Advantages and Disadvantages of Different Product Promotion Strategies

Product promotion strategy refers to the strategy of promoting the rapid transformation of products from manufacturers to consumers in order to promote product sales, consumer behavior, and consumption habits.

In the actual market terminal operations, the forms of product promotion are various, and the promotion strategies adopted by different products are not the same, but they never change. Here, the author combines his own work experience to classify product promotion categories and analyze their advantages and disadvantages one by one, with a view to discuss with everyone.

In the actual market operation, the product promotion strategy mainly has the following fifteen kinds of strategies:

First, the discount strategy

The discount strategy is the most common and effective promotion strategy adopted in product promotion. The so-called discount price refers to the fact that manufacturers sell their products in a way that favors consumers by reducing the selling price of products. This kind of promotion strategy is generally applicable to products that have just been listed and urgently need to open the market to sell or win the attention and attention of consumers.

The discount strategy mainly includes direct discount, additional gift and package discount.

The advantage of adopting a discount strategy is very obvious. It is quick to take effect. It can quickly boost sales in the short term, increase consumers' purchases, and has the most impact and tempting power for consumers. Dealers are very interested in it. Very happy to. At the same time, adopting a discount strategy can respond quickly, leaving competitors unprepared and can put themselves in a more active competitive position.

However, the disadvantages of adopting a discount strategy are also very obvious. Mainly manifested in: can not solve the basic marketing dilemma, it may only bring short-term sales promotion, can not solve the deep problems raised by the market; at the same time, the decline in product prices will lead to a decline in corporate profits, and, once the product declines, want It is very unlikely that there will be no discounts before. The discount strategy will also deter consumer loyalty to the brand; triggering a counterattack by a competitor will easily lead to price competition, resulting in a two-lost outcome, which will be detrimental to the long-term development of companies and industries.

Second, attached gifts strategy

The complimentary gift strategy means that consumers can get a non-product gift at the same time they purchase the product. This promotion strategy can be applied to different conditions of the product. The main methods are three kinds of packaging gifts, packaging gifts and packaging gifts.

The complimentary gifts strategy can create product differentiation and enhance the appeal to consumers; can segment the market, increase the probability of consumers trying to buy; prompt consumers to increase the frequency of product use, and accelerate the repeated purchase of products; promote The enthusiasm of distributors to promote products enables rapid sales of products.

However, the strategy of taking complimentary gifts sometimes has the opposite effect. Poor gifts will hurt brands and sales. Once there was a mobile phone manufacturer, in order to promote product sales, to adopt promotional strategies for buying mobile phones to donate electronic radios, but the poor quality of the presented radios not only failed to achieve the effect of sales promotion, but also faltered. The quality of the radios given by the manufacturers because of the manufacturers was too poor. , not only did not pay attention to such promotions, but also requested to return the purchase of mobile phones and money, resulting in a very bad influence among consumers, manufacturers finally had to stop this promotion in the failure.

Third, the refund strategy

The refund policy refers to refunding a certain amount of money after a consumer purchases a certain amount of goods. This promotion strategy applies to new brands that have entered the market or products that already have certain brands.

The refund strategy includes five kinds of refund strategies: purchase of a single product, purchase of rebates for the same product, rebates for purchase of multiple products from the same manufacturer, combined rebates, and upgrade discounts. The so-called upgrade refund policy means that the more you buy, the cheaper the converted price. If you buy a brand of cosmetics, buy 3 sets to return 10 yuan, buy 5 sets to return 20 yuan. This kind of promotion and refund promotion strategy is the most commonly used promotion strategy of manufacturers.

The advantages of adopting the fee repayment strategy are less impact on the brand image, and will not lead to vicious competition among peers. It can stimulate consumers to buy again and repeat purchases, cultivate consumer loyalty to the brand, and achieve rapid sales of goods.

However, the drawback of adopting the fee-reduction strategy is that manufacturers need to sacrifice their own profits in exchange for rapid product digestion; at the same time, such promotion strategies can not be too strong, so that the stimulation of potential consumers is not enough, and the enthusiasm of consumers to participate is not very strong. There is a kind of high and low feeling in high and poor performance.

IV. Voucher Discount Strategy

The voucher discount strategy refers to the discount that the merchant adopts in the promotion process and allows the consumer to enjoy the purchase according to some approved voucher. This promotion strategy is often manifested in joint promotions. The two manufacturers complement each other's strengths and maximize the sales of their respective products.

The advantage of adopting a voucher discount strategy is that it can increase consumer loyalty and attract fixed consumer groups; it can carry out targeted promotional activities and it has a better effect on consumers with consumer demand.

However, the main disadvantage of this promotion strategy is that the exchange process is more difficult to control. In the process of implementation, if the implementation is not in place, it may cause some damage to the brand. In addition, this promotion strategy is not suitable for new brands, because the new brand is not attractive to consumers, consumers are not very trust, and consumers' participation is relatively low.

V. Set point exchange strategy

Set-point change strategy refers to the promotion strategy of consumers collecting product purchase vouchers, reaching the number of business activities, and redeeming different rewards at locations designated by the business. This kind of promotion strategy is applicable to mature products with high brand awareness and is a product that consumes frequently and consumes a large amount. Such fast-moving consumer goods, Master Kong, Coca Cola and other well-known brands often take this promotion strategy.

There are four main ways to adopt point-for-item exchange: including point-for-items without time restrictions, time-limited point-for-items exchange, exchange for other items, and membership system feedback.

The advantages of the point-to-point swapping strategy are very obvious. It can stimulate consumers to establish multiple purchase behaviors and cultivate brand loyalty. In addition, they can create product differences in activities and improve the competitiveness of products. At the same time, this type of promotion strategy has become a sales promotion strategy adopted by a large number of manufacturers due to its low operating costs.

The disadvantages of the point-to-point swapping strategy are mainly reflected in the low enthusiasm of the middle distributors, the generally long duration of the activity time, the lack of patience of the consumers, and the poor attraction to new customers.