Are you going to buy?

Buy this thing, now very hot. Domestic group buying site is said to have been to the "http://www.aliyun.com/zixun/aggregation/35416.html" > The extent of the Thousand-Regiment war. From a marketer's point of view, this very fashionable thing needs to be noted: Should it be included in the marketing tactics of the organization?

There's a weekly magazine, the latest issue, the editor on the title page is not without surprise to write: In a group purchase website xx online sales, one hours, 90; first day, 4,288, the third day group purchase ended, sold a total of 7311 sets of magazines--more than 90% or the first time subscription.

An increase of 7,311 subscribers is indeed a good result. But what is the price? 41 percent. The magazine sacrificed 2.05 million of its revenue to the 7,311 subscribers, which did not include the cost of implementing the group buying activities that the magazine might be given (41 percent of the price or the amount of a domestic helper). Is it worth the sacrifice of 2 million?

It's hard to say. Because for magazines, the damage can be made up by advertising. In other words, selling a subscription to a magazine is not the end of the product's liquidation, but rather a start. The increased number of subscribers can increase the likelihood of advertising sales. Here's 90% is the first subscription becomes very important because this is the net increase in circulation. It is too early to assert that 2 million of the losses caused by 7,311 of subscribers with low prices can be subsidized by selling 2 million more ads.

But this small marketing case, indeed, can find something similar to the rules of operation. In other words, when should you be involved in group buying?

The 1th is to buy this kind of sales behavior, for the organization, is only the beginning of sales. For example, a restaurant can use a very low or even free price to attract diners, but in general, diners always have to order a few more dishes, this can be sold again the consumption behavior, is worth to buy one.

Another example is cosmetic sales. It is possible to lure potential consumers to the counter with very cheap prices and to sell more cosmetics by trained ground sales staff. For example, the purchase of items is only a series of one, the ground sales staff have a great opportunity to complete the entire product sales.

It can be said that group purchase sales is the end of a sale, the product is not suitable for group buying.

The 2nd is to buy more conducive to new products, because the new product will not occur sales transfer. A public sense are all in the consumption of products, doing group buying is meaningless. One exception, however, is inventory processing. There is no fatal quality problem, through group buying to carry out sale, is a rapid withdrawal of funds to clear inventory of effective means.

The 3rd is that there is no brand appeal products, easy to do not try group buying. Unknown new products, through group buying, the consumer awareness of the market share is very easy to misunderstand the price of the product: this should be a 20 percent 30 percent low price. Moreover, there is no brand appeal to support the sale of group buying, it is basically difficult to establish loyalty to consumers. In some ways, group buying is an act of pulling sales, not a branding case.

Since it is a marketing strategy to promote sales, then, after the group purchase, can be measured. For example, cosmetic as an example, after a group purchase, the amount of ground incremental income has reached a number, whether this incremental income can fill the product after the loss of the resulting losses can also be calculated, in addition, do not forget the possible input of the direct sales staff training. If it is a positive number that earns more than the loss, you can try again. Instead, stop immediately, or try to reduce the discount rate.

Do not believe what through this group purchase, you can expand your brand awareness, and then the future consumers will again use a higher price to consume your products. This discourse may be tenable, but it is rather difficult to judge and measure. From the current group buying market, group buying is basically a group of groups to retreat to a group of groups, they are rushing on a variety of site purchase, with the cheapest price to buy products or services, as to whether they will repeat consumption, rather novices things.

However, this does not mean that you can reduce the quality of your product or service. To know that satisfaction may not be a word of mouth to help you, but not satisfied with the circumstances, ten, these Internet Fashion application users, will not give up any chance to criticize you.

So, the beginning of this article is to use such a word to describe group buying: a marketing strategy. This is just a one-time increase in sales of measurable tactical action, do not think too complex, too good.

This article is published in the "New Marketing" 10th column, published in the title "Group Purchase, just a marketing strategy."

The article about the magazine's example is actually more complex, there are two dimensions, due to the layout of the reasons, I omitted:

The first dimension, about 41 percent exactly how much revenue is discounted. Magazines are not likely to be issued at a price of 100%-for example, the magazine itself will sell directly to subscribers at 80 percent 90 percent. If the magazine through the channel to sell, but also to channel fees, even through the post office to issue, but also to the post office fees. Therefore, the 2 million loss of revenue mentioned in this paper is only an ideal value, not the real level.

What is the cost of each magazine in the second dimension? One thing is to be sure, the unit cost curve is down. The average cost of the top 1000 magazines is obviously different from the last 1000.

The 2 million mentioned in the article is just for the convenience of the wording. Real analysis, but also need to be more verbose, I do not bother to unfold.