Three ways to get traffic

Look at the picture I posted below. This is a picture from my marketing course. All sales are traffic x conversion rate (I will write about this topic another day, it should be an earlier article than this one). The difference between industries lies only in the different ways of obtaining traffic and improving conversion rates.

From a marketing perspective, the world's goods (including services, hereinafter collectively referred to as goods) can be divided into three types: those that everyone needs, those with sparse users, and those with clear users. Then, based on the degree of concern users have when purchasing products, they are divided into two types: low involvement and high involvement, which together make a total of 6 sales models. Because there are basically no products in the world with clear sales targets and low user involvement, there are actually only five sales model combinations left. Then, products with high user involvement and that everyone needs are usually handled by two methods: regional segmentation and seller's market, and there are not many marketing tricks. For example, real estate, college, degrees, hospitals and other important facilities are commodities that everyone needs and have a high degree of user involvement. The marketing of such commodities becomes a seller's market because everyone needs them and the user involvement is very high, and buyers face severe competition. This model is relatively simple, so the final marketing mix is ​​simplified into four types.

Among these four types of marketing, for products with clear user base and high involvement, sellers are very clear about who the buyers are. All they need to do is to increase the conversion rate, and no traffic is needed. Huawei's sales method for equipment to telecom operators is typical. Through years of practice and optimization, they have developed a sales model that improves conversion rates. As long as Huawei enters a market with clear customer base, it will be invincible and able to crush all enemies with ease, with the momentum of "the north wind blows the white grass to the ground and breaks it." I may write an article to discuss how to improve conversion rates in the future, but this article does not discuss this issue.

Those who leave Huawei to start a business have an obvious weakness and strength, which is that they are good at handling projects, but have no way to handle traffic. The ability to handle traffic in the Huawei system is relatively poor, and once they enter an industry that requires "traffic", they are helpless . Although Huawei mobile phones sell very well, the methods used here require strong investment and background. These conditions are not replicable, so once the environment changes, they will be of no use. Huawei's way of obtaining traffic in areas such as enterprise networks and cloud computing is still very clumsy. It continues its usual practice of selling equipment to operators, but the investment is too huge and cannot be economical. I think Huawei has not yet grasped the key to this field, and is even further away from solving this market and dominating it.

The other three models: low-involvement products that everyone needs, low-involvement products with sparse users, and high-involvement products with sparse users. If you want to sell this type of product, you must first solve the traffic problem.

I divide the methods of solving traffic problems into three types:

The first one is the hard and stubborn method.

For entrepreneurs or large companies entering a new industry, they are unknown and it is basically impossible for users to come to them on their own initiative. If you are selling products that everyone needs, such as selling sneakers or nuts online, but you find that the traffic for all these types of products is controlled by others, it is extremely difficult for you to get the traffic. You have no money, no supporting facilities, and no various resources, but you still have to fight hard. If you are dealing with a product with a sparse user base, you will face two difficulties: how can you, an unknown person, match yourself with users whose whereabouts you don't know? There is only one way, which is to stick to it and not waste any opportunity. Take one order at a time. As you continuously improve your product and make it increasingly competitive, each sale is not mainly for you to earn income and cash flow, but for the accumulation of business potential. If you want to move to the next level in the hard-working and stubborn mode, every sale must generate intangible benefits beyond revenue. If you cannot accumulate potential energy, you will be trapped in the hard-working and stubborn mode for life.

The second method is saturation attack.

The revenue and sales of BBK brothers, OPPO and VIVO, have been booming in the past two years, which is really awesome. Last year, both of them ranked in the top three, and the price of their mobile phones is relatively high, so they make money. The marketing miracle created by OV has been repeated over the past 30 years of reform and opening up. To sum it up, it is the courage to launch a saturation attack.

In the past, Changhong, Haier , Sanzhu Oral Liquid, Kongfujia Liquor, and now BBK Brothers, Dong'e Ejiao, Six Walnuts and the like all have the same marketing strategy, which is saturation attack.

Take advertising investment as an example. If a manufacturer finds that it can earn more revenue by investing in advertising, then it will increase its advertising investment. If hiring a spokesperson is cost-effective, then he will hire more spokespersons, and so on.

