Created in 1998 by former lawyer and financier Peter Thiel and programmer Max Levchin (by the way, a native of the USSR, who emigrated to Chicago in 1991). Thiel and Levchin's project immediately interested investors: for example, Nokia Ventures immediately invested $3 million in the project, and Deutsche Bank - $1.5 million. needed a financial operator that would perform the functions of an online bank, and there were no such structures on the Internet yet.
PayPal went live in November 1999 and was immediately able to attract even more investors, including banks, which invested $23 million in PayPal. The rapid growth of the Internet led to a large influx of users. Per a short time PayPal now has over 1.5 million customers and a turnover of $2 million a day!
In early 2002, $900 million worth of PayPal shares were floated on the US stock market. In October 2002, eBay acquired PayPal for $1.5 billion and announced it as its underlying payment instrument. Today, PayPal is the undisputed leader in its field, and none of the competitors could even come close to the number of users and turnover that it operates with. More than 90% of online merchants worldwide accept payment for their goods only through Paypal.
PayPal Inc. is licensed by regulatory authorities for banks and financial institutions in 29 US states. User accounts in the system are denominated in US dollars and are insured by SafeWeb Insurance against unauthorized withdrawal of money in the amount of 100,000 US dollars. User funds deposited into the system are held in Wells Fargo bank accounts.
Registration in PayPal for Russians was opened only in 2006, and Russians were able to fully use the system, including receiving money and withdrawing it to a card or bank account, only in 2013.
Some time ago, PayPal added support for new currencies. In addition to US Dollars, Australian Dollars, Euros, Pounds Sterling, Canadian Dollars, Japanese Yen and Chinese Yuan, the service now handles Czech Koruna, Danish Krone, Hong Kong Dollar, Hungarian Forint, New Zealand Dollar, Polish Zloty, Norwegian Krone, Singapore Dollar, Swedish Krona and the Swiss franc. The project website has a multilingual platform that supports the following languages: English, Spanish, French, Chinese (!) and, which is especially nice, for some time now also Russian.
The Paypal payment system is significantly different from other electronic payment services in that it deals with real money, and not "title units". Paypal offers a financial instrument by which a plastic credit card or bank account is linked to the user's Paypal account, so that at any time you can directly replenish your balance in the system or withdraw money from it.
Paypal has revolutionized the world of mobile technology by making instant payments using a mobile phone (Paypal Mobile Payments) a reality. Users who have connected this service can make payments via SMS without even going to the Paypal website. To do this, just send a text like "Send $20 to [user ID]" to the specified number, dial the confirmation code, and the payment will be sent immediately. However, this happiness this moment may only be available to US residents.
Along with the undeniable advantages, PayPal also has disadvantages associated, admittedly, with the conscientious work of the system's security service. One of the inconveniences associated with this concerns us directly: the Russians are left to look at many of its charms from the outside, since Russian users cannot use its services in full. True, on October 12, 2011, there was, without exaggeration, a huge breakthrough in PayPal relations: if earlier Russians could only pay for purchases and services through PayPal (at an eBay auction, in online stores, services of hosting companies, etc.), now in Russia it is allowed to accept payments. However, Russians are not yet allowed to withdraw them from the system: they can only be spent on online purchases. However, if you, being a citizen of Russia, have a bank account in the United States, then you can transfer money to a card.
“The fact that Russians are subject to restrictions on accepting PayPal payments speaks to the ongoing fear of massive fraud. Our users need to be prepared for the security policy of this company, which allows them to block accounts without formal reasons and explanations,” Petr Darakhvelidze, director of external relations, commented on this fact for CNews payment system webmoney. The list of countries that are our comrades in misfortune and countries that are "lucky" can be found on this page. It must be said that it is difficult to expect a different attitude towards Russians, if almost every new topic with a question about Paypal on any Russian-language forum contains a question in whose name to register an account - on your own or on Aunt Rosa from Brazil.
The system is generally known for a series of scandals related to blocking funds on customer accounts or simply freezing accounts if system administrators suspect that the account does not belong to the user. Angry customers even created websites www.paypalsucks.com and www.paypalwarning.com. They house the so-called "Wall Of Shame", which contains "horror stories" told by those who suffered from PayPal. In defense of Paypal, we can say that not a single EPS, except for it, can boast of such an extensive user audience, and the larger the customer base, the greater the absolute number of dissatisfied, and no one keeps such statistics in percentage terms. In addition, the burden of leadership in an industry is heavy on any company when every mistake and miscalculation is made public and dealt with with increased scrutiny.
The reason for such a picky attitude towards customers lies in the fact that the main pillar of PayPal's existence is account security. He helped the company survive for many years. And one of PayPal's security tools is clause II.3 of the User Agreement, which states:
“You agree to provide true, accurate and complete registration information... You agree not to represent any other person or use a name that you are not authorized to use. If any of the information you provide is found to be untrue, inaccurate, inconsistent, or incomplete, PayPal has the right (but is not limited to) to terminate your use of the PayPal services. And PayPal, its agents, suppliers and contractors have the right to require you to pay all costs and losses arising directly or indirectly from inaccurate or incomplete information.
If we study in more detail the complaints about blocking accounts with thousands of dollars on them, then in many cases it turns out that users voluntarily or unwittingly violated these clauses of the User Agreement.
