Why Does Channel Promotion Cost Become "Mad Dog"?

In some enterprises, the sales promotion expenses of the season or the month will be charged to the dealer's payment directly in the next quarter or the next month after verification.

That is to say, they are more likely to be offered and sold through the way of money, instead of converting the promotional cost of settlement into promotional products or non promotional products such as regular products and new products.

Obviously, this gives dealers more initiative, and also makes dealers feel very clear: anyway, the goods I enter are basically running products of sales volume, and they do not need much effort in regional penetration, terminal coverage, bar code distribution and so on. Sales and expenses can ultimately be guaranteed.

Not long ago, Li Zhengquan studied in a certain enterprise and a regional market. When the local market dealer Ma Chang saw us, his eyes were bright. He thought he was "on the top". Even the local district manager was at the scene. He also ignored us and poured water on us.

For a moment, "my money is not in the Shang Chao, but in the warehouse.

Now, our warehouse is still holding nearly five months worth 5 million of inventory, but by the end of the month, the office wants us to get 1 million of the goods. "I will know that the regional manager is under pressure and can not blame them, but can the company leaders see our dealers as" people ", do not let us stock up and do not buy goods. After one or two days, we will send people down to check us and find out our promotional expenses.

At this time, the company's entourage took a look at the regional manager who was green and red. He could not help but burst into a row and interposed. "Ma, you dare say that more than 80% of your inventory is not a promotional product."

The bottom line is that if you want to fight a willing sale, you need to plan your own goods unreasonable, and only focus on hoarding products with sales promotion. If you enter the goods and do not actively distribute, it will result in such a large inventory today.

Dealer Ma is a smart man. He is embarrassed to hear this.

The problem that this small case reacts exists in many enterprises.

That is, every quarter or every month, we sell products that are subsidized by various means, and most of them are in the area of regional managers.

The first thing that the sales team thought of was to squeeze the dealers' stock and funds through promotion and inducement, seldom considering or even thinking about them. The cost to these products was to increase the efficiency of channel distribution and channel marketing.

In this way, it becomes a dealer only. No matter when the dealer is out, the promotion cost of the season and the month is not easy to use on the knife edge.

Li Zhengquan encountered such a company, its multiple product categories have a total of 120 SKU, design promotion activities every month, the regional offices, less than 60 of a few of them for the design of a channel sales promotion activities, mostly for nearly 100 single products were designed promotional activities.

The two points are different from the six points.

This is no doubt a way to get rid of the category of sunshine award.

In this way, the problem is coming out: Class A stores calculate that you have all the 120 single products all out, do you know that every month 80% of the products are doing the upper shelf, making the stack and making the special price; the B shop calculates that you produce 80 single products, the C shop 40 single products, the D class shop 10 single products, even if each cost promotes the terminal and the two batches, the 60 to 100 promotional products of this design can not be used.

Let's not say that the more we enter the CD shop, the more the products that the terminal stores enter the "hard currency" type products. What is the emphasis on the sales promotion of the design channel and the salesmen of the distributors and distributors? What is the guiding significance of the main products? What is the purpose of the new product guidance and distribution? Even though we can make up for these problems through the dealer performance evaluation, such as the main items such as the completion rate, etc., how can we ensure that the performance oriented and practical two skin problems can be guaranteed?

Coordination and execution? Even if the dealer is obedient and willing to work, how much capability and resources does it have to carry out the activities of so many promotional products for the two batch and terminal?

This is a topic we have to think about.

There is dependency, thinking and behavior have inertia.

Many enterprises do promotions of channel promotions in general with consumers. There are promotions and activities in the season.

Over a long period of time, the cost of channel promotion has been pformed into a part of the price. Not only the distributors, but also the sales promotion fees of the five or six points that the dealers themselves have begun to think, are actually the gross margin of the extra allowance to the distributor, rather than the market operation cost for canal distribution and channel marketing.

The promotion cost of the channel is finally regarded as a safe and reasonable price and gross profit compensation.

In this way, the purpose of channel promotion is varied, and the purpose of using variant is difficult to achieve.

For the vast number of dealers, they are basically in a state of waiting - and so on, when the activities of promotional products are planned, they begin to purchase.

Because I don't need to see clearly, the goods I enter today are hard to guarantee, and I will lose several points because of promotional discounts tomorrow.

This obviously caused another sequel, that is, the distributor's demand plan is very concentrated, resulting in the pressure of the production, logistics and distribution of the enterprise is very large, which affects the order fulfillment rate from the dealer to the terminal.

The size of the check power is directly proportional to the execution result.

Even if we are still insisting on the verification, if there is no three level inspection department or clear functional inspectors from headquarters to branch offices, if the inspection work can not be normalized, if the inspection mechanism is not sustained and effective operation, there will be great problems in the use of channel promotion costs.

Unfortunately, this is a common reality of many enterprises.

The lack of headquarter inspection department and check personnel, the performance oriented regional branch offices and their offices have no time to take account of, or even omission, the monitoring and verification of the links before and after the promotion activities of each sales channel are basically impossible to resist the counterfeiting and counterattack of dealers.

What's more, some regional market salesmen are working hand in glove with some dealers. They can work together to make sure that you can get the credentials for the cost cancellation, because they may engrave more than a hundred of the downstream cooperation channels.

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