Proper Promotion Of &Nbsp; Business Is Still King.

At the end of 2010, the new year's blockbuster "let the bullets fly", a director Jiang Wen's line: "I want to stand and earn money" became the most popular phrase at the end of 2010.

It is indeed a pleasant thing not to bow down and earn money without violating the original intention, but when the surrounding environment is "kneeling" to earn money, how to "stand" to make money and become a unique one is a confusing thing.

In the sale of home textile terminal, which has already reached the white hot competition, "discount or gift giving" is not only a common means of competition, but also a piece of "heart disease" that dealers can't catch up with. For many dealers, discount sales or promotions are used to increase the sales of stores. Just like the "kneeling money" made by Tang Shi Ye in "let the bullet fly", although money has earned, it has only earned 3 percent, but has lost its reputation and reputation.

Nowadays, more and more dealers complain that competition is fierce and business is hard to do.

To do promotional activities is to "seek death".

Is it true that dealers now have only two ways to "seek death" or "wait for death"? Although this is a heavy statement, it reflects the dilemma of the current home textile distributors.

Differentiated customer segmentation

It is now in the early days of the Spring Festival. At this time of the year, businesses are aiming to rush through the year.

Several large shopping malls found that the bedding areas in the shopping malls had already hung up slogans for discount promotions, "full court 50 percent off", "full 200 return to 100", and "3 fold in the whole".

Discounts are tempting, but sales are not satisfactory.

The sales staff of AUSSINO brand said: "before the new year's day, the discount activities have already started, the discount is very strong, but the market reaction is not strong, and the customers' enthusiasm for buying is not high."

Why do consumers not buy such a big discount? The famous marketing expert Liu Hanlong explained: "generally speaking, customers can generally be divided into the following five categories: first, customers who like the brand goods very much; second, customers who do not like the brand goods; third, those who like the brand, but also have the purchasing power, but feel that the price is not suitable for customers; fourth, like the brand, but there are other better choices of customers; fifth, like the brand, but can not afford to buy customers."

From the above analysis, it is not difficult to see that the first type of customers are merchants who do not need promotion and will also purchase behavior. The second type of customers is no matter how promotions the merchants do not have, and the fifth category belongs to the "junk customer" in the store sales. The more customers, the less profits the business will have, and the closer it will be to the closure.

Therefore, there are only third categories and fourth types of customers who can really stimulate buying behavior through price reduction or promotion.

It can be seen that some customers are merchants who do not need promotion and will take the initiative to buy them. Some customers are no good no matter how businesses sell.

Therefore, discount or promotion is not effective for all customers. Businessmen should have a clear demarcation of brand customers.

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Proper sales promotion is the main business.

In fact, in addition to finding out the timing and channel of profit making promotion, the key lies in usual business.

The sale of exclusive stores is usually divided into "usual business sales" and "sales promotion activities". The relationship between them is complementary and mutually reinforcing.

Peacetime business is to accumulate popularity for promotional activities, and promotional activities are doing propaganda for peacetime business.

If we can not properly handle the relationship between them, we can only create a vicious circle between them.

The brand finally entered the blind alley of "seeking death" and "waiting for death".

Short term sales promotion has an immediate effect on stimulating the sales volume of stores. However, when operators regard this method as the most effective magic weapon and rely on this way for long-term sale, the result is that consumers who often taste discount will not be willing to "spend money in vain again" at the next purchase.

Long term use of this way will not only make sales promotion lose its effectiveness, but also allow customers to reposition the value of the brand. It will think that "you" is not worth that money! Actually, consumers' cognition of brand is very simple, and price is equal to value. Once the price of commodities has been lowered for a long time, it means that the value of the brand is going down along the way.

According to the relevant survey, 52% of consumers do not have brand loyalty for frequently discounted brands. Frequent discount sales will drive away the old customers with high loyalty, leaving only some new customers with low loyalty.

In the long run, the number of old customers will be less and less. In the sales of stores, the cost of developing a new customer is six times the cost of maintaining an old customer.

After such a group of customers is formed, the result will only be a substantial increase in the sales cost of the stores, and a reduction in the sales profits of the stores, which will eventually lead to no profit for the merchants.

Liu Hanlong suggested that if the price of the product is higher than the average level of the industry, businesses can make more efforts in decorating the store, and constantly strengthen the selling points of brand, style, quality and service. The effect will be far greater than the simple price promotion; if the price of the product is in line with the average level of the industry, but the brand awareness is not high, and the homogenization phenomenon of the products is more serious, businesses can do short-term promotional activities, such as anniversary celebrations, large festivals, etc., the frequency can not be too high, 3~5 times a year; if the price of the product is lower than the average level in the industry, and the quality can reach the general standard of the industry, then the merchant can spend the promotion cost on decoration and publicity, and increase the popularity of the brand.