In: Economics
Compare and contrast push and pull promotion strategies and what are the factors marketers consider when deciding which one to use.
The biggest difference between push and pull marketing lies in how to handle consumers. The idea is to promote products in push marketing, by pushing them on people. Find advertising displays in your grocery store or a shelf of discounted items for drive marketing. On the other hand, the aim is to build a loyal following in pull marketing and attract customers to the goods.
Push marketing is a sales tactic where companies seek to get consumers to take their goods. The term push stems from the idea that marketers are trying to push consumers toward their products. Popular sales strategies include trying to sell goods directly to clients via company showrooms and negotiating with retailers to sell their items to them, or setting up point-of-sale displays for them. In exchange for this increased visibility these retailers will often receive special sales incentives. Businesses also use push marketing when a new product is launched, or when attempting to stand out in a niche or competitive market.
In department stores which sell fragrance lines, one common example of push marketing can be seen. The fragrance manufacturing company will regularly give department stores sales opportunities to drive their products onto consumers. This strategy can be of particular benefit to new brands that aren't well-established or to new lines within a given brand that need more promotion. After all, being exposed to the fragrance at the store for many customers is their first encounter with the scent, and if they didn't know it existed they wouldn't know to ask.
The Pull Marketing strategy is the opposite. Pull marketing is aimed at getting consumers to come to you, hence the word pull, where marketers are trying to drag consumers in. Mass media advertising, word-of - mouth referrals and promoted sales promotions are traditional selling techniques used for pull marketing. From a business perspective, pull marketing aims to develop brand loyalty and keep consumers coming back, while push marketing is all about short-term sales.Businesses will usually use pull marketing when the consumer knows what they are looking for or what issue they need to address, but wants to pull to your solution as opposed to the solution your rivals are providing.
Often you can identify marketing campaigns pull from the amount of advertisement that is being used. Pull marketing requires lots of advertising dollars to be spent on making a household name for the brand and products. One example is the marketing of the toys for children. The business adverts the drug in the first level. Next the kids and parents watch the advertisement and want to buy the toy. As demand increases, retailers start running and attempt to store the commodity in their shops. The business has effectively attracted clients to them all the time.