From the comparison of global advertising and promotion, the growth rate of promotion expenses is at least three percentage points higher than that of advertising expenses. Take the United States as an example 1980 spent $49 billion on promotion, and 1986 spent $ 102 billion, and the ratio of promotion expenses to advertising expenses was about 64: 36. By 199 1 year, the promotion expenses account for 3/4 of the total marketing expenses, which is about 75%.
The reason why promotional activities cost so much is that people are optimistic about this sales form and benefit from the final effect. Companies are willing to pay for immediate results.
So, what kind of connotation is promotion?
The connotation of promotion:
First, promotion is a short-term incentive activity for customers' purchase behavior;
Second, promotion is a tactical marketing tool;
Third, promotion is profit-driven purchase;
Fourth, promotion is a sales behavior that pursues results;
Fifth, promotion is effective for impulse purchase;
Sixth, promotion is not aimed at building brands;
Seventh, promotion is the embodiment of "Aida Law";
Eighth, promotion is a ballet that jumps on the price lever. Although it is varied, it is inseparable from affordable prices.
Ninth, promotion is a method used to expand sales;
Tenth, promotion is a means of market competition;
Eleventh, promotion is not disguised advertising.
Twelfth, promotion can break the "buying habit" and is a good tool to promote the first purchase;
Thirteenth, the purpose of promotion is not to improve product awareness, but to make customers accept products;
Fourteenth, the highest goal of promotion is to make yourself the first motivation of purchase, and the basic goal is to at least become the driving factor of purchase;
1. Seven market functions of promotion:
① Shorten the process of products entering the market.
The use of promotion means aims to provide short-term incentives to consumers or distributors. In a period of time to mobilize people's enthusiasm for buying, cultivate customers' interests and hobbies, and let customers know about products as soon as possible.
(2) encourage consumers to buy for the first time to achieve the purpose of use.
Consumers generally resist new products. Because the initial consumption cost of using a new product is twice that of using an old product (once you are dissatisfied with the new product, you have to spend the same price to buy the old product, which is equivalent to spending two prices to buy a satisfactory product, so many consumers psychologically think that buying a new product is expensive), and consumers are unwilling to take risks to try the new product again. However, promotion can make consumers reduce this risk awareness, reduce their first consumption cost and accept new products.
③ Encourage users to buy again and establish consumption habits.
When trying out products, consumers may be willing to reuse them if they are basically satisfied. But this willingness to consume must be weak and unreliable in the initial stage. Promotion can help him realize this wish. If there is a continuous promotion plan, the consumer groups can be basically fixed.
④ Improve sales performance.
Undoubtedly, promotion is a kind of competition, which can change the habits and brand loyalty of some consumers. Driven by interests, both dealers and consumers may purchase in large quantities. Therefore, in the promotion stage, consumption and sales are often increased.
⑤ Aggressive and anti-aggressive competition.
Whether enterprises launch market aggression or market entrants launch anti-aggression, promotion is an effective application means. Market intruders can use sales promotion to strengthen market penetration and accelerate market share. Anti-intruders in the market can also use sales promotion to achieve the purpose of blocking competitors.
⑥ Drive the market of related products.
The primary goal of promotion is to complete the sales of promotional products. However, in the promotion process of product A, it can promote the sales of related product B. For example, the promotion of tea can promote the sales of tea sets. If more coffee pots are sold, the sales of coffee will increase. In Shanghai in 1930s, American oil companies gave kerosene lamps to consumers free of charge, and as a result, their kerosene sales increased greatly.
⑦ Festival rewards.
Promotion can make products icing on the cake during festivals or corporate celebrations. Whenever a routine festival comes, or an enterprise has a major celebration (and listing), promotion can express a kind of reward and celebration from market participants to consumers.
2. The goal of marketing promotion.
On the market side, the promotion targets are orderly. For manufacturers, there are three promotion targets: wholesalers, retailers and consumers; For wholesalers, there are two promotion targets: retailers and consumers; For retailers, there is only one promotion goal; Namely, consumers. It can be seen that different market players have different promotion goals, and at the same time, they also constitute different levels of promotion types.
