notes of marketing management

Push and pull marketing strategies

A push promotional strategy makes use of*a company’s sales force and trade promotion activities to create consumer demand for a product. It involves convincing trade intermediary channel members to push the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. The company promotes the product through a reseller who in turn promotes it to yet another reseller or the final consumer.
In other words the producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. Trade- promotion objectives are to persuade retailors or wholesalers to carry a brand, give a brand shelf space, promote a brand in advertising, and/or push a brand to final consumers. Typical tactics employed in push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, and premiums.
A good example of “push” selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Car phone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia – for example offering subsidies on the handsets to encourage retailers to sell higher volumes.

A pull strategy attempts to get consumers to “pull” the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.
This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers as possible to go to retail outlets and request the product, thus pulling it through the channel. Consumer-promotion objectives are to entice consumers to try a new product, lure customers away from competitors’ products, get consumers to “load up” on a mature product, hold & reward loyal customers, and build consumer relationships. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
Typical tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes, games, and point- of-purchase (POP) displays. A good example of a pull is the heavy advertising and promotion of children’s’ toys – mainly on television.

Push and pull marketing strategies

1. Push 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.

"Taking the product to the customer"

Examples of push tactics

• 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

2. Pull strategy

A pull strategy involves motivating customers to seek out your brand in an active process.
"Getting the customer to come to you"

Examples of pull tactics

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

Push strategy explained

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 strategy explained

'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 which 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.
Every marketing style falls into one of two categories: push or pull. Do you know the difference between push marketing and pull marketing? Does your organization employ one or the other? How about both? More on that later. First, let’s break down the two main marketing strategies.
Ladies and gents, class is now in session.

What is Push Marketing?

Push marketing brings content to the user. Also known as “traditional marketing,” push is the grandmother of modern marketing. Direct mail marketing, such as catalogs and brochures, are prime examples of push marketing.

What is Pull Marketing?

Yes, you guessed it, pull marketing is the opposite of push marketing. This type of marketing “pulls” a consumer into the business. Meaning: the customer seeks out your company. Today’s consumer is an avid researcher. He or she reads reviews, conducts keyword searches and asks Facebook friends for suggestions. Pull marketing gives you an opportunity to attract the customers who want answers you already provide. When you see a social media offer for a product you love, this is pull marketing at work.
Differences between push and pull.

1.      Concept

Push Marketing: This is also known as outbound marketing, since it pushes marketing out to customers.

Pull Marketing: This is also known as inbound marketing. The term “inbound” means that your marketing efforts generate a response: interest, inquiries, transactions, etc. That is, customers come to you for answers.

2.      Strategy

Push Marketing: Push strategy is about devising ways to place products before prospects. This usually involves some form of paid advertising: TV ads, radio spots, billboards and flyers.

Pull Marketing: Pull makes it easy for customers to find you. The focus is on creating awareness and increasing brand visibility, particularly on the web. Pull marketing strategies include eBooks, white papers, blogs and social media marketing.

3.      Channels

Push Marketing: This type of marketing typically starts offline, with a few exceptions. A direct mail postcard is an example of offline marketing. An email offer is a perfect example of how push marketing can translate to the web. You can also combine both. For example, send a postcard that includes a URL to an irresistible online offer.

Pull Marketing: Pull is usually a web-based method. Blog posts, eBooks and other online-content machines are forms of pull marketing that live on the web.

4.      Application

Push and pull also differ in application. Let’s consider a few specific examples.

Example 1: Phone

Push:You pick up the phone and cold call a list of prospects

Pull:They call you and place an order, having found your number on your site

Example 2: Direct Mail

Push: You mail out a holiday coupon

Pull: A customer emails you to inquire about your services

5.      Engagement

Push Marketing: If done incorrectly, push marketing can be disruptive. As a result, push customers tend to be less engaged. This happens when marketers send a “Hail Mary” to a large swath of customers hoping for a lucky touchdown.

Pull Marketing: Marketing is easy when customers come to you. Pull marketing generally enjoys a higher level of engagement because the customers seek out the companies. Pull marketing can also fail if you target the wrong audience, or betray a customer’s trust.