Services provided by PayPal
PayPal offers users the following services:
* Sending payment (Send Money). PayPal user can transfer a certain amount from your personal account in the payment system, as well as directly from a bank card or bank account linked to your Paypal account.
*Request for payment (Money Request). Using this type of service, the user can send letters to his debtors containing a request for a payment. You can address your letter to both an individual person and a group of debtors.
* Posting on the tool user website for receiving payments (Web Tools). This service is only available to Premier and Business account holders.
*Auction Tools. The payment system offers two types of services. First, the automatic distribution of requests for payment (Automatic Payment Request). Second, auction winners can pay directly from the Web site where the auction is held (Instant Purchase for Auctions).
The maximum range of services is available to US residents, almost all services are available in Western Europe, China, Australia and Canada. But for many countries of Eastern Europe (which includes Russia, Ukraine, Kazakhstan, etc.), this set is minimal - at the moment, only the first item of the above list is available to us.
PayPal registration and account verification
PayPal offers three types of accounts:
Personal Accounts;
- Premier Accounts;
- Business accounts.
- Personal Accounts- only for individual use (for direct transfers to friends, relatives, clients, etc.). This account type does not accept credit card payments and is intended for PayPal internal transfers. The turnover limit for these accounts is $500 per month. And on an unverified account opened from Ukraine or Russia, a limit of $100 per month is set. Exceeding it may result in account blocking. In addition, as mentioned above, accounts opened from Ukraine or Russia do not have the ability to receive transfers in the PayPal system, regardless of the type of account.
- Premier Accounts- for users who have a larger turnover than the Personal Account allows, and who need to accept payments from credit cards or special PayPal tools (for example, integrating the PayPal payment service with the site).
- Business Accounts- Accounts for companies. They are issued on behalf of the company, under its logo and with its details. Such accounts can only be opened by companies that have a TAX ID (tax payer number).
Registration in the system is a simple process.
- On the first page registration form you indicate the country of residence and your preferred language for working with the system.
- Next, you need to select one of the three types of accounts (see above).
- On the next page, you need to enter your name, correct postal address, email and phone number. If the system did not accept your phone, try entering it by putting spaces between the codes: +7 495 XXXXXXX.
- You will then be asked to enter your credit or debit card details. However, this step can be done later. Necessary condition- that the issuing bank allowed to make payments via the Internet. By the way, a virtual VISA card is quite suitable for registration, which can now be opened in almost any bank.
- At the final stage of registration, you must verify your email inbox: PayPal will send you an activation code. You will need to not only follow the link, but also confirm this action by entering the password you chose when registering with PayPal.
PayPal account is linked to a bank card or bank account user. The user can receive and transfer money from the funds accumulated on the PayPal account, and if these funds are not available or not enough, then when paying, PayPal charges them from the account or card specified by the user. Thus, when depositing / withdrawing funds, the participation of intermediaries is excluded, and funds can be transferred to the user's bank account at any time.
Until you enter your bank card details in your account, your account is considered unverified (unverified). To become verified, you must first enter your card details on the Paypal website:
credit card number listed on the front of your plastic card. It must be entered without spaces.
expiration date- this is the expiration date of the card (Expiration Date). It's usually listed there.
CSC (also called CVV2) - verification code. These are the last 3 digits on reverse side cards (for American Express cards - 4 digits). If there is no number on the card, call your card issuing bank and ask for it.
After the card is added to your account, you can proceed to the verification procedure. Your account will be activated when you enter a special code on the site. To do this, you need to fund your Paypal account with a bank transfer or payment from a plastic card. Your credit card will be charged $1.95 as a membership fee, which will be returned to you in 1-4 days, and $1, which is usually returned after 30 days. Thus, the balance of your card before starting the procedure must be at least $2.95.
In the details of this payment, which you can see on your card statement, you will find a 4-digit code that you need to enter on the PayPal website. In addition to issuing transactions, you can find out this code through online banking or by calling the bank's transaction center. After entering the correct code, your account will automatically receive the verified status.
Russians should be aware that due to the prohibition of receiving funds to their Paypal account, they can only operate with card money for payments. Therefore, there will always be zeros on your account balance, no matter how much money is on the card. But this will not prevent you from paying for services and goods in online stores using your card linked to your account.
In Russia, the service of selling prepaid virtual cards for Paypal is now widespread. You can use this service (for example, buy such a card at a QIWI instant service terminal, ) if for some reason you do not want to trust Paypal with your personal card details. Although a number of resources warn that it is not recommended to use such cards. They, they say, may not like the Paypal security service, as they do not allow you to identify the owner. My personal opinion, which I in no way impose on anyone: since the functionality of the accounts of Russians is already non-existent, and there is no need to talk about raising the trust level of your account under the ban on accepting payments, then it’s not at all a pity to lose such an account after making a payment, with provided that there is no money left on it. After that, it is easy to start a new one by linking another virtual card to it. As a measure against such fraud, perhaps, the physical address confirmation system serves, but the address is not a constant value, it can be freely changed even within the same account.
Working with the system. PayPal transaction fees
The account number and customer ID in Paypal is his e-mail. You can connect several email addresses to your account and receive payments on them. One of them is the main one. Login to your account is possible with any of them.
