and methods of promoting the product. They create a marketing audit system that will allow evaluating the results of ongoing activities and the degree of their impact on consumers.

Marketing Principles

Marketing adheres to the following five basic principles:

1. the production and sale of goods must meet the needs of buyers, the market situation and the company's capabilities;
2. full satisfaction of the needs of customers and compliance with the modern technical and artistic level;
3. presence on the market at the time of the most effectively possible sale of products;
4. constant updating of manufactured or sold products;
5. unity of strategy and tactics for quick response to changing demand.

Functions, concepts and goals of marketing

Usually the content of marketing is identified with sales and its promotion, advertising. However, in fact, sales is one of the functions of marketing and often not the most essential. If a firm has done a good job on such sections of marketing as identifying consumer needs, developing suitable products and setting an appropriate price for them, establishing a distribution system and effective incentives, then such products will no longer have sales problems, unless the firm operates in a highly competitive market. . According to the classics of management theory, ideally, the goal of marketing is as follows:

"One of the leading management theorists, Peter Drucker, puts it this way: “The goal of marketing is to make marketing efforts unnecessary. His goal is to know and understand the client so well that the product or service will fit the latter exactly and sell themselves. ”.

- Fundamentals of Marketing, Philip Kotler.

All this does not mean that sales and promotion efforts lose their importance. These functions become part of a larger marketing mix, that is, a set of marketing tools that need to be harmoniously linked with each other in order to achieve maximum market impact. In general, marketing is human activity one way or another related to the market.

Marketing functions form the following concepts: need, needs, demand, product, exchange, transaction and market.

The basic idea behind marketing is the idea of ​​human needs.

Need- a feeling of lack of something. The needs of people are diverse and complex, but in general their number is finite, in contrast to needs. Here are the basic physiological needs for food, clothing, warmth and security; and social needs for spiritual intimacy, influence, and affection; personal needs for knowledge and self-expression. Most of these needs are determined by the original components of human nature. If the need is not satisfied, the person feels unsatisfied and seeks either to find an object that can satisfy the need, or try to drown it out.

The second initial idea of ​​marketing is the idea of ​​human needs.

It is not difficult to list the needs of a particular society at a particular point in time, while the company could plan production volumes for the next year based on the totality of the previous year's demands. Something like this happened with the planning of production in the USSR. However, requests are an unstable indicator. People get bored with the things that are current and look for variety for the sake of variety. In the 90s, down jackets came into fashion, for which people abandoned previously used clothes, then they also abandoned down jackets.

A change in choice may also be the result of a change in prices or income levels. A person usually chooses a product whose combination of properties provides him with the greatest satisfaction for given price, taking into account their specific needs and resources.

see also

see also other audio articles

see also other audio articles

• Content marketing
• Idea Marketing
• Product Marketing
• Territory Marketing
• Marketing of personalities
• Organization Marketing
• Marketing activities
• Neuromarketing

Analysis methods (marketing models)

Marketing models are used not only for marketing analysis but also for communication between the marketing department and other departments.

04Feb

Hello! In this article we will talk about marketing in simple words- what is it, why and how to apply it in the enterprise.

Today you will learn:

1. What relates to marketing, functions and types of marketing;
2. What are the marketing strategies in the enterprise, and what does the marketing plan consist of;
3. What is marketing in business and how to distinguish it from business to consumer;
4. What is it and how not to confuse it with a financial pyramid;
5. What is internet marketing and its benefits.

The concept of marketing: goals and objectives

There are at least 500 definitions of marketing. Often, with such an abundance of definitions of this concept, it is difficult to understand what relates to marketing.

Explaining in plain language marketing is the activity of an organization aimed at making a profit by satisfying the needs of customers.

In a broad sense, many marketers consider marketing as a business philosophy, i.e. the ability to study the market, the pricing system, predict and guess the preferences of customers, effectively communicate with them in order to satisfy the needs of consumers and, accordingly, make a profit for their enterprise.

Based on the definition, it is logical that purpose of marketing in the enterprise is customer satisfaction.

And the well-known economic theorist Peter Drucker notes that the main goal of marketing is to get to know the client so that the product or service can sell itself.

