Currently, there is a wide variety of marketing activities. Specifically, regarding how to ensure rapid product sell-through at the terminal, dealers prefer to use promotions as a marketing tool. When dealers conduct promotional activities with minimal manufacturer support or even entirely on their own, pursuing sales volume is one reason, but if the input-output ratio of the promotion is too low, making it unprofitable, it clearly fails to achieve the original intent of merchant promotions. Thus, with an operational mindset of "less input, more output," many dealers' terminal promotions exhibit distinct characteristics: small scale, low cost, single form, and high frequency.
Forms of Dealer Promotions In terms of form, dealers generally like to follow trends. When other merchants run activities that are effective, they immediately suggest to the manufacturer or simply imitate and follow. Looking at the various promotional activities currently on the market, most are quite similar. If classified by form and mode, they can be broadly divided into conventional promotion models and unconventional promotion models (i.e., thematic promotions).
Conventional promotions are a common model used by dealers, with content that never strays far from the basics: discount sales, free samples, and buy-one-get-one offers. Of course, the forms and variations can be constantly changed. How to create novelty is the highest level of conventional promotion.
The characteristics of conventional promotions are summarized as follows:
- Long-term or periodic: Conventional promotional activities generally last for a longer period. For example, when Shuanghui Ham Sausage launched a calcium-added product in Shandong, they ran a buy-one-get-one-free promotion for a full year.
- Fixed: Fixed location and fixed time are the most prominent features of conventional promotions. Some companies and dealers even call them "weekend promotions."
- Quick effect: The effect of conventional promotions is often "immediate results," with sales rising, but the long-term effect and influence are not good.
- On-site announcement: Conventional promotions generally use POP displays, display boards, posters, and staff explanations at the promotion site to announce the content, rather than through mass media.
Application scope of conventional promotions: Suitable for operators: Small and medium-sized enterprises with weak economic strength, and small and medium-sized agents and dealers. Suitable for products: New product launches or old products responding to competition from similar products. Suitable for terminals: Stores where staff are trained or have promotional staff stationed, and with high customer traffic.
Unconventional promotion models (also known as thematic promotions) are also a type of promotional activity that dealers often participate in. Such promotional activities are generally first determined by the manufacturer in terms of plan, theme, scale, and form, and then executed by the dealer or implemented independently. Unconventional promotions are not frequent, have a larger operational scale, leave a deeper impression on consumers, and can have a profound impact on long-term sales trends. Therefore, once a manufacturer presents a feasible operational plan, many dealers are willing to follow and take a chance.
Characteristics of unconventional promotions:
- Guidance: When operating unconventional promotions, the proposer of the activity plan usually provides comprehensive guidance to the dealer on plan operation, procedures, scale, media communication, etc.
- Thematic: Unconventional promotions generally aim to leave a deep impression on consumers' minds. Therefore, the operator will propose an attractive theme and slogan throughout the activity to attract more attention. For example, a manufacturer's theme activity proposed "Calcium supplementation needs 'calcium insurance'."
- Timeliness: Unconventional promotions have a certain activity period. The "expired, no longer available" timeliness is also an important feature that attracts the audience's attention.
Application scope of unconventional promotions: Suitable for operators: Large, medium, and small enterprises and agents or dealers at all levels. Suitable for operation cycle: Suitable for phased promotional activities with a certain interval, usually monthly, quarterly, semi-annually, or annually. Suitable for venues: Mainly large outdoor areas or hypermarkets, or can be laid out in the form of promotional outlets.
Misconceptions and Operational Points for Dealers in Conventional Promotions Although conventional promotions have proven effective for dealers with a "short, flat, fast" approach, in practice, there are also many examples of improper operation or inappropriate method selection that lead dealers into the vicious cycle of "sales rise with promotion, fall without it" and "chronic suicide." When conducting conventional promotions, dealers should pay attention to several misconceptions: Misconception 1: Promotions always lead to sales. If the promotion method is wrong or the promotional gimmicks are outdated, these "hard injuries" of conventional promotions still exist. Even with the best promotional staff, the effect will only be half the result with twice the effort. Misconception 2: Daily promotions are always good. Conventional promotions are most prone to "fatigue syndrome." Many dealers think that daily promotions and daily discounts will surely attract consumers, but the final reality is that promotional costs increase while sales remain lukewarm. Misconception 3: Imitation is the key. Observing effective and popular promotional methods in the market and then adopting a follow-up promotional operation is a common technique for dealers. This method has some market basis, but if it is only mechanically copied without innovation or adaptation, the result will only be following in others' footsteps, with vastly different effects.
From the above three misconceptions, it can be seen that operating conventional promotions also requires many skills and strategies. Only by using rich skills and appropriate promotional strategies can dealers make their conventional promotions "unconventional" and achieve the effect of small input and large output. Based on past market experience, the following points are summarized for sharing.
Terminal construction is the foundation of conventional promotions. Market terminals are like the base for conventional promotions. If the base is not solid, promotions will certainly not be worth the cost. Before conducting conventional promotions, dealers need to do three things well. Hard terminal construction: Package all product selling points well to form a unified color visual. A product that did this well and was once popular is Keyan Eye Mask, a model of hard terminal construction. Soft terminal construction: Training terminal staff and maintaining customer relationships are often aspects that dealers easily overlook. Dealers need to establish a relatively complete terminal training system with the support of the manufacturer to improve the sales capability of the frontline team. Fixed-point construction for sales and promotional staff: Making salespeople or promotional staff fixed-point is also a way to propose management innovation for dealers. In the marketing system of the company I served, the "stronghold management system" was promoted, becoming a highlight of the "build a nest to attract phoenixes" strategy in market management: market sales increased, promotional staff income rose, and excellent promotional staff quickly gathered together.
Conventional promotions need to combine points and areas. When conducting conventional promotions, dealers first need to consider suitable promotion points. If everyone promotes and every store has promotions, it will only disperse energy, material resources, and financial resources. Dealers should only select suitable promotion points from effective terminals. Never unilaterally think that if a store's sales are not increasing or there are no sales, then promotions should be conducted. "Dead water cannot raise live fish" is also a market lesson. After having suitable promotion points, through a detailed conventional promotion schedule, dealers can analyze information such as promotion arrangements and execution, effect evaluation, sales statistics, and experience exchange for all promotion points. This allows dealers to have a general understanding of the entire market level and make timely promotional adjustments and overall arrangements.
Grasp the timing and cycle. Some dealers, when launching new products, start with large-scale conventional promotions and quickly introduce buy-more-get-more discount measures. A brief analysis shows that the results will be quite different from the dealer's original intention. The dealer's idea is to use buy-more-get-more to quickly get consumers to accept the new product and achieve a breakthrough in sales. But in reality, consumers not only remain indifferent to such activities and do not try to buy, but they will also question the price and quality of the newly launched product. This is clearly a case where the dealer did not consider the timing of the promotion when conducting conventional promotions. Choosing the right timing, promotional reason, and promotional cycle are the three key points that dealers should grasp when formulating conventional promotion strategies.
Issues Dealers Should Pay Attention to When Participating in Unconventional Promotions From practical operation, only a very small number of dealers can independently operate unconventional promotional activities, while the vast majority complete this market activity with manufacturer support or under the manufacturer's assistance and guidance. Since unconventional promotions (thematic promotions) require a relatively large investment of financial, human, and material resources in a short period, the operational risk is not only on the manufacturer's side; dealers also bear many risks in future market development, team management, capital investment, after-sales service, etc. Therefore, when dealers receive notice of an unconventional promotion or a promotional plan from the manufacturer, they should not be overjoyed. They must rationally analyze the following points.
Feasibility and practical significance of the unconventional promotion plan. When executing unconventional promotional activities, there is usually a relatively complete and detailed operational plan. However, since such plans are often designed with universality in mind, they may lack consideration of regional differences and market characteristics. When dealers receive the promotional plan, they should not simply apply it. First, they need to recognize that there will be differences when operating this plan in their region, and they should anticipate where these differences may occur. Second, dealers should also focus on the practical significance of this unconventional promotion. Is it to generate more sales, or is it a "image project" to enhance the brand? Is it to get more new consumers to try, or to encourage existing consumers to "stock up" more?
Resources matching the unconventional promotion. The procedures for conducting unconventional promotions are relatively more complex than conventional ones. Dealers also need to comprehensively consider costs, venue selection negotiations, promotional teams, after-sales service, media interaction, and promotional material support. Promotional costs: Spend according to your budget. Dealers should not overestimate the later benefits of the promotion and neglect the initial promotional expenses. Venue selection: A suitable venue greatly affects the effectiveness of unconventional promotions. Dealers should complete this work in the early stages of the promotion. Promotional team: Unconventional promotions require higher quality promotional staff. Do not have the mindset of "if there aren't enough people, make do temporarily." There should be special thematic training for unconventional promotional activities. After-sales service: Many unconventional promotions come with after-sales service issues. Dealers must have a certain psychological preparation and response plan. Media interaction: Creating news highlights and allowing the promotional activity to interact with the media is a huge potential of an excellent promotional plan. Promotional material support: Whether the required promotional items and related promotional materials are complete is also a key point that dealers need to pay attention to.
Research on consumer psychology. Before conducting unconventional promotions, dealers need to understand what consumers are thinking recently, what purchasing preferences they show, and what consumption and promotional information they accept. Based on what consumers think, proposing promotional themes that suit their tastes can be more touching. Based on purchasing preferences, formulating promotional offers with additional benefits that meet consumer preferences and likes can win long-term consumer trust. Based on current popular or similar promotional information, innovating in promotional form and theme content can form a new communication force.
Possible competitive responses and solutions. When conducting unconventional promotions, dealers should also observe market dynamics and competitor activities at all times, and launch countermeasures based on competitors' promotional interceptions.
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