There are three types of promotions:
① Primary SP: promotion of wholesalers by manufacturers; Promotion of retailers by manufacturers; Manufacturers' promotion to consumers; Wholesaler's promotion to retailers; Wholesalers' promotion to consumers; Retailer's promotion to consumers.
Features of the first-level SP: single-level promotion.
② Secondary SP: promotion from manufacturer to wholesaler to retailer; Manufacturers' promotion to retailers and consumers; Manufacturers' promotion to wholesalers and consumers; Wholesale to retailer to consumer promotion.
Features of secondary SP: two-stage promotion.
③ Three-level SP: promotion from manufacturers to wholesalers to retailers to consumers.
Three-level SP features: three-level promotion.
3. Marketing methods at the forefront of the market.
Promotional means, such as executive tools, are effective means for enterprises to transform the market and improve their performance. After research, here are 9 ways to promote sales (SP):
① free SP
"Free SP" refers to a promotion method that does not charge any fees to the target customers. It includes two forms:
A, free bonus-mainly "reward package".
B, free trial-mainly "free samples".
The so-called "reward packaging" refers to a packaging form that provides consumers with more value on the basis of standard packaging.
Extra packaging, that is, adding extra weight to the packaging, is free of charge.
Packaged giveaway refers to putting the giveaway in a package and providing it to consumers free of charge.
Give away outside the package, that is, the gift is bundled or attached to the package and provided to consumers free of charge.
Functional packaging, that is, packaging has more than double use value, which can be used not only as packaging, but also for other purposes.
The so-called "free sample" means that the product is directly provided to the target object for trial without any reward.
The most important issue in implementing "free samples" promotion is how to distribute samples to target customers. There are usually eight distribution methods:
② gift SP
"Gift SP" refers to a promotion method that target customers give preferential treatment when purchasing products.
Buying a gift is buying a gift. Customers can get a certain number of gifts as long as they buy a certain product. The most commonly used methods, such as buy one get one free, buy five get two free, buy one get three free.
If you change a gift, you will get a gift if you buy compensation. As long as customers buy a product and make some compensation, they can switch to other products. For example, exchange a little money for a new one, add 65438+XXX products from 0 yuan, and then spend 10 yuan to buy another one.
Return the gift, that is, the purchase is up to standard and the profit is returned. As long as customers buy or buy a certain amount, they can get rebates or gifts. Including consumer cumulative consumption rebate and dealer cumulative sales rebate. If the purchase amount reaches 6.5438+million yuan, the rebate will be 5%. Buy 10 goods, give away 1 goods, and return the price once after spending more than three times.
③ discount SP
"Discount SP" refers to giving different forms of price discounts to target customers when they buy products.
Discount coupons, commonly known as coupons, are an ancient and popular way to promote sales. Coupons are generally printed with the original price, preferential ratio, purchase quantity and effective time of the product. Customers can use coupons to buy and get benefits.
Discount card, that is, a long-term effective discount certificate. Generally, it exists in two forms: membership card and consumption card, so that card-issuing enterprises can maintain long-term consumption relationship with target customers.
Current price discount, that is, discount sales on the basis of current price. This is the most common and effective means of promotion. It can make customers get visible benefits and be satisfied on the spot, and at the same time, sellers will also get satisfactory profit targets. Because the current discount process is generally a bargaining process. Through bargaining, we can achieve the goal of mutual satisfaction.
Selling at a reduced price refers to lowering the price of a product within a certain period of time and selling it at a special price. One of the characteristics of sales is stage. Once the promotion purpose is completed, it will return to the original price level. Price reduction promotion is generally only implemented at the market terminal. But once manufacturers get involved, it may be a long-term promotion strategy. There are usually three sales forms: package price reduction label, shelf price reduction label and sales notice.
Price reduction competition means cutting the current price, giving way to the market and gaining a competitive advantage in sales. Price reduction competition is different from current price discount. Current discount is a tactical promotion, while price reduction competition is generally a strategic promotion, which is greater than current discount in scope, quantity, scale and duration. Price reduction competition can be said to be a strategy to participate in market competition at a new price. It is the "killer" to launch fierce competition in the market.