PayPal has the ability to automatically exchange currencies, i.e. if the sender's account is opened in a different currency than the recipient's account, the payment will be converted into the required currency. Internal exchange rates can be found on this page of the Paypal website (authorization required). You can also use my Paypal currency converter. For currency conversion transactions, the system charges a commission of 2.5%. If the exchange rate in the system does not suit you, you can choose the center that performs the conversion, your bank, from the account in which the payment is made. This is done in the section Profile: "My finances -> My pre-approved payments (click "Update") -> Set available funding sources -> Conversion options". Here you need to select the option "Please bill me in the currency indicated on the Seller's invoice."
PayPal's minimum transaction amount is $1 or equivalent.
The Paypal commission does not depend on the type of account and is:
- 2.9% -2.4% + $0.30 USD for sellers (Online stores, auctions); i.e. the basic commission for online purchases is 3.4%, but can be reduced for stores with a large turnover: the higher the amount of payments received during the month, the lower the system commission for such a store.
- 3.4% + $0.30 USD for personal payments (refunds, etc.)
Thus, when buying goods in online stores, Paypal does not charge a single penny of commission fees from the buyer.
$0.30 USD is a flat fee for USD payments.
In addition to these, additional fees may apply depending on the country of the seller or buyer. A table of additional fees is located. To find out the commission for your particular transfer, I recommend using ONLINE COMMISSION CALCULATOR IN THE PAYPAL SYSTEM .
There are limits in the system (for sending and receiving payments, for withdrawing funds from the account balance), which are imposed on Paypal users according to criteria such as country of residence, account type, etc. The limit can be imposed both on a one-time payment and on a monthly turnover. Users from the CIS usually deal with the “Sending Limit”: Paypal does not allow them to transfer an amount greater than $300-500 at a time.
What to do in a situation if, say, you bought a low-quality product and demand a refund from the seller? After all, the seller will not be able to transfer money to your Paypal account. Fortunately, there is a refund mechanism in the system for such a case. The seller can make a refund of either the entire amount you paid ("full refund"), or part of it "partial refund". Money is returned directly to the card within 3-10 banking days. After sending money, the status "Completed" appears opposite the corresponding transaction in the transaction history.
In addition, the system provides for a dispute mechanism ( case ), which is carried out in the section "Resolution Center". The dispute can be opened no later than 45 days from the date of payment. When starting a Dispute, you must fully describe the claims made against your opponent. As soon as you open a "Dispute", the amount you paid on the seller's account is blocked until the circumstances are clarified. Paypal informs the seller that a dispute has been opened for a particular transaction, and invites him to provide his arguments and evidence. If within 7 days the seller does not answer, or you and the seller are not able to solve the problem, then no later than 20 days after the opening of the dispute, transfer it to the category of "Claims" ( Claim ) is a claim for damages. Then Paypal managers will consider the arguments of both parties and decide on a refund.
You can check the status of your dispute in the Paypal Resolution Center.
Paypal account security
Account recovery
In case of blocking or theft of your account, its recovery is possible only in the case of a personal contact with the Paypal security service. If you send copies of all requested personal documents, including a copy of completed transactions from your credit card, or confirm the change of your IP address, then the PayPal security service will restore the blocked user account.
Transaction protection
There are no protected money transfers in the system. Any measures to confirm transactions or significant actions in the account are also not provided.
The main security measure in Paypal is the denial of service to anonymous clients: they are subject to limits that make working with the system almost impossible. Credit card verification is designed to confirm the identity of the owner of the card being used. The rate of the security service, apparently, is being made on the lack of anonymity and the possibility of involving the state security services in the event of an account being hacked, as well as the strict restriction of access to work by the system of suspicious types like Russians, Ukrainians, etc. Apparently, these measures are quite enough: as stated, the volume of losses of the eBay auction due to fraud is only 0.2% of the amount of transactions (Paypal, I remind you, is the basic payment instrument of eBay).
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2017-05-29 16:11:12
I am in the Baltics. We can put money through the terminal. Yes, and you can replenish in the communication salon. I did so, but the money did not appear in the account. So I'm thinking, either try again, or go the other way. But I definitely need Pay Pal.
2017-05-29 10:47:12
Sergey, PayPal is not a system that you can work with without a card. Before linking the card, your account is unverified, that is, in fact, non-functional. Moreover, they can limit it at any time before passing the verification. If you need a payment system that does not need to be linked to a card, choose something else - Qiwi, Yandex.Money, etc.
For the first time I hear about the possibility of replenishing a PayPal account through terminals. The PayPal website says that the account can be replenished in cash only through the Euroset and Svyaznoy communication stores. So you don't know where your money went. 2016-10-04 17:04:01
Vanya, according to the new rules pending 180 days.
2016-09-23 08:56:39
I sold the goods on ebay, the payment was received, the buyer left a positive review. But the fact is that the payment hangs in the "pending" state for more than 60 days.
The support service did not answer the letter (oddly enough).
Someone faced such a problem?
2016-09-12 23:50:01
septime, if the price of the goods is too attractive, you can not hesitate that this is a scam. But when they throw you, you can try to open a dispute and prove that you did not receive anything. In theory, the seller will have to prove the opposite to Paypal - to provide mail track etc.
2016-08-24 22:45:11
They want to send me an account in Paypal lkz payment for goods from Chinese company(I must say right away that this is not an online store). What is the probability that I will just be thrown?
I mean even more different. If I don’t receive the goods in two weeks, then what is the chance that an open dispute in the Paypal service will refuse me and say that it’s my own fault that it’s not clear to anyone why I transferred the money? Has anyone had a similar experience.
Naturally, the price of the goods attracts me.
