Group buying mode is a "stimulant" rather than a market economy "catalyst"

Is it a "stimulant"? or "catalyst"?

2010 to 2011 Group purchase site, such as springing up the outbreak, its consumer-oriented theme: "Low-cost, affordable, convenient" by the vast number of consumers in pursuit.

At the same time, the merchant to buy the site has a large consumer, and slowly change their original marketing methods, try to use cost price, or even loss of price to cooperate with it, the ultimate goal is to obtain "popularity."

Group buying after more than a year of the wave, there are some businesses are gradually beginning to see the drawbacks of group buying network. The essence of group buying network is "stimulant" rather than "catalyst" of market economy, what is the difference between the two? The former is harmful while the latter is harmless.

Throughout the wave of group buying events, we are not difficult to find that some businesses and group buying network cooperation, due to the shortage of cash flow and closed down, at the same time, consumers because of the low price of attraction leading to the early consumption of a large number of products and so on.

In the face of business, group buying cooperation leads to a shortage of cash flow is only a negative effect on the surface, and the most important thing is to buy this "doping" into the original balance of the price system becomes confusing. We all know the cost of a commodity includes several items: production, production costs, dealer costs, human costs, publicity, marketing costs, and buy net is because the original cost of goods included, dealers, human costs, publicity, marketing costs, etc. to delete. So that the product only retain production and production costs, for consumers seems to have been very substantial benefits. But there are two kinds of negative questions:

1. As the saying goes: "Wool out in the sheep" early unreasonable sales costs will lead to the late price of merchants, quality reduction and other issues.

2. Originally used for publicity, marketing costs and human costs, "be group buy", will lead to the original business price system confusion, consumers once again accept reasonable prices, psychological barriers to increase, in this consumer will again put into another low-cost buy business arms, or can not retain customers. For example: Originally bought 100 pieces of products, consumers can bargain to 90 yuan to buy, and this product began to 15 yuan purchase activity after the release, and then to 100 yuan price sales, what do you think consumers will be? Because they have figured out the minimum limit of the product.

We look at the consumer early consumption caused by the problem, we should have heard of the "0 and efficiency" principle, the original consumer can be based on a certain level of consumption per month consumption, and because the impact of group buying has caused too many consumers to start early consumption, which brings the subsequent consumption ability to decline, This is also true of the 08-year financial crisis.

For those who agree group buying mode, the group buying mode is not to say a stick to kill. But this "stimulant" requires a period of time, not a long time to run. Like the Government's policy of boosting consumption over the past few years: Car purchase tax, environmental tax relief, home appliances to the countryside, the old for new and so on, as well as the 08 financial crisis of the 4 trillion policy, are like a government-led "group buying activities", however, the difference is that the government has a certain period of time. and the negative effects of such a move can be understood. After the policy consumer enterprise sales decline, recession.

And now the big wave of group buying site has not receded because too much VC will be a lot of money to hit the industry, so that this group buy "big wave" driving force is huge, and the resistance to consumption for a long time. But in the end it will be in accordance with the natural law that there is the ebb of the moment, this time will find that a lot of group buy net is actually in the "naked swimming."

Group buying, a "stimulant", is also undermining some of the balance of the market economy, where American scientists once experimented with the size of a two-circle group, filled with water between the two circles. When water forms a tidal wave at one end, the water on the other side lowers the original level, as is the case with the market economy.

The benign marketing "catalyst" brought by mobile advertisement

Looking back, let's analyze what is the purpose of these companies participating in the group buying network. "Popularity, users, publicity". In the absence of group buying nets, these businesses have chosen to promote marketing methods are just a few: "Leaflets, the internet, shop consumers", which have a promotion, low marketing cost characteristics. This kind of marketing promotion does not destroy the price system under the premise and buys the mode the marketing completely belongs to two kinds of effect. You will find that there are very few big brand enterprises, most of them are small and medium-sized businesses, enterprises to do so.

Then what kind of marketing promotion can help these small and medium-sized enterprises, businesses to provide this low-cost, regional, accurate marketing promotion way? -Mobile advertising.

Mobile advertising here mainly refers to two aspects: LBS advertising Mode and mobile phone application "embedded" advertising mode. The former is divided into public and Shanda and other companies are doing, and the latter is by Gcenter and other companies.

Let's take a look at the cost of the thousands of people needed to spread the leaflet and poster:

A A4 size of double copper, single-sided color leaflet printing cost per sheet is: 0.1 yuan, 1000 for: 100 Yuan is not a dispatcher, such as the design of the corresponding costs.

The above mentioned two types of mobile advertising mode, can be a separate region for the ads, according to gcenter corresponding advertising unit price of 0.05 yuan/effective display times, that is, facing 1000 local consumers cost 50 yuan. This price is far less than the distribution of publicity, not only will not cause the cost of business marketing can not afford too high, but also do not destroy the original price system, but also accurate for mobile phone users in the region to carry out advertising, more accurate.

and the LBS advertising model, through the consumer's current region to provide the nearest entertainment, food and beverage information, but also has a precise advantage.

Mobile advertising is still booming, with more than 700 million of users in China who are far more mobile than internet users. Will be in the near future to "the fifth media" to provide more enterprises really reasonable, professional, accurate marketing promotion program!