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Why Does Channel Promotion Cost Become "Mad Dog"?

2016/5/1 15:01:00 36

Channel PromotionCostMarketing Strategy

Promotion has 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.

And for the vast majority of

Distributor

For example, they are basically in a state of equal waiting for promotion of products.

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.

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 settled through the way of money rather than settlement.

Promotion expenses

Converted into promotional products or non promotional varieties of conventional products, new products, etc., with products to cash.

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.

For enterprises that channel marketing normalization, the verification of channel sales expenses is a very tedious enterprise, which is particularly evident in those enterprises with more product categories, more SKU and relatively complicated channel structure.

Because it is necessary for us to find out whether the sales promotion cost of a certain category of products is to be sold to the distributor truthfully, we need to find out the number of products that have been put into the dealer period, whether they have been used, how much they have been used, and where they are used, and need to provide corresponding photos, bills and other evidence.

To understand these facts, we need not only to spend a lot of time and manpower.

energy

It also needs terminal, two batch of filing and filing registration, and also needs to figure out the basic work and data of the distributor's goods flow and so on. If the enterprise lacks these, the so-called cancellation will eventually become a fog and a mess.

Affected by these circumstances, it inevitably leads to the fact that enterprises are hard to write off, dealers are annoyed, and timely verification is unavoidable. Dealers are even more annoyed, and the sales staff in various districts are also very angry.

In the face of these "tortures", Li Zhengquan saw that some enterprises simply simply cancel the cost of channel promotion products and become a coupon.

For example, a single item is 5% of the promotion cost, and now the dealer will directly purchase 95% of the purchase price, and the enterprise will also open the vote by 5% off.

In this way, dealers need not worry about the time of checking and selling off the sales. Salesmen are not annoyed by dealers' pursuit of their butts, and the sales and administrative personnel and financial personnel are less workload. Therefore, enterprises have reduced taxes and fees.

But in fact, this is equivalent to the right of the referee to the kicker, the dealer! There is a lot of problems that need to be verified and controlled before, and the use of promotional expenses will eventually become more disorder and failure.


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