Using electronic currency is sometimes much more convenient than paying in cash or through a bank card. There are several major payment systems that are successfully used to make money transfers around the world. PayPal is considered the largest e-currency exchange platform, although for Russia this payment instrument is not available in full.
How did PayPal originate?
What is a Paypal account and how did it originate? The world's largest payment instrument appeared in 1998. The site was used to pay for purchases, so various online stores and individuals actively created accounts there. PayPal's strongest connection was established with the well-known eBay auction, so in 2002 this corporation bought the payment system. However, around 2014, eBay completely separated from the payment system, so today Paypal is an independent platform for making money transfers.
More than 179 million users are registered in the system, but it is not omnipotent, so there remains a part of fairly well-known online stores that do not work through PayPal. These include AliExpress and Amazon, where you can use WebMoney and many other types of transfers.
How long has PayPal been operating in Russia?
The system of online money transfers was closed for Russian users for quite a long time. Only in 2011, the corporation began to expand the boundaries of coverage, so it became possible to register and take active steps for the CIS countries, including Russia. And only by 2013 it became possible to make ruble transfers. However, ruble transactions are mainly used for transfers, since payment for store goods is made in foreign currency, which is converted at the internal rate of the payment instrument.
Slight difficulties may arise for sellers from Russia when working with electronic money. The withdrawal of funds was previously carried out only through US banks, but the situation is gradually changing, which leads to the regulation of the ratio of corporate accounts from Russia. It is possible to carry out any actions with electronic currency only after registration in the system.
Benefits of Paying with PayPal
The PayPal system has received approval from numerous users. This is due to the following factors that favorably distinguish the payment instrument from other ways of working with electronic money:
- A large number of users around the world. Stores that accept payment in this way are located not only in the United States, but also in other countries around the world. The same applies to buyers. A huge base of participants suggests that many customers appreciated its merits.
- Payment protection. This mainly concerns payment for purchases. After making a purchase, the transferred funds are frozen in the system for 45 days, during which the seller cannot receive them. This provides a refund in case the buyer does not receive the goods. This approach almost completely removes the risk of falling for scammers.
- Fast transfer of funds. The freezing of funds applies only to the payment of goods in the online store. The payment instrument itself is also designed to make transfers between individuals, in this case, the money arrives instantly.
- Commission for use. Paypal goes to meet the participants in the circulation of funds, therefore, in many cases, the commission for the transfer is not charged. Typically, the commission is charged only from the receiving side, however, there are exceptions here, since transfers to relatives and friends can be made free of charge.
Using PayPal is quite simple, but there are some pitfalls that you should be aware of.
Registration
Registration with PayPal takes place on the corporation's website. Also, the opportunity to register appears when you try to pay for goods through this system in an online store that cooperates with the system. For initial registration, only an email is required. However, further the system prompts you to enter your personal data. Confirmation of personal data simplifies the work with electronic money.
When registering on the Paypal website, first of all, you need to select the type of account: for business or personal use. Later in the profile settings it will be possible to change the type of account, so the choice is not critical. Registration in both cases is free. Next, the registration of an individual will be considered.
After selecting the type of account, the visitor must fill in several required fields, including the field with email and password. The system has various restrictions, which will be discussed below, so at the stage of specifying an email address, you need to know a few nuances:
- you can specify mail on any mail server;
- mail on paid servers with a domain . com is quoted higher, so the user is not given such a low limit on money transfers without data confirmation.
After the email is specified, the visitor will be prompted to fill out a form with personal data. The form is filled in Russian. It indicates citizenship, full name, date of birth, address, telephone number, as well as the series and number of the passport. All fields are filled in without fail. Passport data will be required in the future to link a bank card.
The phone number is required to protect the user from account hacking, since the login is exactly the same as the email address. In addition, if the password from the system is lost, it will be possible to restore access using the mobile phone associated with the profile.
After filling in the data in the profile on email You will receive an email to confirm your registration. To do this, you just need to follow the link and log into your registered account using your login and password.
Link to a bank card
The system will prompt you to enter card details immediately after filling in the main fields. You will need to write down the card number, expiration date and 3 digits CVV2/CVC2. You can only link a personal card that is issued to the same person as the account. It is not necessary to link the card immediately upon registration. The visitor has the opportunity to get acquainted with the work of the site from the inside, and then perform the necessary manipulations to link the card.
To confirm the linking of the card, the system will withdraw $1-2 from the account, which, in the case of Russian citizens, will be transferred to the PayPal account. However, the card binding is finally confirmed only after the transaction code has been entered. For most bank card users, this data comes to mobile phone or displayed in personal account on the bank's website. Multiple cards can be attached to one account.
How to use Paypal in Russia: restrictions and pitfalls
After registration, the user can immediately perform actions with his PayPal account, however, there is a limit on the amount for daily transactions, as well as a monthly limit. Every day, a Russian citizen can receive or transfer an amount not exceeding 60 thousand rubles. The amount of all transactions per month is limited to 200 thousand rubles. Such a limit seriously limits the work with the system. However, this situation can be corrected after data confirmation.
The profile page has a tab "Check Limits". It indicates the exact amount set for the user at the moment, and also suggests ways to solve the problem. To do this, you can send a scan of your passport. Approximately the same requirements are set by other electronic payment systems.
