Network Marketing: A magic weapon to help small and medium enterprises break through development dilemma

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

The current domestic small and medium-sized trade situation is really grim. To give you a shocking survey: According to the statistics of the past 5-10 years, our country has 5%-10% of small businesses bankruptcy every year, if the economic downturn, the collapse of small businesses may occupy 8%-10%. In the first half of 08, 67,000 small and medium-sized enterprises in China have closed down, and nearly 5,000 state-owned enterprises have closed down every year. China's small and medium-sized enterprises are in the midst of winter.

What is the cause of this?

The old people had three mountains on their heads: landlords, bureaucrats and colonies. Now there are three big mountains on the head of small and medium-sized enterprises: raw material prices, labor costs and inflation. These three mountains are responsible for the successive failures of SMEs. Because most of our enterprises (nearly 80%) are labor-intensive enterprises, the profit is originally very thin. Now inflation, raw material prices, rising labor costs, recruitment difficulties and many other factors will be small and medium-sized enterprises originally narrow profit space squeeze more narrow, even difficult to foothold.

How to break through these difficulties?

1. Reduce costs

The costs of small and medium-sized enterprises mainly include raw material costs, production labor costs, marketing costs and store costs (retail enterprises). The price of raw materials cannot be reduced or controlled because it is controlled by the entire trade environment. Labor costs cannot be reduced because it is a national policy that must be implemented. But it can reduce the cost of marketing and store, these costs are reduced, small and medium-sized enterprises will naturally increase profits.

Traditional business model under the main trade mode: salesman door-to-door, trade show, telephone/direct mail sales, as well as advertising sales. This kind of traditional sales model produces the sales cost is also considerable.

How to reduce these costs in order to improve the profits of enterprises? The answer is "internet marketing".

A. Marketing costs-salesman costs

In general, the number of small and medium-sized salesman in 5-20, each salesman monthly base salary of about 1200-1500. Of course do not rule out those older senior salesman every month to create considerable value for the enterprise, but now the shortage of talent, many companies can only recruit novice to retrain, this part of the first few months of the novice can not create value, so the enterprise may also need to pay training costs and assume "no performance" risk.

However, the realization of network sales can effectively reduce the cost of the salesman. The traditional model needs to use 5 salesman to create the performance in the network sales may only need one person to complete. This is because the traditional mode is point to point sales, and generally is the salesman actively find the door, the customer in the reluctance and passive status, the time spent energy, and the effect is not particularly ideal. But the network sales is the opposite point of sales, can take the initiative to enable customers to find you, covering a wide range of customers, the cost of time and energy than traditional sales are much smaller, more efficient.

B. Marketing costs-exhibition costs

Traditional trade mode, foreign trade enterprises to direct contact with foreign customers will be more difficult, in addition to through foreign buyers in China's office sales, there is a more common mode is the exhibition, the large-scale exhibition has two times a year Canton Fair and the annual China Rendezvous. Canton Fair Ordinary booth fees ranged from 250,000, if it is auto parts, decoration class of the booth fee is higher, there are hotel fees, traffic tolls and so on, these are not negligible costs.

But what is the cost of the stalls that internet marketing needs? The network marketing needs the booth cost is also the Enterprise website, an ordinary enterprise website in the Ningbo in the general price is in 3000-10000 or so, this is the enterprise life-long, does not like the Canton Fair also to set up the time limit. and NITC's website is "0" Yuan, the booth is basically no cost. Some people say that the trade fair customer flow is big, turnover is high. But the traffic is bigger, one day at the fair to entertain up to 100 customers. But the site, the site he is a machine, is not tired, and 365 days a year 24 hours are constantly working in the meeting with customers.

C. Marketing costs-advertising costs

The traditional advertising mode mainly includes: television, radio, newspapers, outdoor advertising. The cost of these ads is very high, the Ningbo evening paper "6 x 11.5" Large black and white advertising to 138,001 days, very expensive. And these ads have regional limitations and timeliness, advertising customers face relatively small, can not fully penetrate into the potential customer base.

