Interpreting The Limitations Of Discount Promotion

< p > < strong > 1, blindly < a href= "http://www.91se91.com/news/index_c.asp > > discount < /a > can not sell the basic problem < /strong > /p >

P discount sales promotion can increase sales volume and increase market share in the short run, but it can not solve the fundamental problem of sales, but will also mislead the manufacturer's correct understanding of the market, which is not conducive to the adjustment of product structure.

This way will make sales managers indulge in the illusion of sales at the moment, do not think about the way to solve the problem, and even rely on this kind of promotion.

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< p > < strong > 2, and the profit from the loss of discount is hard to compensate for < /strong > < /p >

< p > < a href= > http://www.91se91.com/news/index_c.asp > discount sale > /a > if it can be carried out within the range of profit margin control, if the unrestrained discount caused by the competition between manufacturers will cause the sales of enterprises to sink deeper and deeper, the loss of the discount will be difficult to clean up.

For example, suppose that the profit margin of the product is 20%, and the discount rate is 5% off, the sales volume will be increased by at least 33% of the sales volume. If the discount is 10 percent off, the sales volume of 100% will be increased. If the discount is 15% off, the sales volume of 300% will be increased. If the discount is 20 percent off, there will always be no profit. If you want to think that the competition is so fierce now, the phenomenon of mutual bargain is common. But we must grasp a yardstick.

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< p > strong > 3, frequent discount will cause harm to products and < a href= "http://www.91se91.com/news/index_c.asp" > brand < /a > /strong > /p >

Consumers tend to think that the quality of products that are often discounted will be lower than the competitive brands with high price. They will think that the original price is unreasonable. They will think that the manufacturers will reduce the grade and quality of the products, which will reduce the brand's status in the consumers, reduce the brand's own value and status, and create an invisible obstacle to the price increase of the P.

If consumers or customers are accustomed to the price after the product is discounted, the brand's status in the consumer's mind is the grade and image after the discount.

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< p > strong > 4, discount promotion is not conducive to building brand loyalty < /strong > /p >

< p > because the discount may attract some consumers who are particularly concerned about price, and such consumers are often accustomed to those products that discount, and there is not much loyalty in the brand at all.

Once the product discount sale is over, they may immediately switch to a relatively low price product brand.

However, those who are highly loyal to the brand often feel that their products and brand grades are declining due to the discount of products, affecting their identity and image rather than choosing the brand product.

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< p > < strong > 5, discount promotion can easily lead to price war < /strong > < /p >.

< p > in marketing 4P, price adjustment is the simplest and most effective means of competition in the market competition. However, a high frequency and high frequency discount sale will lead to the vicious price competition among brands, which is not conducive to maintaining the product's price image and reasonable profit margins.

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< p > related links: < /p >

< p > discount promotion operation skill < /p >

< p > 1, choose the right time to promote sales.

For example, the discount sale of drinks can be selected in summer or holidays.

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< p > 2, the time of activity is 2 to 3 weeks.

We should consider the normal buying cycle of consumers. If the time is too long, the price may not be restored to the original position.

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< p > 3, and the amount of discount should account for more than 10-20% of the selling price.

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< p > 4, discount promotion advertising is simple, eye-catching, accurate, lethality, do not use fancy form.

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< p > 5, discount promotion products should choose those products with high maturity, large consumption, high purchase frequency, strong seasonality, close to shelf life, and technology and packaging are in a weak position.

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