Most transactions through PayPal are payment for purchases in online stores. Although the buyer does not pay a commission, there may be additional expenses on his part. Initially, a PayPal account is opened in national currency, only through certain time the user can add other types of currencies. The purchase of goods in foreign stores is paid in the currency of the receiving party, so rubles will be converted into dollars or another currency. The conversion is carried out in accordance with the internal rate of the system, which usually leads to an increase in the debiting of funds for payment. In addition, the conversion is carried out on a paid basis. The commission for this service is 4%, which is paid by either the seller or the buyer.
It is better to convert funds directly to a bank account. And when using foreign currency bank cards, you must disable their conversion, otherwise the money will first be transferred by the bank into rubles, and then by the PayPal system into the desired currency.
A commission of 4-5% is charged when making transfers to friends and relatives in Russia and abroad. However, interest is charged only when using a bank card for transfer, therefore, to reduce costs, it is necessary to transfer funds using a bank account, which is additionally linked to the account.
Paypal: what is it and how to use it
PayPal is a convenient money transfer method that provides buyer protection when paying for goods in online stores. You can find out the list of stores that cooperate with this payment instrument directly on the Paypal website. Some stores provide an additional discount when paying with this e-currency.
Making a purchase with PayPal payment is very easy. In a store that supports this payment method, the usual steps for a purchase are performed: the product you like is added to the basket and an order is placed. PayPal must be specified in the payment method (it will be in the list, so you will only need to click the appropriate button). Next, the buyer will see a window for logging into the PayPal account.
After specifying the login and password, the system will redirect the user to the payment page, where it will be necessary to specify the payment details. It may be a linked card, but it is not mandatory requirement. You can specify other details and confirm the payment.
In addition to paying for purchases, the user can make money transfers within the system. To do this, you only need to know the person's email address. It is not necessary for the receiving party to have an account at the time of sending the funds. He will receive a notification of the transfer by e-mail, after which he will be able to register under it and receive money.
Withdrawals
What is PayPal and how to use it - figured out, in order to withdraw funds, you will need to link a bank account, since the system only works that way. The bank account is linked within (approximately) a week. During this time, the account receives 2 small amounts from the PayPal account. The exact amount of the transfer is a confirmation of the use of this account. After binding, it will be possible to withdraw the required amount within about 3-5 more days.
For citizens who want to speed up the process of withdrawing money, it is recommended to use the services of exchange offices. At the same time, funds are exchanged from Paypal to WebMoney, Qiwi and Yandex.Money, from where you can withdraw money using your own methods. Although this method will save a lot of output time, it is very expensive. Exchange offices take a commission for their services, which is up to 12% of the transferred amount. In addition, the payment systems to which the money will be transferred can have their own commission for withdrawing money.
Progress is moving forward, affecting all areas of our lives. Almost everywhere new and fresh ideas are welcome. This is especially true for advertising - the brighter, more unusual and interesting it is, the more consumers will remember it, and more carefully they will consider the offered product or service. In marketing, the same laws apply - the newer and more creative, the more willingly they pay attention to the goods and services provided and believe the idea.
So what marketing strategy should you choose to make innovation work for your company? However, before choosing a strategy, it is necessary to learn as much as possible about innovation.
Life cycle of innovations and their implementation
Types of innovation
Innovation can be of two types: process innovation and product innovations. It is easy to guess that process innovation is the use in production of a fundamentally new technology, equipment, or, for example, a method of training personnel. Product innovation can combine new technology(or an original combination of several already used technologies) and the introduction of a new product to the market. This phenomenon is called radical product innovation. If no new product has appeared, but an already presented product has been improved, then the product innovation will be incremental. The novelty of innovations can be of two degrees - fundamental and relative.
Creating Innovation
As a rule, innovation appears according to some scheme. This scheme is called the innovation life cycle - the period of time from the birth of the idea of innovation to the withdrawal from production of the product in which this innovation was applied. The first stage is the birth of the idea of innovation. Within this stage, research work and the release of a trial sample of the product with innovation. The next stage is the improvement of technology, industrial development and production of manufactured products. Next comes the stage of market saturation. During this period, production volumes and sales volumes reach their maximum. After this stage comes the decline. This is the period when the product is withdrawn from the market, and production is curtailed. At this stage, it is important to understand the difference between the production life cycle and the innovation life cycle.
Yes, in life cycle production is divided into five stages.
The first step is the introduction of the innovation. This is a very complex process that is costly and time consuming. It is during this period that the production of innovation is improved, a trial batch of the product is produced, and the production process is debugged to the smallest detail.
The next step is learning industrial production. Naturally, this period will take a long time, because in parallel with the development of production, there is also an increase in the production of an innovative product.
But at the third stage, there is a rapid growth and development of production, as well as an increase in the volume of manufactured products. This is a boom in production.
After this development comes the stage of stabilization. At this time, almost all indicators of the enterprise fluctuate in a small range, adhering to the average value, and manufacturing process loaded to the max.
The fifth stage can be characterized by a decrease in the load and a decline in the pace and scale of production. Production possibilities are reduced to the minimum or even to zero. This stage is the final stage for the production of an innovative product.
Perhaps the most important element of innovative marketing can be considered the principle of synergy. This principle lies in the complementary links between all activities and the release of the product. This integrity plays a huge role in the success of a marketing move.
Innovation and creativity
Unfortunately, it happens that people do not always know a clear definition of the term they use. Some consider creativity to be innovation, and vice versa. Since we have already dealt with innovation, let's consider creativity as a concept and the role of creativity in marketing.