Low cost management, that is, selling products at a level lower than the current market price. Low-cost operation is a sales strategy, and its overall price level needs to be lower than other operators in the long run. And from the beginning, low-cost operators should be listed at preferential prices. In the long run, although low-cost operation is a partial meager profit, this promotion strategy can strongly attract consumers and achieve the goal of overall profit.
Big auction sale, commodity auction is to sell goods at abnormal prices at low prices; The sale of goods is also sold at a lower cost or at an abnormal price. Auction and auction are both price-driven strategies. For merchants, big auction and sale are another clearance strategy. Through a big auction or sale, we can attract consumers, stimulate people's desire to buy, and digest the backlog of goods in a short time.
④ Competitive SP
"Competition SP" refers to a promotion method to attract target customers by holding interesting intelligence contests by taking advantage of people's competitive and curious psychology.
The prize-winning solicitation question-and-answer contest is a promotion way for the contest sponsors to attract consumers to participate through solicitation activities or prize-winning question-and-answer activities. Promotion competition is an activity in which talents participate and gain the interests of consumers. The winner of the final must be the best in the competition. Such as advertisement solicitation, trademark design solicitation, composition contest, name translation contest, etc.
Quiz competition, that is, the sponsors of the competition hold a quiz on a certain ending to attract customers to participate in a promotion method. Such as quiz, sports winning quiz, natural phenomenon quiz, debunking quiz, etc.
The winner selection competition refers to the competition held by the sponsors to attract fans to participate and finally select the winner. For example, beauty contests, bodybuilding competitions, star selection competitions, image spokesperson trials, and drinking competitions.
Stamp accumulation contest, that is, the sponsor of the contest designates the target customers to exchange gifts by collecting product stamps for a certain amount within a certain period of time. Printing dot is an ancient and influential promotion technology. As long as the customer has a certain amount of vouchers (that is, stamps: trademarks, labels, bottle caps, stamps, tickets, packaging, etc. ), they can get different gifts or rewards according to the number of stamps.
There are three main participants in the competition SP, and the promoters of the promotion competition should choose the target customers to participate according to their needs.
① active SP
"Activity SP" refers to the promotion means to attract customers' attention and participation by holding activities related to product sales.
Press conference, that is, the event organizer holds a press conference to achieve the purpose of promotion. This method is very common. It uses the media to release news to target customers, inform them of their commodity information, and attract customers to actively consume.
Commodity exhibition, that is, the event organizers achieve the purpose of promotion by participating in trade fairs, ordering fairs or holding product exhibitions by themselves. This way can be held regularly every year, which can not only achieve the purpose of promotion, but also communicate with the network and publicize products. This method can also be called "conference promotion".
Lottery lottery, that is, customers give several reward opportunities when buying goods or spending. It can be said that lottery and lottery are both activities to increase luck and gain benefits for consumption. There are many other forms of this promotion, such as scratch card redemption, lottery redemption, tab redemption, package hidden prize and so on.
Entertainment and games, that is, by holding entertainment activities or games, attract customers with fun and entertainment, and achieve the purpose of promotion. The promotion of entertainment games needs careful design by the organizers, and activities cannot be divorced from the promotion theme. Especially when products are inconvenient to advertise directly (such as cigarettes), this promotion method can be more direct and tortuous. For example, holding large-scale concerts, sponsoring sports competitions and holding treasure hunting activities.
Making events means making events with communication value, making them socialized, news-oriented and hot, and promoting sales through news hype. "Activity promotion" can attract the public's attention, thus arousing the interest of target customers in products or services related to activities, and finally stimulating customers to buy or consume. If the events created can cause widespread controversy in society, then "event promotion" will achieve a satisfactory result.
② Win-win SP
"Win-win SP" means that two or more market participants realize mutual benefit through joint promotion. In other words, the promotion activities jointly organized by two or more enterprises for mutual benefit are "win-win SP".
The success of "win-win SP" is based on complementarity, mutual benefit and unity.
Such as the "win-win SP" cooperation between MCI Telephone Company and Northwest Airlines. Every customer who makes a long-distance call to MCI will get five-mile flight points for every $65,438+0. If the points reach 20,000 miles, Northwest Airlines will provide 65,438+0 round-trip air tickets for any domestic flight. Of course, MCI will give Northwest Airlines some compensation.
