Strategically out of the promotion cycle.docVIP

 PAGE \* MERGEFORMAT 29 Strategically out of the promotion cycle Sales promotion including the majority are short-term stimulation of tools to encourage consumers and traders more rapidly, the larger quantity to buy a particular product / service. Reality the promotion of certain industries, and there were some sour, promotional frequency is too high, too much promotional efforts, promotion duration too long, way too much promotion directly to resort to price discounts. This type of promotion is a kind of vicious promotion, or is called over-promotion, this promotion with very little difference between the price war. But the real price war is often the deliberate arrangement of corporate strategic actions, a series of pre-preparation is a top-down, and has a clear strategic intent, no matter the intention of eventually be achieved. Excessive promotions are short-term, temporary, passive tactical behavior, are often bottom-up, there are a greater blindness, its paradoxical ‘sales targets’ are generally to be honored. In some cases, companies over-promotion to a regional market, will lead to the local market competitors in the same promotional efforts rebound, but also to stimulate internal to follow suit, serious, it triggered a nationwide promotional war, became a de facto price war. This price war is not the business of planning, the timing of its occurrence often benign price war does not meet the right time, it will usually result in a permanent decline in profitability of the business, bringing huge losses to the enterprise. This promotion because of blindness, will create misunderstanding between enterprises, so that all companies have felt the need to pre-empt to the promotion, so as to avoid greater losses caused by passively respond to, when there will be ‘promotions are seeking death, non-promotion was waiting to die ‘promotion cycle. Because of the dangers of excessive promotion so great, companies should be how to avoid the issue of over-doing a g