Summing up and analyzing all the meanings of the word create, translated from English into Russian, as well as based on the meaning of the word creative, borrowed from of English language, it is possible to give a rather narrow definition of this word. So, a creative is a commercial work (creation, creativity), through the sale of which (creative products or rights to these products) the manufacturer (creator) receives income.
A creative will be successfully sold only when it meets the expectations of potential buyers, as well as their basic needs. The basic needs include aesthetics, morality, and emotional mood. However, most main goal any business are money. And all means are subordinated to this end. To achieve the desired result - big earnings, marketers develop a strategy that includes all aspects of achieving the main goal. As part of marketing strategy carefully considered pricing factors, the most successful methods of product promotion, advertising and much more. As we know, advertising is the engine of commerce. And it is her literacy that decides how well the product will be promoted to the masses. Creativity comes to the aid of the engine of progress. Creativity in advertising or PR is expressed in an original, sometimes even specific approach, new methods of generating and stimulating demand, as well as forming the necessary positioning of the company in the market.
Interactive Marketing
By the way, creativity and innovation is not the only effective remedy. Recently, new media have become especially popular. And if earlier marketers treated them with some suspicion, then at the moment the Internet is an integral part of product promotion and helps to involve consumers in the process. Of course, involving consumers in the advertising process is complex and time-consuming, but it is the global Internet that helps to bypass most of the difficulties. So, for example, potential buyers do not have to be present at a particular event - just go online and participate in the action.
As a small digression, let's recall the well-known works of Jack Trout and Al Rice on positioning. These books are remarkable not only for theoretical information, but also for many examples from real life. Unfortunately, such books about the Internet are not being published now, however, even without books, you can find a huge number of examples of interactive marketing. Let's look at the most striking of them.
One of the interactive projects was the Build Your Volkswagen project, launched four years ago. In order to attract buyers, a special website was created, where visitors were invited to try out any desired configuration and equipment of a Volkswagen car. Residents of the United States could drive the real car they created on this site, and residents of all other countries could test the car online. For even greater comfort of visitors to the advertising site, all the nuances that could be during the assembly of the car were taken into account. As well as the page load time and the amount of information on it was optimal. After the car was assembled, the project participant was asked to drive it along a virtual track. The trip was created very beautifully, high quality and realistic. At the same time, the metal “bun” Fast provoked the virtual driver to drive faster and faster. It should be noted that the “kolobok” is not the only character that stimulates the project participants. While driving, the screen displays german girl Helga in the form of a charming blonde who gives control commands. By the way, erotic overtones are also easy to read in these commands, as a result of which the male part of the population prevailed among the testers of this project. It is worth noting that this project caused a stir among Internet users.
Another example is a website dedicated to the women's Mini. It was awarded at the Cannes Film Festival in the same year, 2006. On this interactive site, the idea of female dominance, that is, feminism, plays almost the main role. When you enter the site, the same car and a pretty girl in a leather suit and a whip in her hands appear on the page. With this whip, the girl periodically whips her car. Such a move should be regarded as follows: the car here personifies a man whom a woman was able to pacify and rebuild for herself. The main idea of this company is to show potential buyers that the Mini car is able to solve all the problems of women that car owners have in the winter. Like a real man, the car will fulfill all the whims of the ladies - you only need to drive the car and give it commands. In addition, on this site it was possible to assemble your car, including all the desired equipment, after which you can send such a complete version of the car to the nearest dealer. This action helped a lot in promoting European Mini cars in Canada. But not everything went as smoothly as we would like. An even greater success of the action was prevented by one drawback - not very convenient management on the site. For example, during the screen saver with a girl and a car, it was impossible to use the site menu - you had to wait for the picture to disappear. And yet this action remained one of the brightest!
In addition to marketers in the automotive industry, the idea of using interactive marketing was also used by representatives of the catering industry. McDonald's rival Burger King used Star Wars hero Lord Vader on its interactive website. This choice was very accurate, because it was at that time that the country was waiting for the release of the third episode of the world-favorite saga " Star Wars". On this interactive site, users can ask Lord Vader various questions, answering which will make him smarter. Visitors can notice this promotion by looking at the site again after a while. Perhaps this action can be called almost the most massive one, because after it was held, the Burger King chain received more than 8 million visitors! It is worth noting that in addition to the site in the advertising of this restaurant chain fast food other ways to attract consumers were also involved.
Only Ikea was able to draw attention to the advertised and sold product with the help of an interactive site. The company's website showed different cuisines and different people and events that these kitchens could correspond to. Each kitchen was accompanied by its own musical accompaniment, perfectly in harmony with the presented picture. However, the highlight was not in this design, but in the very image of the kitchen. It was movable, and the user could view the kitchen from all sides and in all details, just by holding down the mouse button and turning the mouse. This project received the highest praise at the Cannes Film Festival in 2006 precisely because the main object that focused on itself was exactly the product that they wanted to sell. Previous "nominees" did not have this feature.
Analyzing all these techniques, the research corporation PQ Media made a forecast for the future of interactive marketing. According to their calculations, the use of these techniques has increased by 22 percent over the past year. A huge part of the money invested in interactive marketing fell on sites similar to those that were discussed in the article. In addition, PQ Media forecasts the growth of this marketing technique until 2012, the budget for its implementation will be more than 160 billion dollars.
