Russian Sales and Marketing

Sales and marketing in Russia are part of the country’s new economy. These events are part of Russia’s move toward capitalism and free trade. During the Cold War, these practices were illegal and a feature of the underground economy. The government banned sales that generated a profit or were an attempt to run a business. All services were controlled by the state and followed the rules of socialism.

With the collapse of Soviet Russia, there has been a major increase in sales and marketing by all types of businesses. To succeed, these companies need to understand the diversity of the country. The languages and buying habits of these people are very diverse. These cultures include Slavic, Turkic, Finno-Ugric and Armenian speakers. Developing a presence in these areas is necessary for an effective sales and marketing plan. Unlike the communist system, there is no longer one way to reach a mass audience of consumers.

Sales and Marketing in Soviet Russia

After the Communist Revolution of 1917, the government outlawed all private trading and individual business dealings. Prior to the revolution, Russia had many businesses and successful individuals. Some of these trades included farming, furs and trapping, shipping, carpentry and the sale of oil and minerals. All of these industries became part of the communist government. Marketing these goods was an official part of state propaganda.

Under communism, many of these industries were poorly managed and struggled to survive. The lack of private owners did not encourage workers to produce quality materials. Also, the government’s control of farming did not succeed. There were serious shortages and famines throughout the Soviet Union.

Marketing only existed as a form of politics. People were told to buy certain things for the protection of the communist system. With the arrival of Mikhail Gorbachev and his glasnost policy, there was more opportunity to sell or market certain things. During this time, Western companies like Pepsi-Cola and McDonald’s opened businesses in Russia.

Sales and Marketing in Modern Russia

Today, Russia has a capitalist economy that requires the use of sales and marketing. There are many European and North American businesses now in Russia. Some of these companies include IBM, Microsoft, Xerox, Coca-Cola, Nike, Sony and AT&T.

Selling in this environment requires knowledge of Russia’s many cities. For example, buyers in St. Petersburg have different interests than buyers in Moscow. Companies must market to each of these cities with effective advertising

Since Russia is no longer a closed society, there has been a large increase in the use of advertising as a sales tactic. Examples include billboard advertising, TV commercials, radio spots and Internet campaigns. All of these efforts are a way for businesses to reach millions of consumers in the new Russia.