The joint objects of "win-win SP" can be combined horizontally or vertically. However, they are generally freely combined among the three formats. The three formats have formed a formation of interactive promotion.
③ Direct effect SP
"Direct effect SP" refers to the promotion method with certain direct effect. The characteristics of "direct effect SP" are on-site and in person. Through these two characteristics, we can create a strong sales atmosphere.
Sell some advertisements, that is, POP, and post and hang posters, flags, logos and billboards at the sales site. Through these on-site communication methods, the product atmosphere is set off to promote sales.
Direct mail shopping guide, DM for short, guides customers to buy a certain product by direct mail. However, direct mail shopping guide needs detailed customer information or postal services, otherwise it cannot be implemented.
Product display, that is, on-site display of the characteristics and advantages of products, urges consumers to buy what they see is what they believe. Product display is a direct way to promote sales. Demonstration can satisfy customers' vision, hearing, smell, taste and touch organs, thus satisfying their psychology and realizing instant purchase.
Product display, that is, through the display of products at the sales site, attracts consumers with an eye-catching and exciting situation. Product display should follow three elements, namely, display location, display quantity and display surface.
Propaganda newspaper, that is, a newspaper or leaflet that publishes product content and service content, is used to guide shopping and promote sales. In propaganda newspapers, there are not only detailed introductions of products or services, but also discount coupons are often printed to stimulate people's consumption.
Business commission refers to the sales commission, commission or bonus given to business units and business personnel in order to mobilize the enthusiasm of business personnel to sell products. This promotion is usually provided extra. Its purpose is to urge business personnel to recommend their products to customers, so as to achieve the purpose of promoting sales.
Franchise, that is, product priority, customers can pay after they are satisfied within a specified time. This promotion method is similar to deferred payment, but the difference is that joining belongs to "use first and pay later", based on customer satisfaction. If customers are not satisfied during the franchise period, they can return the goods unconditionally. Franchise promotion can fully embody the spirit of CS.
Celebrity promotion refers to promoting sales by inviting celebrities to visit websites. Celebrity promotion has the effect of celebrity advertisement. But celebrities generally only help to promote products related to themselves, and will not sell the scene for no reason. For example, book signing, video product signing, celebrity opening ribbon cutting.
④ service point
"Service SP" refers to the promotion means to safeguard the interests of customers, provide them with some preferential services and facilitate their purchase and consumption. It can be said that "service SP" can best embody the concept of customer satisfaction and is the concrete embodiment of CS doctrine.
Sales service, that is, pre-sales consultation and after-sales service. Both pre-sales consultation and after-sales service can achieve the purpose of promotion.
Open-shelf sales, that is, the use of open-shelf, so that customers can freely choose goods. Open-shelf sales can stimulate customers to buy impulsively and buy enough at once.
Commitment to sales is to give customers a promise, so that customers can increase their trust and customers can buy with confidence. If the promise of refund and the promise of selling three guarantees are invalid, the risk awareness of customers can be reduced and the purpose of promotion can be achieved.
Ordering customization means ordering products or customizing products for customers. This special service can make customers feel god and superiority, and also embodies the purpose of serving SP.
Door-to-door delivery, that is, the products purchased by customers are transported to the designated place free of charge, or consigned on their behalf. Home delivery is one of the basic service forms of service providers.
Free training, that is, free education on product knowledge and usage for customers. After the product is sold, free training is usually a free service.
Maintenance and installation, that is, to provide customers with product installation and debugging services and maintenance. Maintenance and installation is the key to SP, and it is also a concern of customers. Setting up fixed-point maintenance outlets is a better way to carry out maintenance and installation services.
Installment payment, that is, customers can pay for the purchased products in installments according to the specified time. The use of installment promotion is generally only used when selling high-priced products. This method can alleviate the economic situation of customers and maintain their lasting ability to pay. Such as bank mortgage, has a great role in promoting building sales.
Deferred payment means that customers can pay for the purchased products within a certain period of time. Unlike installment payment, deferred payment is generally only a one-time payment, which is paid in one lump sum within a specified time. Deferred payment can temporarily alleviate the customer's financial situation and give customers enough time to raise funds. Deferred payment promotion can attract customers who have expectations for products but are temporarily unable to pay.