I cannot but notice that such figures are justified. Interactive sites allow consumers to participate in product promotions, which undoubtedly encourages them to tell their friends and acquaintances about the product and site. And who will be able to tell about the product and the company that produces it in an interesting and truthful way? Consumer only!
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The concept and essence of creative marketing
The main goals of marketing are:
- attraction potential consumers and retention of existing customers;
- strengthening positions in the market;
- occupation of a profitable market niche;
- increase in sales volumes.
To achieve all the goals set, global actions are not needed, it is enough to find a creative idea. Advertising eventually ceases to interest and attract attention. Her importunity, excessiveness and obsession repels. Creative marketing is needed to surprise the customer.
Definition 1
Creative marketing is the search for original and unique solutions that attract consumers and make them make repeat purchases.
Creative marketing is based on simple, inexpensive or almost free promotions and ways to promote products and services. It applies if the company:
- intends to promote its products or services as quickly as possible and with minimal investment;
- seeks to attract more customers;
- plans to extract additional income from intangible assets: image, reputation, loyal consumers, etc.
Remark 1
Creative marketing is considered one of the methods of marketing communications. But do not saturate the promotion system with creativity. creative ideas should be developed strictly in accordance with the marketing strategy. Creativity that appears inopportunely can negatively affect the company's reputation.
Creative marketing has the following distinguishing characteristics:
- search for an effective solution to certain business problems is the basis of creative marketing;
- an idea must have an impact to be considered creative;
- the ability to surprise and attract the attention of the buyer.
Creativity helps to stand out and differentiate the company from competitors and leave a mark in the mind of the consumer. To implement creative marketing, the following principles should be observed:
- constant monitoring of marketing trends and new products;
- study of the activities of competing enterprises;
- getting to know the target audience;
- study of one's own interests;
- delegation (teamwork, collection of ideas, their discussion and evaluation);
- bad ideas can later become good ones, they should not be excluded altogether;
- the use of humor and slight exaggerations of the characteristics of the product / service.
Means and tools of creative marketing
Creativity is an inseparable part of effective marketing. It is vital for companies to stand out from the background of competing organizations, attract new ones and retain loyal customers.
Creativity cannot be equated with creativity. Creation of creative solutions is a multi-stage procedure, which is based on thorough research, preparation and evaluation of the market, search and testing of ideas.
In the course of implementing creative marketing, companies use various means and tools.
Figure 1. Means and tools of creative marketing. Author24 - online exchange of student papers
Remark 2
Creative marketing means are aimed directly at the consumer. At the same time, they are divided into those that imply direct personal communication and those that act through intermediaries, material carriers.
A blog is a personal diary on the Internet. It helps to assess the attitude of consumers to the brand, product, to study preferences. It also promotes specific products and services.
Buzz marketing is rumor marketing. An advertising message is distributed through an exchange of opinions between buyers of goods or services. Another name for this tool is word-of-mouth marketing. Consumers spread positive information and thereby promote it. As material carriers use:
- Product placement - a film, book, song in which the promoted product is placed;
- Life-placement and its varieties Ambient media is a common household item (what surrounds us): a mirror, a bench, a flower bed, a lantern, etc.;
- teaser - billboard, streamer or magazine strip;
- mobile marketing – smartphone, mobile phone, communicators;
- Viral marketing - links to pictures, videos, stories sent on the Internet from one user to another.
Remark 3
Creative marketing tools are used to create unusual, bright and memorable events that promote the product and activate Buzz marketing. They include Sense-marketing, which, although it is a creative marketing tool, does not create any events.
Figure 2. Types and characteristics of creative marketing tools. Author24 - online exchange of student papers
Features of the use of creative marketing
The purpose of using creative marketing in the activities of companies is that individual culture and the brand, unlike prices, quality and production technologies, competitors cannot adopt. A brand is a mirror of a company, its values, mission and development strategy. It allows buyers to distinguish the company's products among others, form loyalty and have clear associations with the name of the organization.
When entering the market, it is not enough just to create a brand, it is necessary to promote it in order to make it popular. Even famous brands do not stop advertising themselves that the consumer has not lost interest in them. This is what creative marketing is for.
Remark 4
Creative marketing provides a non-standard approach to solving marketing problems, based on the emergence of new original ideas and making effective creative solutions leading to the future implementation of marketing innovations.
Creative marketing tools are used to make significant changes in the product, its design and packaging, to promote and form new pricing strategies, brand development target segment and product repositioning.
Creative marketing techniques are developed by the forces and capabilities of the company itself. But borrowing ideas from consumers is actively used. They satisfy their needs with the help of available means with the involvement of creativity. This idea is picked up by businessmen as a creative component in the development and promotion of products.
How to "sell" an aspiring artist and provide his business venture with orders? I think that the case below can open the door not only for artists, but also provide a start-up for any small business, if you position yourself correctly target audience and don't follow patterns.
So, again thanks to a letter from a site reader, I have a new blog post and another chance to help. good man in a good start. Moreover, I want to do this because this person is from Ukraine, which I love very much and for which I worry with all my heart!
