Cixi Shunda Industrial Co., Ltd
Promotion activities for the third and fourth tier markets in the home appliance industry to win the terminal market

Click: 0 Update: 2025-11-03 【Print】

In the past two years, most powerful manufacturers in the home appliance industry have been doing one thing, which is to expand their sales channels to the county, town, and township levels, and even some larger villages, in order to seize the rural market. In this process, in order to effectively occupy the vast rural market, most major manufacturers have developed products for the third and fourth tier markets based on their own situations and formulated price systems suitable for the rural market. However, the development of market competition has made it impossible to effectively occupy the rural market solely based on these factors. Referring to Kotler's classic 4P marketing theory: product, price, place, promotion, currently the most lacking in the third and fourth tier markets is promotional activities. In the primary and secondary markets, promotional activities led by chain channels have become the main driving force for increasing sales; However, in the third and fourth tier markets, sales are mainly driven by sales policies, and major manufacturers have not fully recognized the importance of promotional activities. Even if they recognize the importance of promotional activities, the actual operation process is often relatively simple, lacking effective and coherent operation ideas. They only package a few special priced models or simply promote them, which is quite arbitrary. Such promotional activities cannot achieve the expected results.

Promotional activities require effective division of benefits and layered incentives

At present, promotional activities in the primary and secondary markets mainly involve price reductions or buy and get gifts, supplemented by strong promotional campaigns. However, in the tertiary and tertiary markets, relying solely on these is not enough. In the third and fourth tier markets, the profitability of the channel system is crucial. Any promotional activity must effectively distribute the benefits between various channels, which requires not only promoting to end customers, but also developing corresponding policies to promote channel members such as agents and end retailers. This is because in the promotion process of the third and fourth tier markets, due to the shortage of sales support personnel from manufacturers, channel members have to bear the promotion and advertising role of the activity to a certain extent, and also bear part of the profit loss during the activity. In this case, without the support of relevant sales policies that cooperate with the promotion activity, it is difficult to mobilize the enthusiasm of channel members, and even channel resistance may occur, which greatly reduces the effectiveness of the promotion activity. In addition, sales personnel in the third and fourth tier markets also need corresponding incentive measures, as they are the executors of promotional activities. Only by effectively linking their interests with the sales performance of promotional activities can they promote a shift in their sales thinking from simple business oriented sales to promotional oriented sales.

Promotional activities require strong execution power

Unlike promotional activities in primary and secondary markets, the majority of promotional work is undertaken by home appliance chain channels. In the promotion process of primary and secondary markets, due to the limitations of channel partners' strength and sales concepts, the leading work of promotional activities needs to be undertaken by manufacturers. This situation not only ensures the dominance of manufacturers, but also requires them to have a strong sales team with strong execution capabilities. Due to the dispersion of channels in the third and fourth tier markets, without strong execution, promotional materials related to the promotion cannot effectively reach the sales terminals, and promotional information cannot reach end customers in a timely manner. No matter how perfectly planned a promotional event is, if its execution is lacking, then the effect of this promotional event is equivalent to zero.

The continuous sinking of sales channels among major home appliance manufacturers is bound to intensify competition in the third and fourth tier markets. In this situation, promotional sales will inevitably replace current business sales. Whoever effectively positions themselves in promotional activities, controls the pace of the entire sales channel, and trains an efficient execution team will stand undefeated in the next round of market competition.

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