Membership management, that is, commodity operators can enjoy internal preferential treatment by adopting consumer membership. Membership system generally lists detailed membership terms, welfare terms and a certain membership fee. Members enjoy the rights of shopping, consumption, security, service and discount. Membership system can keep its basic customers and keep the operation stable.
⑤ Combined SP
"Combination SP" refers to the combination of two or more promotion methods to achieve a more efficient promotion means. As we know, there were eight promotion methods before, each of which can be combined with the other seven promotion methods, so that the combined SP can reach 49 forms.
However, we also found that some SPs are not easy to combine organically, such as free SP and discounted SP, which have certain contradictions, so they cannot be twisted together in promotion. Therefore, when we use the combined SP, we should choose different ways for reasonable configuration. Or, use SP at different stages to make the promotion more continuous and gradual.
For example, General Mill, a new grape crisp cereal, adopted an effective sp combination in order to open the market. First, they use "free samples" to send them to consumers by direct mail, and attach a 7-cent discount coupon to the samples packed in 1.5 ounces. In this way, when the consumer is satisfied with the sample, he can immediately take the coupon to the nearby store to buy it. Facts have proved that this set of promotional "combination boxing" is very successful in the market.
To sum up, the promotion methods of the first line of the market have their own strengths and are not eclectic. With the intensification of market competition, the increasingly updated technology and the flexible display of creativity, there will be more ways to promote sales. It should be emphasized again here that the strategy of market aggression will appear in the front line of the market sooner or later. Therefore, the competition of the first-line market players is related to the life and death of enterprises.
Promotion activity control operation flow
I. Negotiations
Negotiation is a process of communication and persuasion between two or more parties to achieve their respective goals, so our negotiation mainly includes the following aspects.
(1) venue fee: the venue fee should be considered first, because the fees of different venues vary greatly. Even for the same venue, the fees may be different because of different locations.
(2) Quantity of supply: If you want to cooperate with pharmacies or retailers, you must talk with each store about the quantity of goods you need and the way of cooperation.
(3) Retail price control: Sometimes the retailer sets the price of your goods lower than the promotion price, so your promotion can't be carried out at all, and you can only rely on communication and coordination between you and the retailer.
(4) Activity process control: Activity process control is not only our own business, but also needs the help of retailers to participate in the preparatory work.
For promotion activities, we must do the following:
1, Tools: You should prepare your own tools, such as markers, tapes, pushpins, etc.
2. Publicity materials: (1) Category: posters, product brochures, flags, banners, umbrellas, newspapers, invitations, etc.
(2) Function:
First, save time and explanation
B, establish a good brand image
C, stimulate consumers to buy
(3) Factors affecting the success of promotional materials.
A, the display point must be eye-catching and safe.
Modeling design, simple and generous, can quickly transmit information.
C, height position, too high and too low are not suitable for reading.
D, the size should be discussed with the retailer, otherwise the retailer thinks you are too big or too small.
E, cooperate with products and environment, and give consideration to products and environment.
F. Aspects needing attention: 1 Creative and bright, surpassing competitors; 2 the display time will affect its effect; 3. timeliness.
3. Training and management of sales promotion personnel: Some sales promotion personnel are temporarily recruited, and even employees of the company need this promotion training. For example:
(1) Formulate operation rules.
(2) The content and time of the activity.
(3) the job responsibilities of the promotion staff.
(4) On-site arrangement of activities.
4. promotional gifts.
5. Activity execution and control:
(1) displays "five comparisons"
(2) On-site inspection and monitoring of activities: In addition to promotion personnel, management personnel should also conduct on-site inspection. The main functions are:
First, patrol and deal with emergencies in time;
B, keep normal display;
C, ensure the use of promotional materials;
D, promotion personnel to implement the specification.
Second, promote execution
When patrolling the activity site, we should consider checking the following questions:
1, correct product mix: whether it is our ongoing promotional product;
2. Correct form: whether the promotion form is correct and whether the product display form is correct;
3. Correct position: Whether the product display position is stipulated in the promotion agreement;
4, the position is correct;
5. Correct marketing tools: whether marketing tools help to increase sales;
6. Correct information transmission:
7. Correct promotional information: convey it to consumers in the right way.
8. The correct price.
At the same time, we must first look at what consumers need. Whether customers can remain loyal depends on the value they want. If we want to build loyalty, we must formulate the following norms.