To achieve the goal of the organization, marketing activities involve solving the following tasks:

1. Detailed market research, in-depth analysis of customer preferences;
2. Careful study of the pricing system in the market and development of the pricing policy of the organization;
3. Analysis of competitors' activities;
4. Creation of a range of goods and services of the organization;
5. Release of goods and services corresponding to demand;
6. Service maintenance;
7. Marketing communications

When solving marketing problems, it is necessary to be guided by the following principles:

1. Studying the production capabilities of the enterprise;
2. The process of planning methods and programs for marketing a product or service;
3. Market segmentation;
4. Constant updating of goods and services, ways of their marketing, improvement of technologies;
5. Agile response of the organization to ever-changing demand.

Marketing Functions

Marketing performs a number of functions:

1. Analytical;
2. production;
3. Function of command and control;
4. Sales function (sales);
5. Innovative.

Analytic function involves the study of external and internal factors affecting the organization, the study of consumer tastes and the range of goods. It should be noted that it is necessary to analyze internal environment organizations in order to control competitiveness in the market.

production function includes the development and development of new technologies, the organization of the production of goods and services, the organization of the purchase of material and technical resources necessary for the enterprise. In addition, the production function is understood as the management of the quality and competitiveness of the finished product or service, i.e., compliance with the quality of the product in accordance with established standards.

Command and control function ensures the process of planning and forecasting at the enterprise, the organization of the communication system, Information Support and risk management.

Sales function includes the pricing and commodity policy of the organization, provides a system of product distribution and expansion of demand.

Innovative function in marketing plays the role of developing and creating a new product or service.

To solve problems and achieve goals in marketing activities the following marketing methods should be applied:

• Market research:
• Survey;
• observations;
• Methods of demand formation and sales promotion;
• Analytical methods:
• Analysis external environment organizations;
• Consumer analysis;
• Analysis of existing products;
• Planning the range of future products;
• Development of pricing policy;
• Information Methods:
• Advertising;
• Personal selling;
• Propaganda;
• Consultations.

Thus, based on the definition, goals, objectives, functions and methods of marketing, we can conclude that the science of marketing is focused exclusively on the consumer and the satisfaction of his needs.

Types of marketing

According to demand distinguish between the types of marketing presented in table 1.

Table 1. Types of marketing depending on demand

• Demarketing - a type of marketing that is aimed at reducing demand. This situation is possible when demand significantly exceeds supply. To deter consumers, the organization raises the price of a product or service, refuses advertising and tries to reorient the client.

A striking example is the use of demarketing during the cold season, when the demand for electricity increases many times over. Since this can negatively affect the entire power grid system, and very expensive equipment can fail, marketing workers develop programs to reduce demand or redirect it.

• conversion marketing - a type of marketing aimed at creating demand. It is used in case of negative demand for a product or service. To do this, they develop a plan to promote a product or service, lower prices or re-release the product. To promote a product or service with negative demand, advertising and PR are used.
• promotional marketing used when there is no demand. It is necessary to stimulate demand, taking into account the very reason for the lack of demand in the first place.

There may be no demand for products if:

• The product is not relevant in the market;
• The product loses its value;
• The market is not ready for the emergence of a new product or service;

In order to interest the buyer and increase demand, the company uses tools such as a sharp decrease in the cost of a product or service, increased advertising activities, the use of methods trade marketing etc.

• Developmental marketing - a type of marketing in which potential demand must be turned into real. That is, it is necessary to determine the needs of buyers and create a new product or service that meets these needs.
• Remarketing used in a situation where you need to revive demand. That is, the demand for products is falling and it needs to be restored by introducing new characteristics and features into a product or service. For example, Clear Vita ABE Anti-Dandruff Shampoo was first created with the new Zinc Pyrithione formula and the unique Vita ABE formula for both men and women. Subsequently, Clear experts proved that the scalp of men and women has a different structure, and released a line of shampoos Clear Men and Clear Woman.
• Synchromarketing - a type of marketing in which it is necessary to stimulate demand, as it fluctuates. The task of synchromarketing is to smooth out irregular demand by setting flexible prices and various ways to promote products. This type of marketing is usually used in case of seasonal demand or any other cyclical fluctuations, as well as climatic factors that strongly affect demand. A striking example of the use of synchromarketing is the offer of various set meals and business lunches in cafes and restaurants in daytime at a reduced price. Since there are much fewer visitors during the day than in the evening, therefore, daytime prices are lower than evening ones.
• Supportive Marketing an organization uses when demand matches supply and needs to continue to stimulate demand for a product or service. To maintain demand at the proper level, it is necessary to correctly conduct a pricing policy, stimulate sales, conduct advertising, and control costs.
• Counter marketing It is used when there is a constant irrational demand for products, which is contrary to the interests and well-being of the population. In such a situation, it is necessary to stop production and carry out anti-advertising. Counter marketing tools are used on products such as alcohol and tobacco products.

