In: Operations Management
Explain the difference between a “pull” promotional strategy and a “push” promotional strategy. Under what conditions should each strategy be used?
Push and pull promotion strategies differ in every respect from each other.
Push strategy.
Such a strategy is opted to push the product towards (figuratively ) customers. Marketing efforts are directed to channel partners. Third parties are important in this strategy to become point of sale for sellers. This strategy helps making customers aware of the products. Under this strategy emphasis of the company is on resource allocation. Lead time is long since the products have to made available to third party sellers. Trade promotion, sales force etc are how this strategy is implemented.
Pull strategy
This strategy is different interms of its target and where it's marketing efforts are directed. Under this strategy, customers are not informed but are attracted towards the brand. Marketing efforts to pull the customers towards products by encouraging them to buy their products. Here emphasis is on responsiveness of the customers. Customers demand the product from sellers under this strategy. Lead time is short under this strategy. Advertising via TVs , emails, product combinations etc are its uses or how they are implemented.
Conditions under which such strategies should be used ?
1. Push strategy :
When the customers aren't loyal to the brand or the product isn't established in the market. Or when the product or brand is new to create market or increase market exposure.
2. Pull strategy :
When market is loyal to the brand and its products and there is an excessive stock. Pull strategy is used when there is a need to create extra demand. And usually works with brands with great market reputation and awareness.