(1) Companies must be everywhere, in other words, companies must be out of reach when customers need them.
(2) The company should never ask questions, argue or try to change the behavior of customers.
(3) Leave a certain profit margin to alleviate social and environmental problems.
Third, the promotion cost management
In order to carry out effective planning and control, we must first find out which activities expenses can be classified as promotion expenses, and then subdivide the various expenses of promotion activities. Only by completing these two steps can we start an effective budget.
The promotion budget and control also includes the following steps:
1. Establish the company's promotion goal, that is, how many products can be sold and how much profit can be made with the money spent.
2. Confirm the goals and strategies, so that the company can achieve the expected goals.
3. Decide the amount of expenses.
4. Understand the opinions on the spot in time and make an emergency budget.
Fourth, the management of sales promotion personnel.
In order to form an effective promotion team, we must have a complete set of procedures to help us improve our work, from the selection of promoters to their training, and then to the supervision and evaluation of the whole promotion team. Here, we will introduce the work of the promoters.
1. Selection of promotion staff: A dynamic and experienced promotion team is the icing on the cake, so the work of the promotion staff includes the following aspects:
(1) product and store maintenance: maintain the display of the company's products and ensure the placement of goods.
(2) Layout of promotion venues: such as supermarket cards and flags posted on posters.
(3) Promotion: promote the company's products to customers and stimulate their desire to buy.
(4) Finish and hand in the work report in time.
2. Training of sales promotion personnel.
No matter how good the product is, no matter how good the promotion activity is, if there is no good promoter to show it to consumers, it will still not stimulate consumers' desire to buy. Whether the training of promoters is in place and the service attitude is good or bad is directly related to the success or failure of promotional activities. Therefore, the training of promoters is very important, mainly including the following contents:
(1) Basic background and skills training.
A, company background and business philosophy training;
B, product knowledge training: such as the selling points and usage methods of products. ;
C, process training;
D job responsibility training for promoters: including sales explanation, activity explanation, timely replenishment, etc.
(2) Sales skills and after-sales service training:
A. Training of service attitude and sales skills: if customers say hello, how to answer customers' questions, how to judge whether customers are willing to buy, how to deal with impolite customers, etc.
* Work attitude: mutual benefit and win-win, neither humble nor supercilious.
* Speaking skills: clear and steady tone, positive and flexible response.
* Listen: Listening carefully shows your respect for customers.
* Smile and praise.
* control time; Arouse customers' interest in products in the shortest time.
* Targeted greetings.
* Sincere equality: don't expand the efficacy of the product, be objective and clever.
How to respond to difficulties, skills;
* When rejected by customers: relax and say goodbye politely.
* When customers are dissatisfied with our products and enterprises, we should relax, avoid tension and inevitability, treat them correctly, respect customers and listen carefully.
* When the price of the product is too expensive:
B, clear the conditions for giving gifts, and prevent gifts from being sent by mistake, over-delivery, over-delivery and under-delivery.
C, clear reward and punishment system and reward and punishment measures, in order to avoid not sending gifts and promoters dereliction of duty.
3. Sponsors can monitor and evaluate standards.
The monitoring of sales promotion personnel is mainly to check the service attitude and methods of sales promotion personnel, mainly in the following aspects:
* instruments; Whether it is in accordance with the requirements of the company, etc.
* Language: whether to use polite and standardized language.
* Service: whether first-class service is provided.
* Administrative discipline: such as attendance, being late and leaving early, improper dressing, chatting, eating and other bad behaviors.
* Store maintenance.
* After-sales service: know whether the problem can be solved in time.
Evaluation of verb (verb's abbreviation) activity effect
The evaluation of promotion effect is a very important stage, which does not exist after the promotion, but runs through the whole promotion process.
Evaluation activities are basically divided into the following four aspects:
1, the achievement of the goal set by the activity.
2. The impact of the activity on sales.
3. Profit evaluation of activities.
4, the establishment of brand value.
5. Result analysis: statistics, analysis and diagnosis.