Based on market coverage There are mass (undifferentiated), concentrated (target) and differentiated marketing.

The concept of undifferentiated marketing involves a product designed for all market segments. Product differentiation is not carried out, products are sold at low prices.

With concentrated marketing the situation is reversed. Goods or services are designed for a specific group of customers.

When using differentiated marketing forces are directed to several market segments. But it is worth noting that a separate offer is created for each market segment. This type of marketing is considered more promising in relation to the previous two types.

Marketing strategies and marketing plan

There are 2 levels of marketing in an enterprise:

• Tactical;
• Strategic;

Tactical, or otherwise, operational marketing involves the development of short-term plans to achieve the goals of the organization.

Strategic Marketing is aimed at developing long-term prospects for the operation of the enterprise in the market. That is, the internal capabilities of the organization to influence the external environment of the market are evaluated.

Marketing strategies are classified into the following groups:

• Market expansion strategy;
• Innovation strategy;
• Diversification strategy;
• reduction strategy.

Market expansion strategy otherwise called the strategy of concentrated growth. That is, the company's strategy is aimed at horizontal development, conquering most of the market in the fight against competitors, improving existing products or services.

Innovation strategy otherwise defined as an integrated growth strategy. That is, the organization's activities are aimed at vertical development - the creation of new goods and services that will have no analogues.

Diversification strategy the organization chooses if the probability of "survival" in the market with a certain kind product or service is very low. Then the organization can produce a new product or service, but at the expense of existing resources.

Reduction strategy used for a long stay of the enterprise on the market for more effective work. The organization may reorganize or liquidate.

Marketing strategies are also distinguished by market coverage:

• Mass (undifferentiated) marketing strategy;
• Differentiation strategy;
• Individualization strategy;

Mass Marketing Strategy directed to the whole market. Market advantage is achieved by reducing costs.

Differentiation strategy focused on capturing most of the market segments. The advantage is achieved by improving the quality of products, creating a new design, etc.

Consumer individualization strategy directed at only one segment of the market. The advantage is achieved by the originality of the product or service for a specific target group of customers.

The development of a marketing strategy consists of seven stages:

1. Market research;
2. Assessment of the organization's capabilities;
3. Assessment of competitors' capabilities;
4. Setting goals for marketing strategy;
5. Research of market segments and consumer interests;
6. Positioning development;
7. An economic evaluation of the strategy is underway.

Stage 1. An analysis is made of macroeconomic indicators, the political, social and technological situation, as well as the influence of international factors.

Stage 2. To assess the capabilities of an enterprise, economic analysis, marketing analysis, production capacity assessment, portfolio assessment and SWOT analysis.

Stage 3. Includes an assessment of the organization's competitiveness. Strategies of competitors, strengths and weak sides ways to establish superiority over competitors.

Stage 4. The next step is to set the goals of the marketing strategy.

Stage 5. Includes customer needs research as well as methods and time to market.

Stage 6. Specialists receive certain recommendations for managing the enterprise.

Stage 7. An assessment and analysis of the economic strategy and control instruments is carried out.

Summing up a little, we can conclude that the marketing strategy reflects a plan to achieve the goals of the company, which evaluates the production capabilities and financial budget of the organization.

The marketing plan is inextricably linked with the marketing strategy of the enterprise, that is marketing plan implies a special document reflecting the goals and objectives of the organization's marketing, as well as marketing strategies that will be applied in practice.

To concretize the marketing plan, a marketing program is drawn up, which will indicate who is doing what to do and how to do it.

To implement a marketing plan, you must adhere to the following principles:

• The principle of rolling planning;
• The principle of differentiation;
• The principle of multivariance;

Rolling scheduling principle applied depending on the market situation. This principle involves the introduction of adjustments to the current plan. For example, a marketing plan is designed for 3 years, but the market situation changes quite often, so every year it is necessary to make amendments and adjustments to the plan in order to be competitive.