Obviously, the profits from advertising investment will not increase indefinitely. At a certain point, the cost of advertising investment will be higher than the profit obtained. A typical example is Qinchi Wine Industry, which earned 200 million yuan in revenue when it invested 60 million yuan in advertising, but when it invested 312 million yuan in advertising, it could no longer earn more than the advertising income.

Saturation attack means aggressive marketing investment until the break-even point is exceeded. The same principle applies if you associate advertising with stores, the number of marketers , etc. The differences between industries are the differences in marketing mix and marketing resource investment. Those who are knowledgeable can better allocate resources. Once they understand the resource allocation, they will push it to the level of saturation attack, and traffic will be competed for to the maximum extent.

Everyone says that BBK is awesome. They are the killer in the field of small household electronics and their entry into that industry will scare their competitors. Judging from their overall business performance, their approach is to quickly launch a saturation attack after figuring out how an industry allocates marketing resources.

During the Korean War, there was a general in the US Army named James Van Fleet who was very superstitious about the amount of ammunition. I copied a passage from the Internet:

During the U.S. August summer offensive in the Korean War of 1951, the attack on Hill 983 consumed as many as 360,000 artillery shells in nine days, an average of 350 rounds per gun per day. Especially in the Battle of Shangganling, the U.S. military mobilized more than 60,000 troops, more than 300 artillery pieces, more than 170 tanks, and more than 3,000 aircraft. They poured more than 1.9 million artillery shells and more than 5,000 bombs on the positions of two companies of the Volunteer Army covering an area of ​​about 3.7 square kilometers. The intensity of the battle was unprecedented, especially the density of artillery firepower, which exceeded the highest level of World War II. Such an astonishing amount of ammunition consumption was called Van Fleet's ammunition consumption, which led to such high ammunition consumption being called "Van Fleet's ammunition consumption" in the future.

Van Fleet's ammunition load became a military term, and the saturation attack method was to deploy Van Fleet's ammunition load in a commercial battlefield. Most of China's marketing miracles are a victory for Van Fleet's ammunition.

OV is now frantically launching a saturation attack in populous countries such as India, Malaysia, and Vietnam, using Van Fleet's ammunition to attack these markets.

The third method is the default option method

Although the saturation attack method is effective and easy to use, its shortcomings are obvious, that is, it requires huge investment, and although the balance point exists, it is difficult to predict. Aggressive marketing often crosses the balance point, making marketing a disaster. There are many such cases in the history of Chinese marketing. Many of the 19 cases in Wu Xiaobo 's "The Great Failure" are due to excessive marketing intensity, which exceeded the break-even line, and marketing became a disaster. The marketing was exhausted and soon died.

A better and more clever way to have more ammunition than Van Fleet is to become the default option.

There is a saying at IBM that no one has ever been fired for buying IBM products. The logic is this - IBM is already the best in the industry, and problems with its equipment are inevitable. Buying from others will cause more problems. If problems arise with equipment purchased from other manufacturers, people will have reason to hold the person responsible accountable and deal with the issue. This logic holds true in many industries. IBM has relied on this statement to make countless fortunes over the past few decades.

You are thirsty on the street and pass by a newsstand. You don’t know what drink to buy, so you ask the owner to get you a bottle of Coca-Cola because Coca-Cola is the default option.

It can be said that the United States is outshined by China, and American companies are more powerful than Chinese companies because many of their companies have become the default options. The United States is particularly good at doing this, and the knowledge involved cannot be explained in just one article.

I went out to do some work the day before yesterday, and I didn't know what to eat at noon, so I went to a lot of restaurants. I saw a McDonald's , so I went in and ordered a Big Mac. This is the power of the default option. Of course, the Chinese part of McDonald's is no longer an American company. It was sold to a Chinese company some time ago.

There are also companies in China that have gradually achieved this status. For example, Huawei has become the default option in the operator equipment market. It is generally unthinkable to buy telecommunications equipment without considering Huawei. In the mobile phone market, Huawei is superior to OV in that it has gained a certain "momentum". They did not win by saturation attack. So, you will see that BBK Brothers, whose growth rate exceeded 100% last year, has collapsed, while Huawei's market share is still rising. However, there is still a gap between Huawei and the United States' default options. Huawei has only touched upon a little bit of the trick but has not grasped the true meaning of it, and it is still a long way from being able to operate it proficiently.

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