Question

3d) Describe the difference between a push and pull strategy of promotion. Provide an example of a producer or manufacturer that uses the push strategy and one that uses the pull strategy. In your opinion, which of the two strategies is generally more effective at getting consumers to buy a product; why?

Answer 1

Answer:

Promotion is an important part of any marketing strategy. You can have the best product or service out there, but unless you promote it successfully, no one will know about it. There are three basic types of promotional strategies – a push strategy, a pull strategy or a combination of the two. In general, a push strategy is sales-oriented, a pull strategy is marketing-oriented and a push-pull strategy is a combination of the two.

Push Promotional Strategy:

A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase.A push promotional strategy works to create customer demand for your product or service through promotion: for example, through discounts to retailers and trade promotions. Appealing package design and maintaining a reputation for reliability, value, or style are also used in push strategies. One example of a push strategy is mobile phone sales, where manufacturers offer discounts on phones to encourage buyers to chose their phones. Push promotional strategies also focus on selling directly to customers, for example, through the point of sale displays and direct approaches to customers..

This strategy is like "taking the product to the customer" major examples of Push promotional strategy are,

EXAMPLES OF PUSH STRATEGY

• Trade show promotions to encourage retailer demand
• Direct selling to customers in showrooms or face to face
• Negotiation with retailers to stock your product
• Efficient supply chain allowing retailers an efficient supply
• Packaging design to encourage purchase
• Point of sale displays

• The term 'push strategy' describes the work a manufacturer of a product needs to perform to get the product to the customer.
• This may involve setting up distribution channels and persuading middle men and retailers to stock your product.

• The push technique can work particularly well for lower value items such as fast moving consumer goods (FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and are ready to make their decision on the spot.

• This term now broadly encompasses most direct promotional techniques such as encouraging retailers to stock your product, designing point of sale materials or even selling face to face.

• New businesses often adopt a push strategy for their products in order to generate exposure and a retail channel. Once your brand has been established, this can be integrated with a pull strategy.

Pull Promotional Strategy:

A pull strategy involves motivating customers to seek out your brand in an active process. A pull promotional strategy uses advertising to build up customer demand for a product or service. For example, advertising children's toys on children's television shows is a pull strategy. The children ask their parents for the toys, the parents ask the retailers and the retailers order the toys from the manufacturer. Other pull strategies include sales promotions, offering discounts or two-for-one offers, and building demand through social media sites such as YouTube.

Pull promotional strategy is like"Getting the customer to come to you" .Major examples are,

EXAMPLES OF PULL STRATEGY

• Advertising and mass media promotion
• Word of mouth referrals
• Customer relationship management
• Sales promotions and discounts

• 'Pull strategy' refers to the customer actively seeking out your product and retailers placing orders for stock due to direct consumer demand.

• A pull strategy requires a highly visible brand that can be developed through mass media advertising or similar tactics. If customers want a product, the retailers will stock it - supply and demand in its purest form, and this is the basis of a pull strategy. Create the demand, and the supply channels will almost look after themselves.
• A successful strategy will usually have elements of both the push and pull promotional methods. If you are starting a new business and intend to sell a product through retailers, you'll almost certainly need to persuade outlets to purchase and stock your product.
• You'll also need to raise brand awareness and start building valuable word of mouth referrals. If you have designed a product around the customer and have considered all elements of the marketing mix, both of these aspects should be achievable.

COMBO OF PUSH AND PULL

Some companies use a combination of both push and pull strategies. For example, Texas-based textile producer Cotton Incorporated uses a push/pull promotional strategy. They push to create customer demand through constantly developing new products and offering these products in stores; and pull customers towards these products through advertising and promotion deals.

According to marketing expert Blair Entenmann, in an article he wrote for his company MarketingHelp!, there is no single correct combination of push and pull. The amount spent on each type of strategy will depend on factors such as budget, the type of product, the target audience, and competition.

What am I thinking :

According to me Pull strategy is much better comapre to the others in the market.Compare to the push strategy cost of the pull strategy is very less and the man power is really low while comparing to the push strategy.Push promotional strategies work well for lower cost items, or items where customers may make a decision on the spot. New businesses use push strategies to develop retail markets for their products and to generate exposure. Once a product is already in stores, a pull strategy creates additional demand for the product. Pull strategies work well with highly visible brands, or where there is good brand awareness. This is usually developed through advertising.So that the pull strategy creating demand and making more customers to buy products and it's much relevant in the corporate world.