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Nowadays, promotions have been regarded by many merchants and manufacturers as a "panacea" for all ills. Use promotions for new product launches; use promotions for old product phase-outs; use promotions to open new markets; use promotions to expand sales; even use promotions to enhance brand awareness. For a time, you could see them everywhere.

In most people's eyes, promotions can maximize the stimulation of terminal sales growth and are thus upheld as a golden rule. As long as the "magic weapons" of price cuts, discounts, and buy-one-get-one-free are drawn, there will always be gains. However, do promotional activities necessarily bring about product bestsellers? Not necessarily. In general, three different outcomes can occur: 1. As the enterprise expects, stimulating consumer purchases and achieving strong sales; 2. The market remains lukewarm, sales stay flat or slightly increase, and revenue balances expenses; 3. Consumers are repelled, sales do not rise, costs pile up, and the enterprise operates at a loss. Why does this happen? This brings us to the essence of promotion.

Promotion, in its original sense, means "to promote sales," not "to dominate sales." Therefore, in sales activities, promotion does not play a leading role but a supporting one. Although its effect can sometimes be significant, its results are constrained by various factors.

Just as a sword is double-edged, if a promotion is poorly executed, it can harm the company itself. For example, if you fail to grasp the promotional scale and do not control costs within an affordable range, the more you promote, the greater the deficit. Especially in today's increasingly mature buyer's market, consumers are accustomed to promotions. They observe and compare, considering whether the promotional category is worth buying and suitable. When they see signs like "rock-bottom prices" or "desperate clearance," they no longer act impulsively. They turn a deaf ear to salespeople's frantic exhortations of "seize the opportunity; it won't come again," and this also affects your brand. At the same time, to attract consumers and get them to spend, you may be forced to increase promotional intensity, which can easily lead to losses.

Four Essentials for Successful Promotions

So, how can promotions succeed? Generally, the following four conditions must be met.

1. Have products (or services) that are suitable for the market.

Selling combs to monks is a story of successful marketing. Whether it actually happened is beside the point; according to the laws of promotion, this proposition is wrong from the start. You might sell a few combs with your silver tongue, but from the purpose of promotion, you can never fully accomplish this task. "Suitable for the market" here means that your promotional products must first align with local people's lifestyles; second, they must match consumers' consumption habits. Promoting gold and diamonds to ordinary migrant workers, or cheap jewelry to the wealthy, will predictably fail. Therefore, do not promote products that would repel consumers. The purpose of promotion is to sell products better. If your products are unwanted even at low prices, then you will certainly fail—monks don't need combs, migrant workers can't afford expensive jewelry, and the wealthy won't wear cheap trinkets that lower their status.

Similarly, services are a form of product, and their promotions must follow the same requirements. When China Mobile discovered that domestic colleges and universities were a huge undeveloped market, it did not simply transplant its flagship products—Global Call and Easy Own—into campuses. Instead, based on students' actual needs and requirements (mainly using phones for text messaging), it creatively developed the "M-Zone" product, which focused on SMS services. This move successfully entered campuses, won favor among students, and achieved success. Today, M-Zone has become one of China Mobile's three major products.

2. Choose the right timing for promotions.

There is a saying: everything should be done in accordance with the times and trends. Choosing a good promotional timing is a crucial condition for success. In the scorching summer, what promotional products do we see the most? From large items like air conditioners to small ones like cola, these products are most active at this time. Have you seen anyone promoting electric heaters? If you did, you'd probably think, "What a fool, promoting heaters in summer." So, going against the season might have a chance of success, but there is a 99.9% probability of failure. This is about grasping the macro timing.

Everyone understands the impact of the macro environment on promotional activities. So, in a flurry of promotional activities, how can you achieve your promotional goals? Therefore, grasping the micro timing is also very important. It can help you stand out like a red flower in a sea of green. For example, promote home furnishings and appliances when new residential buildings are launched; promote mosquito repellent to evening strollers as summer nights fall, and so on.

3. Have good promotional methods.

Good plans and methods are the guarantee of promotional success. Promotion is not just about discounts, price cuts, or buy-one-get-one-free; its specific operations need to be implemented based on actual circumstances. Because many times, consumers will not be swayed by these measures alone. What you need to do is attract them with appropriate methods. In some places, consumers love to bargain. Your price is already the lowest, and any further reduction would mean a loss, but consumers are not satisfied. What to do? The method is simple, and many may have used it: raise the original price a bit, and correspondingly raise the promotional price, giving you room to handle their haggling.

Planning is very important. You must first clarify whether the promotion aims to sell products or promote the brand. Different goals require different methods. The specific methods will be elaborated in another article.

4. Grasp the right degree.

Everyone knows the card game Blackjack. If your hand exceeds 21 points, even if the opponent has only 1 point, you lose. "Going beyond the limit is as bad as falling short." This is the same principle. In promotional activities, we must also grasp this "degree." If you exceed it, no matter how well you do, it will be a failure. First, grasp the break-even point and calculate the income and expenditure of the activity. If your promotional price is already below cost, then the more you promote, the more you lose.

Second, determine the goal achievement point of the promotion. Promotion is not a long-term process. If you treat promotion as a long-term continuous effort, then when consumers become fatigued, your continued promotional activities lose their meaning. Moreover, they might think, "This manufacturer keeps lowering prices; maybe there's something wrong." This can negatively affect your brand reputation. At that point, you should decisively stop.

Three Taboos in Promotional Activities

Promotions also have taboos. Violating them may adversely affect the promotional results.

1. Avoid changing strategies frequently.

A promotional activity is serious. Before implementation, consider all aspects thoroughly. Once the strategy is set, do not modify it easily, because this gives consumers a hint that they should not easily trust you. Especially when your prices decrease every day, what do you think consumers who bought your products earlier will think? They will feel they were taken advantage of, leading to distrust. At the same time, consumers who are paying attention to your activity will typically estimate, "If I come back in a few days, it will be even cheaper." The effectiveness of the activity will definitely be greatly reduced.

2. Avoid extending the time indefinitely.

In the market, you often see stores posting signs like "Demolition sale! Last 3 days! Rock-bottom prices!" But in reality, the sign may have been up for ten or twenty days, and the "last three days" still haven't ended. Consumers have become accustomed to it and pass by as if they don't see it. The store remains deserted. If you say a few days, stick to it. Use countdown reminders to create a sense of urgency, making consumers feel that if they miss this chance, it won't come again, thereby attracting them.

3. Avoid defective or substandard products.

If you think that this promotional activity is just to clear old products or digest inventory, and that product quality doesn't matter, so you put out refurbished units, assembled units, etc., thinking consumers won't notice, you are wrong. Because products represent your brand image. Whether old or new, they all carry your LOGO and brand imprint. In consumers' minds, the product and the brand are equated. When they buy a defective product from you, their feelings are the same as when you buy a substandard product: "I'll never buy this brand again." This shows how much damage these substandard promotional products can do to your brand.

So, when consumers no longer trust you, will your promotional activities still be effective?

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