But what about online advertising? We don't talk about those portal ads and video ads because the cost of those ads also very high, the network is also very low-cost or even cost-free ads, similar search engines, major community forums, mail marketing, blogs, and so on, these ads are very inexpensive, and because the Internet is very wide spread of information, Can be unrestricted, so that even foreign buyers all over the country can easily see. If you can borrow some hot spots to hype marketing, may be your corporate brand awareness overnight can be swept across the country.

D. Shop costs

Shop cost is only for those who also carry out retail business. We all know that the current land prices are very expensive, rent a downtown area of the gold floor of the shop is expensive to rent, enterprises if there is no high profit income is simply can not afford to rent the store.

But we open shop on the internet is not the same, the cost is very cheap compared to the traditional shops. As I said, the custom price of an enterprise website is 3000-10000 yuan, and many open source systems on the Internet, such as NITC, build station star, Shopex Price is free, and this is your lifelong wealth, do not have the same as the traditional shop, worry about poor management, unable to pay the shop rent and be collected return. And we can use the search engine technology to the company's online shop (website) to promote the downtown area of the prime location (search engine home), so that the influx of traffic is also a steady stream of investment return is very high.

2. Develop new sales channels to increase the number of business orders

Raw materials and labor costs are the result of the rise in the profits of enterprises are reduced, then the enterprise to keep the original profit margin how to do? Then only the price increase, which led to the result is the loss of old customers, new customers difficult to develop. Nearly 80% of Chinese enterprises are manufacturing, in the product homogenization of the same time to fight the price, the traditional trade market is too much competition, you have lower prices there are always lower than your price sellers, enterprises have no chance, how can attract customers?

Moreover, the traditional sales channels of narrow sales, information flow, competition, investment costs are relatively high, the total reason for the general cause of traditional sales more difficult to do, so we have to find another new continent to take root, that is "Internet."

Why can network marketing increase the sales of enterprises?

One is because the current internet market is not saturated, competition is small, now enter the enterprise still has a broad living space. Second, because the network marketing sales face a wide range, no limitations, high efficiency, but also the initiative to customers. Third, because network marketing saves a large amount of traditional sales costs, not only enhance the profits of enterprises, but also make the price competitive.

3. Shorten the product sales line, directly find the end customer

Why is the profit of the traditional small and medium-sized enterprises so thin, on the one hand because of the large cost of investment, on the other hand, because the product sales line is too long, the main product profit by the intermediary of the channel to deprive enterprises can only get a small amount of profits, arduous and no money to earn. We have a production of ballpoint pen enterprises, the production cost is 0.2 yuan, sold to the dealer's price is 0.4 yuan, to the end of the customer's hand, the price of this ballpoint pen has become 2.0 yuan. Enterprises to earn only 0.2 yuan of profit, there are 1.6 yuan of the big head profit is who earned it? is the intermediary responsible for profiteering only channel business.

Why do foreign companies make money so much? Because many companies use direct marketing model, eliminating the intermediary channels, so that profits ultimately belong to the production enterprises. We look at Amway, Avon, Mary Kay, Cosway, etc. in China's "happy enclosure" of the direct sales industry know that these direct sales industry, although in China has been criticized, but abroad is very popular. In fact, this kind of direct marketing industry model itself is very good, but into China many become "pull head showmanship" business, people are disgusted.

Why is the direct marketing industry so profitable, just also dropped, because he mastered the end customer. Who has mastered the terminal sales, who is the market winner. Our traditional enterprises because of the limitations of geographical and channel, it is difficult to fully grasp the end customer. But network marketing is for the enterprise to develop such a channel for the end-customer. It can direct your terminal customers to find you, without having to go through the flow of intermediaries and then sell the product to the end of the customer's hand, which not only greatly improve the efficiency, but also make the middle part of the "profits" to be squeezed back to the hands of the enterprise.