Principle of differentiation suggests that an established product or service cannot be liked by everyone. Therefore, using this principle, it is possible to carry out a reorientation to serve any category of consumers selected according to certain criteria.

The principle of multivariance provides for the development of several marketing plans at the same time for all possible situations.

The structure of the marketing plan is as follows:

• Define the mission of the organization;

The mission of an organization is to define strengths to become successful in the market.

• Compile a SWOT analysis of the enterprise;

SWOT-analysis - This situational analysis, which reflects the strengths and weaknesses, opportunities of the organization, as well as threats under the influence of internal and external environmental factors.

• Set marketing goals and strategies;

It is advisable to set goals and define strategies for each area separately.

• Development pricing strategy organizations;

• Choice of market segments;

In this block, when choosing market segments, the emphasis is on reducing costs and increasing sales efficiency through sales volume and prices.

• Scheme for selling a product or service;

Here it is necessary to highlight the distribution channels for products, whether they work effectively, in what quantity and how they are implemented in the organization.

• Implementation tactics and methods of sales promotion (marketing);

In this paragraph, it is necessary to determine the methods for the sale of goods or services that could be successfully used both in short term, as well as in the long term.

• After-sales policy;

Here we need to constantly improve the after-sales service system. The level of service should be compared with competitive enterprises, improve the skills of employees, monitor their communication skills. In addition, it is worth providing certain guarantees and Additional services to their customers and compare them with their competitors.

• Conducting an advertising campaign;

• Formation of marketing costs;

When drawing up a marketing budget, it is necessary to take into account all planned expenses, income and highlight the projected net profit of the organization.

Thus, it should be concluded that the marketing plan is simply necessary for the successful organization of the enterprise. This is a kind of map that helps to navigate the economy as a whole, to efficient business and be competitive in the market, earning high profits.

Marketing in business or B2B marketing

Marketing in business or otherwise it is called marketingB2 B (business-to-business, business to business) is determined How business relationship between industrial enterprises in a market where goods and services are not for final consumption, but for business purposes.

B2B marketing should not be confused with marketing B2 C(Business to Consumer, business for the consumer), which implies marketing relations in the market where goods and services are created for final consumption.

Marketing in business has distinctive features and characteristic features:

• Demand in business activities stems from consumer demand;
• An organization purchases a product or service to achieve its stated objectives. That is, a business purchase is targeted rather than a consumer purchase. The client buys this or that product to satisfy himself. That is, a consumer purchase is emotional in nature;
• Volume of purchased goods or services. The enterprise buys goods and services not by the piece, but by tens and hundreds of pieces, that is, it makes large purchases;
• The risk of buying an enterprise is much higher than buying an ordinary consumer. The profit of the organization depends on it;
• Business purchases are made by professionals in their field. The purchase decision is made by several experts in the field;
• In B2B marketing, the seller knows the needs of the buyer better and interacts closely with him;
• An enterprise that makes a business purchase hopes for further cooperation with the seller enterprise. Therefore, the provision of guarantees plays an important role here, after-sales service and installations.

Network marketing

Network marketing (MLM - multi-level marketing) is a technology for selling products from manufacturer to consumer, which is advisory in nature and is transmitted from person to person. At the same time, the so-called distributor can not only sell the product, but also attract new sales agents to the company.

The business plan of an MLM company suggests that distributors:

• Have you used this product yourself?
• Selling a product to customers;
• Involved other sales agents to create a network of business entrepreneurs.

The manufacturer is responsible for organizing delivery. It ensures that the goods are received by the distributor at home. For the effective work of sales agents, master classes, seminars are provided to develop sales skills and achieve success in their business.

For an entrepreneur network marketing is an attractive business because it does not require experience and a large initial capital investment.

For the buyer network marketing also looks good, as truly responsible MLM companies provide quality products and a guarantee for them. In addition, before buying a product, the consumer receives all the necessary information about it and receives the product at home.

Network marketing provides for active and passive income. The agent earns active income from the volume of sales. And passive income is created by creating and actively developing a subnet of distributors.

