METHODOLOGY FOR PRODUCT PROMOTION IN A HIGHLY COMPETITIVE MARKETPLACE NICHE
Abstract
Digital product sales platforms provide a growing volume of commerce through convenient product selection for the customer, customer-centric service, and alternative product options for customers. Digital marketplaces or marketplaces provide companies with platform-integrated product promotion tools, automatically leading to the creation of unique business models for selling in a digital environment. However, integrated promotion tools in the absence of an understanding of the algorithms and principles of their work do not ensure stable sales. This requires the development of a methodology for product promotion in the electronic market. The aim of the article was to develop a methodology for product promotion in a highly competitive niche on the marketplace. As a result of studying the practice of promoting the product of company X, the methodology of product promotion in a highly competitive niche on the marketplace was formed. It was determined that for effective promotion methodology should include: identification of the prerequisites and objectives for promoting the product on the digital platform; development of a unique selling proposition based on product preferences; competitor product analysis; determination of the budget and promotion strategy for the product; selection of types of advertising campaigns and campaign promotion tools. To estimate the efficiency of the product launch and advertising campaigns the following indicators are used: conversion rates, the target audience coverage level, CPC (Payperclick), CTR (click-through rate or clickability), the relationship between the cost of advertising and sales (AdCostOverSales, ACOS), the competitors’ share of advertising expenses (ShareofSpend, SOS) and the target market share for the product (SOM). Redistribution of advertising investments between the selected advertising campaigns ensures the achievement of the planned sales volume by investing in the most effective tools. It is determined that redistribution of advertising investments is expedient in the current period to achieve the strategic goals of promotion – ensuring the planned market share of planned investments in output, promotion of the product in the electronic market.
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