4. Strengthen the cultivation of brand, from Chinese manufacturing to China to create

This is the 2010 statistics data, the world's top 100 brands in the United States accounted for 52, and China does not have a list. China is the only brand in the world is "made in China", giving others the only impression is "cheap." Brand determines that China is only a trade power and Non-trade Power, China is the world's largest trading power, but also the world's largest manufacturing country and the processing countries, the world's almost 60% of luxury goods are processed in China, and China's processing enterprises to gain a little micro-bo processing profits, The huge brand profit is in the income brand merchant own bag.

A Barbie doll is priced at 400-9000 pounds, while China is earning only 35 cents. An Apple handset is priced at around 4000-6000, but it pays only about 200 of China's production costs. If only the products, China's small and medium-sized enterprises can only earn a penny, if the brand, can make a lot of money and long-term. Only has the brand to have the core competitiveness, can make the Chinese manufacture to the Chinese creation.

How to cultivate your brand?

A. Clear positioning, technical innovation

What is positioning, positioning is "you =?" For example, the same car, Mercedes = noble, BMW = driving, Ferrari = passion and speed, Volvo = safety, Audi = business, Toyota = practical, qq= cheap. Conversely, if people want to embody their identity will buy Mercedes, want to enjoy the passion and speed will sell Ferrari, want to be safe and stable will buy Volvo.

All brands have a clear positioning strategy, which is the best way to capture the customer's mind. Now the fight is not who is the first to enter the market, the fight is not who than who occupy the market share of large, fight is who first enter and occupy the customer's mind. This is very important. Although most of the companies doing is import and export trade, but also need to have a clear positioning. If you and other import and export enterprises do the same products, product quality similarity, price similarity, service similarity, then you will always be marginalized by the market, can never break through the plight of survival.

For example: The same online men's brand, number 0th male positioning is "Chao men", tend to casual fashion, while the lion's positioning is "business", more business and professionalism. So bring up casual men's brand, customers will be the first time Lenovo to "number 0th male", and refers to business men, customers will immediately think of "Bo Lions." This is differentiated positioning.

The 890 's is suitable for everything, because at that time the competition is small, the enterprise's living space is very big. Now, enterprises to survive and development must be market segmentation, brand segmentation, customer segmentation and channel segmentation.

Another is the technological innovation, many varieties, small batch is the industry's future development trend, who is strong in innovation, who occupy the initiative. Homogeneous products can only rely on price reduction to attract customers, and innovative products without publicity have customers to find.

Through the network sales means to save a sum of sales costs can be used for enterprise technology development and quality innovation.

B. Increasing brand awareness

Sales is the ultimate goal of all enterprises, and then good products if not sold he is only products, can not be converted into profits. The worse the product, it sold out, it is the value of the enterprise.

CCTV's signature slogan is: Believe in the power of the brand.

No matter which enterprise on the CCTV will immediately become a household name brand: Brain Platinum, gold wine, overlord, Sanlu and so on, CCTV near has become a brand of the through train, which is mainly in the CCTV's own brand impact and publicity efforts. Advertising is more, people's subconscious will naturally remember your brand. But the cost of traditional media advertising is very high, CCTV set a full day time period set advertising price of more than 200 million yuan, two sets, three sets of prices are more than 100 million yuan.

But if we use online marketing, advertising costs will be much lower. Here, by the way, traditional advertising media and internet media. Traditional advertising media mainly include: television, newspapers, radio, outdoor advertising. And the network media mainly includes: Search engine, portal network, video network, forum community, microblogging blog and so on. Traditional media not only expensive, with geographical, time difference above the limitations and conversion rate is low, and the network media input cost is small, coverage of the crowd is very wide, and feel the exact match, can make potential customers to find the door.

And because of the high speed of Internet information transmission and no region restrictions, many enterprises are also using hype for marketing, event marketing to plan well, overnight can make the brand effect of the whole country, which in the traditional mode of brand strategy is unimaginable.

This article by Suki (www.liudaliuda.com) original release, reprint please specify the source, thank you! qq:237524409, Welcome to Exchange!