How Can The Marketing Efficiency Be Maximized?

The marketing operation cost of enterprises can be divided into two parts: rigid operation cost and flexible operation cost.

Rigid operation cost is the necessary guarantee for the operation of marketing system, such as normal channel cost, channel member policy, channel staff cost, flexible operation cost, that is, variable operation cost of marketing system, such as channel and consumer promotion cost.

Enterprises should avoid profit margins.

How to maximize the rigid cost efficiency becomes the key way to solve the problem.

Wahaha's maximization of marketing efficiency is worth learning by many enterprises. The foundation and root of Wahaha's marketing efficiency maximization comes from Wahaha's product mix.

For example, Wahaha has only a few product ads to stimulate sales of a series of products, and in the same channel system, Wahaha will have multiple related products and sell at the same time.

Therefore, in the face of the risk of raw material price rise, the resistance ability of a single category of enterprises is weaker.

Its bottleneck and root is that its product category is too single and lacks effective product mix.

We take two enterprises that produce calcium supplements for infants and young children as an example.

A enterprise is the first brand of infant calcium supplement industry, and its market share is far ahead of other brands.

In the face of the pressure of rising raw materials, enterprises must raise prices to ensure profits.

However, as a A enterprise that has been playing the world under a single category, it is facing difficulties: to ensure the profit of the channel, it is difficult to reduce the rigid cost. In order to reduce the risks brought by the price increase, the follow-up sales promotion to the channels and consumers will increase the input of flexible cost and swallow the profits of enterprises.

Competing products will also take advantage of phased intrusion and encroach on some weak terminals of enterprises, which will lead to lower terminal coverage and lower sales volume.

B enterprises, which belong to the functional food industry of infants and young children, have greater operating space than A enterprises in the face of pressure.

Because B enterprises in addition to infant calcium supplement products, but also have infants and young children's fire products, infant functional rice noodles and other categories.

There is a high degree of correlation between the three categories of products in B enterprises.

The performance is as follows: three major products operate in the same channel, and the market is operated by the same sales team.

In order to raise the price, B enterprises have adopted the following strategies: 1., adjust the prices of three major categories in order to reduce the rebound in the price of the products; 2., amplify the sales promotion policies for the products of price increase, drive sales of three categories with a category, and ensure the promotion efficiency is greater; 3., at the same time, appropriately promote the promotion policy of the next stage price increase products, so as to reduce some promotion costs; 4., implement temporary incentives for the same sales team during the period of price increase, so as to improve the efficiency of the personnel.

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It can be seen that B enterprises have more advantages in resource integration and utilization than A enterprises.

The root of its advantages is derived from the highly related product mix, which makes the integration and utilization of resources become a reality, and ultimately dilute the rigid marketing operation cost and effectively reduce the flexible cost.

At the same time, if enterprises want to improve the efficiency of channel operation through effective product mix, it is essential to learn to make full use of existing channel resources for product mix.

Therefore, we can sum up the principles that should be followed in improving the product extension of a single category enterprise.

Principle 1: product category belongs to a subdivision industry.

A baby's functional food brand if the introduction of infant formula category, consumers may be very difficult to accept, because infants and young children's functional food and infant formula for consumers, does not belong to the same subdivision area, consumers are difficult to recognize the new extension of products, to reach the approved education costs will be very large.

Principle two: product categories can be circulated in the same channel.

This is the most important principle to maximize the utilization of channel resources. It is worth noting that many enterprises do not have a deep understanding of this.

For example, dairy products and beverages belong to fast moving consumer goods. The core terminals are basically business super stores and store stores, but the distributors of these two categories of products are quite different.

Therefore, the new product category can be circulated in the same channel. We should ensure that every link of the channel can be shared.

If it is the same type of dealer, there is a difference in terminal type, which is not to dilute the rigid cost, but to expand the rigid cost.

Principle three:

The category can be run by the same team.

Different product categories

The differences in the way of operation also require differences in the capabilities of the team, even for seemingly similar product categories.

In order to promote new categories, the cost of team building should be immeasurable.

For example, the operation mode of infant nutritious rice noodles is similar to that of infant milk powder, and the channel type is similar, but the operation method is different.

Medical promotion of infant formula is an important means of promotion, while the profit space of infant nutritious rice noodles is difficult to support the cost of medical promotion.

Therefore, the team of infant nutritious rice noodles is often not good at medical promotion.

Team adaptability to product category is often ignored by us.

To sum up, a single category of enterprises should reduce the pressure brought by the rising price of raw materials and avoid the profits engulfed by them. The product mix is the foundation. The principle of high relevance and diversity is the principle, and the integration and utilization of the original marketing resources is the goal.

To avoid profit swallowing, product mix is the foundation. The principle of high relevance and pluralism is the principle. The integration and utilization of the original marketing resources is the goal.