Interpreting The Performance And Advantages Of Discount Promotion

　　 I. four forms of discount promotion

1, direct discount

Through the direct price discount of a commodity or service, such as ten percent off discount, special sale, etc., are all direct discount sales promotion methods, consumers can clearly know how cheap the product is. The direct discount method can attract consumers' attention and attraction more strongly, and stimulate consumers to make purchase decisions, that is, consumers increase the number of purchases, or change the buying time (early purchase) or increase the frequency of purchase. Usually, the discount rate should at least reach 10%-30% to affect consumers. It is easy to cause price wars among brands, resulting in more sales and less profits.

For brand products with high brand awareness and high consumption and high consumer concern, direct discount sales are especially effective. In the face of such high degree of homogenization of products, the direct discount sale effect can still have some lethality for those famous brands, but for those products with low brand awareness, even if they take a higher discount, it is difficult to achieve a good promotional effect.

2, quantity discount

For those who buy a product or service in large quantities. Consumer A price discount offered. Usually, the price discount is given according to the number of consumers purchased. The more quantity they buy, the greater the discount. The quantity of discount can provide consumers with certain discount when buying a certain product for a certain amount or amount. It can also stipulate that consumers can buy certain products to reach a certain amount or amount, and give certain discount according to the total purchase quantity.

The purpose of quantity discounts is to encourage consumers to buy or buy in large quantities, so they are often used to purchase high daily consumption products with high degree of correlation.

3, additional gifts

When a consumer purchases a product of a certain amount or amount, the manufacturer will attach a similar product or related product to a certain percentage or requirement. "Buy one get one" is the most common way of giving away. Consumers spend two yuan on the cost of a product, which is equivalent to half off discount.

This method can not only be effective. stimulate Consumers can also help speed up sales promoters' sales targets. It is commonly used in consumer goods with low unit price, simple packaging and fast usage.

4, increase the volume not to increase the price.

The difference between the increase in quantity and the additional gift is that the product is packed in the package before the product is released and sold at an open price, so that the customer can buy more products at the same price.

This way can also stimulate consumers' purchase, especially for consumers who are familiar with brands. If they are strange brands or new products, this way of acceptance will be lower.

　　 Two. Discount promotion Advantages

1, promotional effect is obvious.

Price is often one of the major determinants of consumer choice, especially for products with high brand awareness. Therefore, discount is the biggest and most effective way of promoting sales to consumers. Because of the obvious promotional effect of discount, manufacturers often use it as an emergency means to deal with sudden market conditions, fight against competitors' promotional activities, deal with products that are due or over season, reduce inventory, speed up the return of funds, cooperate with merchants, and sometimes are also an emergency means for sales personnel to fulfill their sales targets.

2, promotional activities easy to operate

Manufacturers can design different discount rates within the permitted promotional budget range according to different regions and time. This promotion method has less workload, and the cost and risk are easy to control.

3, the simplest and most effective means of competition.

In order to resist the sales growth of competitive brand products, in order to resist the listing of new competitors or the introduction of new policies, we should promptly adopt a discount method to stimulate consumers to buy this product, reduce their interest in competing products, and seize market share and attack competitors by promoting mass purchase or pre purchase.

4, help to cultivate and retain the existing consumer groups.

Direct discount activities can produce certain advertising effects, create products of good quality and low price, attract consumers who have used this product to repeat purchases, and form a stable existing consumer group.

E, welcomed by customers and promoters.

Discount promotion can attract the flow of people at the retail terminal to stimulate sales of this product and other products. Promoters can also achieve sales of goods through discount sales as soon as possible, and stimulate sales of other non discount products because of the increase of people's flow rate, and speed up sales targets.