Nevertheless, at least at first glance, network marketing is seen as an attractive business, in addition to advantages, it also has a number of disadvantages.

Table 2. Advantages and disadvantages of network marketing

To attract a potential distributor to MLM business you can use the following methods:

• Look for partners among your surroundings;
• Look for partners among the environment of your friends and acquaintances;
• to promote products;
• Search for partners through social networks;
• Meet new people and involve them in this species business.

When we are talking about network marketing, then immediately there is an association with such a definition as a financial pyramid, the activity of which is prohibited on the territory of the Russian Federation.

The main difference between network marketing and financial pyramids is that the profits of MLM companies are divided among distributors, taking into account the contribution of each. And the financial pyramid receives income due to the number of attracted people and their contribution to a non-existent product.

In addition, network marketing can be distinguished from a financial pyramid by the presence of:

• marketing plan;
• The management and articles of association of the company;
• the products themselves;
• Learning systems.

The financial pyramid does not have a specific marketing plan, it is very confusing and incomprehensible. The management of the company is anonymous and, moreover, there is no charter of the enterprise. There is no assortment of goods, there are only a couple of units of dubious products. Also, there is no training system or it costs a certain amount of money, for which cheap advertising brochures are issued.

In network marketing, training of sales agents is provided for free, or for a symbolic amount, training disks, books, or videos on the Internet are issued.

Vivid examples successful development network marketing companies are Amway, Avon, Oriflame, Faberlic and Mary Kay.

Summing up a little, we can conclude that network marketing is aimed at promoting the product and rewarding the distributor for the work done, and the main purpose of the financial pyramid is to attract people and their financial investments.

Internet Marketing

Internet marketing is currently a relevant innovation for the promotion of goods and services.

Internet Marketing is the application of traditional marketing activities on the Internet.

Purpose of Internet Marketing– making a profit by increasing the number of visitors to the site or blog, who in the future will become buyers of certain goods and services.

Tools to increase sales of goods and services and increase the number of site traffic are:

Helps to create and strengthen relationships with a certain target group who is subscribed to the newsletter.

• Traffic arbitrage - buying and reselling traffic at a higher cost;

Internet marketers are faced with the following tasks:

• Promote products and services using;
• Create interesting content for the target audience;
• Process the received information;
• Monitor the operation of the site;
• Maintain the image of the company on the Internet;
• Recruit specialists with a narrow focus to perform a specific job.

Online marketing includes the following elements: product, price, promotion, place.

Internet marketing involves strategies such as:

• Viral marketing;
• Integrated online marketing;

Viral Marketing is the most complex yet most rewarding online marketing strategy. It is focused on creating such interesting information that everyone will view hundreds of times, constantly like and repost.

Viral attraction of people is applied with the help of:

• Use of videos;
• Use of online games;
• Use of the company's website;
• Writing a provocative article that can cause resonance and will be discussed among users;

Efficient work and success can be obtained as a result of a combination of viral marketing in in social networks with advertising.

The main advantages of viral Internet marketing are simplicity and speed of action. In addition, viral Internet marketing is cost-effective, as it does not require special expenses. The Advertising Act does not apply to viral advertising. That is, there is no censorship, no restrictions, which makes internet marketing more free.

Essential disadvantage of viral online marketing is insufficient control over the process, as well as the feed material may be distorted.

Integrated Internet Marketing implies a set of various resources and advertising channels to promote a product or service to the market.

The structure of integrated Internet marketing is as follows:

• Strengthening traditional marketing;
• Processing of all market segments;
• Advertising profit reports;
• Sales control in branches;
• Building unified system promoting a product or service;
• Construction of telephony;
• Sales training;

Under publicityPR) refers to increasing brand awareness. This strategy must be used by all companies, regardless of position, as it helps to increase company revenues, attract potential clients and the brand becomes recognizable and popular on the Internet.

Having considered the goals, tools and strategies of Internet marketing, we can highlight its advantages:

• Large coverage of the target audience;
• Getting information at home;
• Small advertising costs.

Conclusion

In conclusion, I would like to say that marketing is a very interesting science for entrepreneurs. Knowing how a marketing plan is drawn up, when and where to apply this or that marketing strategy, you can stay competitive in the market for a long time, while getting good profit. And, having mastered Internet marketing, you can achieve even greater success in.