First, excerpts from a reader's letter:
| Hello! I am a painter. I want to organize a mini-production of exclusive coffee and dining tables. Finances are limited, there are such thoughts: 1) Put it on sale in a store with a similar product. But... Having talked with the owners of such departments, it turned out that they all work under contracts with various factories (Italy, Germany, etc.) and will not take goods from another manufacturer. 2) Website on the Internet. 3) Gave ads for the sale. Does not work. 4) Maybe try direct selling? 5) I thought about my department or an art shop, but it's expensive. If only I knew for sure that this is the right way. Therefore, I would like to have a clear implementation plan for myself. Tell me, please, which direction of implementation is better to choose. Yana |
Jan, thanks for the question. And special thanks for the list of thoughts - it is on this list that we will go, with comments, clarifications, suggestions and a list of other ways marketing communication.
How to start marketing a private entrepreneur engaged in creative production?
1. Website on the Internet - online marketing channel
A website is a must! There are a large number of private entrepreneurs who have only an online sales channel, are only represented on the Internet and sell their products via the Internet.Just making a website is not enough. Need:
- correctly created content (for this, see part eight;
- correct positioning of your product (see clause 3);
- work to promote it on the Internet.
2. Social platforms
A social marketing channel is not only Facebook, but also forums, blogs of those who write about the same.2.1 Social networks. You need actively working social groups of similar subjects. It is unlikely that you will promote your specially created page (but you also need to have it), but a constant presence on interior design sites, "hand made", posts with photos of your work, a video about how you do it is a must.
2.2 Forums. Comment on and answer housewives' questions about how things can be done and how things can be arranged. Give examples, attach photos and… quietly slip the announcements of your work.
2.3 Blogs (own websites, Lifejournal pages, etc.). We are talking about popular blogs of designers, interior designers, developers, those who equip a country house ... in general, all those who, as you think, write something similar.
You need YOUR posts on their blogs (guest posts) and THEM posts about you. It is very difficult to get into their blogs. Write teary letters and ask for a great professional to help a woman and an aspiring colleague in marketing. Let them review your work, criticize it if they need to, and praise it from above, but pointing out your authorship and giving examples of work.
2.4 YouTube. Make a video channel about your work, about how you do it - the nuances of production and creativity, repasting other people's interesting videos. Your task is to look like a marketing expert, an ace, an "artist from God".
3. Announcement of sale
It is very important to sell through an ad and on the site not what you produce, but what BUYERS are looking for - this is the fundamental principle good marketing. Pay attention to it! It is very important to correctly name what you are selling. See, for example, everyone buys MATTRESSES, and there is no need to sell MATTRESSES. It’s not a fact that everyone is looking for a “coffee table” on the Internet, for example, but what are they looking for?Do you know about the Yandex service, which prompts the most popular requests from people over the Internet?
With the help of this service, try to determine what buyers are looking for on the Internet and check yourself - do you imagine exactly what you are trying to sell? The fact is that, often, they are trying to sell not what people are looking for. "Mattresses" and "mattresses" are a textbook example. People might just be looking for "coffee tables" and you might be trying to sell them "Antoni Gaudí style table" and vice versa. On site, in social groups- everywhere, use exactly those words, the number of requests for which is maximum, even if these words do not accurately reflect the essence of your proposal.
4. Department or shop of author's works
Keep thinking! I'm serious…. If, for example, you somehow climb into the GUM in Moscow or in the Passage in St. Petersburg, somewhere in Kyiv on Khreshchatyk - this point will provide you with comfort and fame, unless, of course, you are doing something really noteworthy creative and the bohemian elite, for sophisticated and connoisseurs. It is unlikely that I will give here some practical advice, except, perhaps, one thing - do not think about the scheme: sale by lease. Look for other schemes: renting what stores cannot rent to "normal" retailers: stairs, bathrooms, fixing a table vertically on the wall - something that is ridiculous to take money for. Read about the scheme described in paragraph 6 below.5. Look for any free and budget sites to exhibit your work.
I give only a vector:- unions of young artists, their annual exhibitions and performances;
- programs to support creativity of political parties;
- any government programs support, Western grants;
- municipal exhibitions of creativity, where government officials report on their work with the population and the creativity of the masses;
- weekend fairs and festive festivities in the squares and squares, only you need not "collective farm markets", but something more decent and "enthusiastic";
- beg, beg your friends - owners of cafes, restaurants, boutiques, hotel halls, to put up a demo exposition of your works FOR A TIME (one work + photo gallery + handouts). But just understand that those places where the "creative" and "rich" go are not municipal cinemas and not cafe-snack bars.
6. Put on sale in stores
Get out of the blueprints!! Let the task of "setting for implementation" be combined with the solution of other tasks. Consider the idea of working with stores on several levels at once: put on sale and pay for the space that your product occupies. Yes, directly and clearly offer: “Let it stand for a month. If it’s not for sale, I’ll pick it up and pay you such and such an amount.” In a month, come to another store and do the same with it - as a result, you will immediately (!) Solve problems 5, 6, 7. Naturally, cry that there is not enough money, beg to reduce the cost of such your exposure.7. PR for marketing purposes
Partly continuing the theme of paragraph 2.4 and a little more and a little about something else ...7.1 Accept the fact that people want to see and hear creativity, but not read about it. All creative people are visualists, buyers need to be shown, poured into the eyes and ears of fog from “WOW!, in trend, and the singer has such and such, and the politician praised such and such, the works are made in the style of such and such and are presented in some kind of boutique.
7.2 You must become a fashion artist! You can be fashionable, but you can be reputed! To be fashionable is when the fashionables talk about you, to be fashionable is when you spread rumors that the fashionable think you are fashionable. That's why:
