How to execute promotions effectively? There is abundant discussion on this topic in marketing theory books and forums, but most focus on theory and creative planning, with little attention to detailed execution. Even when mentioned, it is often superficial and offers little practical guidance. Promotion is a highly practical task, especially emphasizing the meticulous execution of various details. To help marketing colleagues clearly understand what to prepare and do in a promotion, this article attempts to present a reference for promotion execution from the perspective of a mobile phone store manager, combined with excellent industry research.
Three Key Execution Points of Promotion Although this article emphasizes practical introduction, some important theoretical introductions cannot be omitted. Before we begin, let's review the definition of promotion: Promotion literally means "sales promotion," which is to communicate and persuade through information dissemination and activities, directly or indirectly encouraging individuals, organizations, or groups to accept a certain product or service. From a retail perspective, three keywords in this definition deserve attention: 1. "Information dissemination," mainly referring to promotional advertising and atmosphere creation; 2. "Communication," mainly referring to on-site promotional introductions and salesperson reception; 3. "Persuasion," mainly referring to achieving the final transaction through various efforts such as buy-one-get-one, price reductions, and sales techniques. These three keywords constitute the main work items in retail promotion execution and must be prioritized in promotion preparation and execution.
Six Main Purposes of Promotion Store promotions differ significantly from single-brand manufacturer promotions in their starting points: manufacturer activities emphasize brand and sales volume improvement, while store promotions must not only highlight individual brands and categories but also focus on the overall store, achieving comprehensive improvement in both quantity and quality. From the store's perspective, the main purposes of promotions are as follows:
Encourage customers to buy in large quantities, rapidly increasing overall store sales.
Bring freshness to customers, deepening their impression of a certain product brand.
Attract potential customers to try purchasing, making them familiar with new products and promoting their sales.
Enhance the store's brand image.
Clear out old or overstocked products, reducing high inventory.
Attract competitors' customers to change their existing consumption habits, snatching customers and hitting competitors.
Three Principles of Promotion Execution
Innovation First Innovation is the "secret weapon" for promotions to achieve breakthroughs and an effective way to block other brands' follow-ups and interceptions. If the activity format lacks innovation and simply relies on special prices or buy-one-get-one, such activities cannot achieve good results. In today's increasingly homogenized promotional methods, innovation requires full differentiation, considering differentiation in promotion plan design, advertising, etc.
Small Amounts, Multiple Times Since consumers' desires are endless and they tend to want things that are harder to get, promotions should follow the principle of "small amounts, multiple times." Each promotion should not be too aggressive (to reduce expectations and avoid affecting regular sales), and the product range should not be too wide (the harder to get, the more desired). Set some artificial thresholds to make customers feel they got a bargain.
Win in Details Consumers' final purchase decision is called the "thrilling leap" in economics, meaning consumers are delicate and often give up buying due to small issues that are usually insignificant, and they are very vigilant. In such cases, paying attention to execution details is particularly important. Throughout the promotion, from poster design and posting to the refinement of the promotion process and on-site execution, details must be considered.
Three Common Classifications of Promotion Although we have promotion purposes, we often fall into the thinking: When should I do promotions? When will promotions be more effective? The following classifications and forms may help you find more ideas in promotion planning:
Major Holiday Promotions Including but not limited to: New Year's Day, Spring Festival, Lantern Festival, Women's Day, Dragon Boat Festival, Army Day, Mid-Autumn Festival, National Day, etc.
Thematic Promotions Specialized thematic promotions organized for a certain category of products or events, including but not limited to: (1) Celebration promotions for important store anniversaries, such as company anniversary promotions. (2) New store opening promotions. (3) Manufacturer-store joint promotions: activities with one or a category of brand manufacturers: brand promotion week (month), brand special offer week (month), etc. (4) General thematic holiday promotions: Valentine's Day, 3.15, 517, Father's Day, Mother's Day. (5) Store-planned thematic holiday promotions: Mobile Phone Festival, Smartphone Festival, Music Phone Festival.
Regular Promotions In addition to the above two categories, small-scale promotions to liven up the atmosphere, for a specific purpose, or in response to market changes are called regular promotions, mainly including: (1) Small promotions on regular weekends to boost popularity and sales. (2) Responsive promotions to counter competitors' openings or promotional activities. (3) Special promotions for clearing old stock. (4) Store anniversary promotions. (5) New product launch promotions. (6) Leveraging major local events or holidays. For example, Hainan holds a large government-organized Hainan Happy Festival at the end of each year, and Hainan's Wangzhe Tianchuang Mobile Phone Chain also holds a "Wangzhe Tianchuang Mobile Phone Happy Festival" during the same period, which has received good market response.
The "Six-Link Chain" Process of Promotion Execution How exactly should promotions be conducted? What are the steps and processes for a complete promotion activity? For many marketing novices, thinking about promotion activities seems simple, but once they start operating, they don't know where to begin or what preparations to make. The following "six-link chain" will help you easily face promotions: (1) Planning with Highlights
Clarify the time, location, target audience, and activity format.
The activity theme must be prominent, eye-catching, and legitimate. For terminal promotions, having an eye-catching activity title can make half the activity successful. For example, in a promotion, a mobile phone chain store used the title: "**** Anniversary, Send Gifts, Beauties Send the Earth," where "send beauties" meant beauty calendars given by female employees, and "send the earth" meant giving away a globe, but the title was very attractive, and many consumers were curious to learn about the activity. Another example: during a slow season, a mobile phone store planned a promotion: "Heavy Rewards for Mobile Old Users, 0 Yuan to Buy a Phone, 1 Yuan to Exchange Gifts," which was not only concise and direct with strong appeal but also firmly captured many mobile users. As the saying goes: "If the name is not correct, words will not be smooth." Promotions also require a legitimate reason. Giving customers discounts or gifts without reason not only fails to increase sales but may also drive away potential buyers. Therefore, when designing the promotion theme, always inform the public "Why am I doing this promotion?" such as anniversary celebrations, to make consumers believe in the authenticity of the activity.
Clarify the benefits. (Why should customers buy? What are the benefits?)
Consider all activity details thoroughly.
Special emphasis: (1) Different products and customer groups require different themes and atmospheres. For example, Valentine's Day promotions should create a romantic and sweet atmosphere with pink tones and elegant, graceful themes; (2) Promotions based on price wars and gift PK should be straightforward and simple, easy for customers to understand; (3) A good activity theme should be attractive to on-site customers and have communication value. (2) Preparation Must Be Thorough
Personnel division: Establish a "standing committee" for the promotion activity and clearly divide responsibilities during the preparation period.
Weather confirmation: Check the weather forecast for the activity day through the meteorological bureau, the internet, or other channels.
On-site reconnaissance: Determine the best location and optimal outdoor activity time, preferably where customers are most likely to notice and stop.
Venue confirmation: Confirm the venue with the city management or property management company one week or even one month in advance.
Temporary promoter recruitment: Strictly screen promoters; quality over quantity to avoid mixed quality. Good promoters can be retained for future activities.
Temporary promoter training: Promoters and temporary staff must undergo training on the promotion content before starting work.
Incentive system: Communicate the company's sales policies and establish a scientific and feasible on-site incentive system to boost employee morale.
Material preparation: Promotional materials such as spray paintings, posters, leaflets; on-site materials such as banners, tents, promotion tables, and gift distribution registration forms.
Gift application: Based on current gift inventory and promotion needs, promptly submit purchase requests to the administrative department and follow up. (3) Preheating Must Be Sufficient A successful promotion relies 30% on the on-site execution and 70% on preheating. Preheating should center on the activity site, with a radius of a few kilometers, targeting areas with concentrated target audiences. The optimal preheating time is usually 3-5 days. Too early and it's forgotten; too late and it's ineffective. (4) Execution Is the Most Critical
Set up the venue in advance.
Personnel division: Activity commander, publicity officer, sales personnel, and product and gift custodian.
Timely and fully communicate sales information to everyone on site.
Boost morale through slogans, brief meetings, etc.
Promptly investigate and resolve any interference from competitors on site.
Record sales gifts, prizes, and bonuses in accounts promptly. (5) Inspection Cannot Be Omitted No matter how thorough the preparation, there will be oversights and deficiencies. Therefore, during execution, the inspection step must not be omitted. Try to solve problems on the spot; if not possible, strive to avoid them in the next activity. Large-scale activities cannot afford any carelessness, otherwise they may not only deviate but also have adverse social impacts and negative effects. (6) Summary Must Be Timely
Summarize every half day to boost morale promptly.
After the activity, hold a summary meeting with all employees on site. Praise outstanding performers, affirm achievements, and identify shortcomings.
The next day, store managers gather to summarize, fully reviewing the planning, preparation, and execution, writing down experiences for other markets to learn from and listing shortcomings to avoid recurrence.
How to Do Promotion Planning Well Many practical marketers are self-taught and have not received formal marketing theory training. Although their promotion ideas and final execution results are often good, most fear one thing: writing promotion plans. Due to unfamiliarity with the format and content structure of promotion plans, their plans are often brief and incomplete. If something is overlooked, it is supplemented during operation, causing delays in actual work. (1) The 5W+2H of Promotion Planning Promotion motivation (WHY) - Why do this activity? What is the purpose? Promotion timing (WHEN) - When to do it? What is the best timing? Activity target (WHO) - What type of customers is the activity aimed at? Promotion products (WHAT) - Which models should be the focus? Activity location (WHERE) - In which stores and venues will this activity be operated? Activity format (HOW) - How to conduct the promotion? Where are the highlights? (2) How to Write a Promotion Plan? Basic structure of a promotion plan The content structure is not to limit our thinking but to help us clarify ideas and identify gaps. Therefore, before planning, it is important to understand the main content structure of a promotion plan. (1) Market background - Before promoting, thoroughly understand the surrounding market and competitors, analyze strengths and weaknesses, and choose the most effective way to hit competitors and highlight our advantages. (2) Activity purpose (3) Activity theme (4) Activity time (5) Activity location (6) Promotion content (7) Personnel division and preparation schedule (8) Material plan (9) Advertising and publicity (10) Emergency measures (11) Cost budget (3) How to Plan a Good Activity?
"No investigation, no right to speak"! Know yourself and know your enemy, and you will never be defeated. Therefore, before planning a promotion, conduct a comprehensive "carpet sweep" of the area to understand competitors and market trends, then formulate a specific plan based on the information gathered. Specific methods include: (1) Use a camera to take clear photos of all stores in the core business district, especially competitors' information, which is crucial. Analyze carefully after returning; (2) Select core staff or mobilize friends and relatives to conduct a comprehensive survey of competing stores. Design a form in advance with main survey items such as main models, prices, promotions, store conditions, marketing strategies, etc.; (3) Organize and analyze the first-hand survey data, carefully study the strengths and weaknesses of both sides, and formulate promotional strategies that can hit competitors and attract customers.
Good activity planning must be good at leveraging trends. "Leveraging trends" refers to the timing and entry point of planning, which is to fully combine local actual conditions, skillfully use festivals, local cultural landscapes, social topics, current events, media focus, government professional authority, emergencies, celebrities, cultural activities, etc., to integrate your enterprise or product cleverly, easily win people's attention and goodwill, and enhance visibility and sales. Winning battles requires "timing, location, and harmony"; promotion planning to cause a sensation also requires "timing, location, and harmony."
Good activity planning must fully showcase the advantages of the activity. The purpose of activity planning is to increase product visibility and reputation, thereby immediately or later boosting product sales. Therefore, a good activity plan should fully demonstrate the unique features of the product, not just give gifts or hold lucky draws to let consumers get a bargain.
Good activity planning must fully leverage your own advantages, making competitors envious. "Every man has his faults," good activity planning should fully utilize your resource advantages. The purpose is, first, to operate your activity smoothly and perfectly; second, to prevent competitors from following suit. If everyone follows a good method, it will be ruined. If only you can do it and others cannot, then the advantage you build through this activity is hard for others to replicate.
Good activity planning must enhance brand image. The purpose of activity planning is publicity, same as other promotional methods. Therefore, activity planning must also be subordinate to the overall marketing system, obey the integrated marketing communication strategy, and take enhancing brand image as the fundamental principle, implementing David Ogilvy's famous saying: "Every advertisement is an addition to the brand."
Good planning should be novel, either not done before or similar activities existed but had little impact.
What Budgets Are There for Store Promotions? A complete promotion plan must include a detailed activity cost budget. Through the enumeration of items and cost details in this budget, we can further clarify the key matters of the activity, better see the input-output ratio, determine whether the promotion is worth it, and identify areas to reduce or increase expenses. So, what are the main budget items for store promotions? (1) Gift costs (2) Prize/bonus costs (including lottery costs and employee incentive costs) (3) Advertising and publicity costs A. Advertising production (release) fees - (bus stop signs, outdoor advertising production fees, TV station subtitle ads, etc.) B. Advertising rental fees - floats, arches, etc. C. DM leaflet printing costs (4) Store material layout and production costs (5) Activity expenses: food and drink costs, medicine, employee sales subsidies, etc. (6) Temporary promoter costs (7) External liaison costs: city management fees, property fees, etc.
Main Preparation Items for Store Promotions
Determine the organizational structure of the preparation team All work must be assigned to specific people and time points, with a detailed and complete schedule: Who is the leader and overall responsible for promotion planning and organization? Who is in charge of implementation? Who is in charge of logistics? Who is responsible for following up on specific projects?
Main work items (1) Market research (for homogeneous products, main competitors' prices and promotional forms) (2) Discussion on promotion methods and themes (3) Plan writing and policy formulation (4) Plan approval follow-up (5) Resource acquisition (from operators and manufacturers) (6) External liaison and approval (city management, property) (7) Product stocking (8) Advertising contact and arrangement (9) Material planning and requirement reporting (10) Gift requirement reporting (11) Material production follow-up (12) Sales props preparation and inspection (megaphones, speakers, counters, tents, arches, explosion stickers, outdoor lighting, etc.) (13) Atmosphere arrangement (14) Activity promotion (training) (15) Sales division (16) Temporary promoter recruitment
Precautions for Major Holiday Promotions
Prepare emergency plans Major holidays have obvious effects and strong market appeal, carrying heavy sales tasks, so there is no room for error. During major holidays, some stores often face internal planning and organization issues such as best-selling models out of stock and insufficient promoters, but these are not the most serious problems. The most serious are external issues like city management disrupting outdoor activities, property not supporting, store power outages, troublemakers, and low customer traffic. For these external issues, thorough consideration and emergency plans must be made before the activity. If these situations occur, what are our second and third response plans? Do not wait until the last minute and panic.
Pay attention to signing activity agreements (1) Determine the activity schedule If there are roadshows, float parades, etc., the schedule must be precise, ideally to the specific time point each day. Moreover, in the notes of the promotion plan, clearly explain possible delays due to unexpected events and determine the postponed time. For cooperation with advertising companies, performance companies, vehicle rental companies, etc., try to use contracts or agreements to clarify the activity time and specific arrangements to avoid complications. In short, the activity schedule must be "one is one, two is two," never ambiguous. (2) Determine the activity venue Be very clear about the activity venue, especially for promotions outside the store. Attach a relevant site approval map. Clearly specify the area, orientation, and direction of the venue, and even the height. Also, clarify the activity time and price for venue rental in the agreement. Because if special sizes and requirements for activity props are involved, it may cause difficulties in setup and construction, or pose safety hazards during the activity. (3) Prepare supporting materials for the activity For supporting materials, the store must list a clear activity material checklist, down to power strips, network cables, and each spray painting. Never just list a few major items. Otherwise, it is easy to lose things during setup and affect the activity progress. (4) Clarify the number of promotion staff For promotion personnel arrangements, if temporary promoters or manufacturer-supported temporary promoters are needed, confirm the number, working hours, and cooperation partners before the activity, and formulate work division and responsibilities for temporary promoters.
Implement personnel arrangements Due to the large scale of major holiday promotions, involving many people and items, during preparation, assign responsible persons for relevant links, each tracking and completing their own tasks, and promptly reporting progress to the store manager, ensuring every link has a responsible person and clear responsibilities. This avoids problems such as mutual blame and disputes among employees.
Maintain customer relationships Customer relationships are the lifeline of an enterprise. Maintaining customer relationships is not a one-day or two-day task but a long-term effort. During the preparation of major holiday promotions, stores must maintain customer relationships, especially with relevant departments such as city management, industry and commerce, and sanitation, according to local holiday customs, to ensure the smooth execution of the activity.
How to Make a Good Promotion Summary? Many people do not develop the habit of summarizing promptly after promotions. More people understand the purpose and significance of summaries but struggle with how to write them and what to summarize. In fact, making a good promotion summary is simple: just follow the basic outline below and organize the corresponding content. That will be a good summary.
Compare sales data before and during the promotion. What is year-on-year growth (decline)? The increase or decrease in sales during the activity compared to the same period last year. This indicator is commonly used in practice, such as the development speed calculated by comparing a certain year, quarter, or month with the same period last year. What is month-on-month growth (decline)? The increase or decrease in sales during the activity compared to a period immediately before the activity. Month-on-month can be daily, weekly, monthly, or yearly.
Compare profit data before and during the promotion.
Number of direct/indirect participants (attach on-site photos) Has the activity popularity significantly increased? How has customer traffic improved? How was the on-site activity executed? Record the activity completely with photos and text for future reference.
Report total activity costs and cost proportion.
Competitor store reactions and competitor product reactions While you are busy promoting, have surrounding competitor stores made targeted market responses? Have major competing products also adjusted prices or offered buy-one-get-one promotions? What reactions have they taken? Write all these down.
Successes and shortcomings of the activity Through the execution of this activity, whether it was a great success or left some regret, you must have deep insights and a lot to say. Write down the successful aspects, unsuccessful aspects, and the reasons for them. Note: the more complete and organized, the better!
Introduce the next promotion plan One activity's end is the beginning of the next. Use the moment when you still have a good feeling about the promotion to quickly determine the next promotion plan. How will the next activity be done? When? What good methods should be continued? What bad methods should be abandoned?
Ai Jianjun, practical marketing planner, terminal market management consultant, contributing writer for "Sales and Market" and "Business World" magazines, has served multiple large commercial retail enterprises and listed companies. Specializes in news PR, brand positioning, terminal brand building and renovation, and terminal market management. Welcome to discuss: Email: 21cnai@163.com, Sina Blog: http://blog.sina.com/malafans
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