Push and Pull Promotional Strategy - Coursework Example

Push and Pull Promotional Strategy Name : Tutor Subject Date: Explain the difference between “pull” and “push” promotional strategy Companies use various promotional strategies when promoting their products. They chose the most efficient strategies that will ensure that their products gets to the target market. Some of the promotional strategies are commonly used by manufacturers, to get their products sold comprised of the Pull and Push promotional strategies. This paper will discuss the main difference between the push and pull promotional strategies. Push Strategy This promotional strategy aims at putting the product in a strategic point whereby the customers will see it unconsciously. It ensures that the customer is aware of the existence of such product in the market. These goods are manufactured in a way that it will attract the customers’ attention. According to Santo 2012, this works well especially when the manufacturer has developed a positive relationship with the customers. Furthermore, the product that is mostly used in this promotional strategy are the products that are impulse purchased type item. Some of the examples of the push strategies comprise of showrooms, trade shows, influencing intermediaries to stock the products and establishing as reliable supply chain so that the products can be distributed efficiently. Advertisement is the most essential tool because it will enable consumers to be aware of the existence of particular products in the market. This strategy works well when promoting products that are low valued and are categorized under impulse buy items. It is efficient, and many companies are using to introduce a product to the market. However, the product requires a lot of advertisement that are appealing to the eyes of the potential customers. There are various ways in which a company can use a push strategy to get the product known to many potential customers. These include: I. Contacting trade shows and even placing the products in the showrooms. In this way, business can demonstrate the key features of the product to the potential customers. II. Companies can sometime encourage retailers to stock some specified items. This always happens in rare cases because retailers have limited space for stocking goods. Retailers always stock products that they know they can easily sell. III. The companies are always strategizing and developing a reliable supply chain to ensure that particular products are always available to retailers. According to Frederick Taylor: a management scientist, push promotional strategy work best in a situation where the seller or manufacturer has established a mutual relationship with the customers. For example, the mobile phone providers normally send text messages to the consumers so as to push them to adopt the latest phone in the market. This mode of pushing customers to buy an improved item (e.g. Mobile phones) is only effective if the customers’ taste and preference are for that product. Besides, push strategy is also used when developing a market for new products, especially high priced products that target a specified market segment. Pull Strategy This is an advertising strategy that aims at stimulating demand and motivating potential customers so as to seek and used certain specified items. The strategy aims at the final end users of such products in the market. To ensure the successfulness of this strategy, manufacturers need to produce goods that have strong features and visible brands so that customers can get attracted to such products. There are various ways in which companies can adopt and use when promoting their products through pull promotional strategies. These strategies include: I. Vigorous advertisements of the products in the markets II. Building strong relationships with customers so that the customers will be interested with the company and their products III. Satisfying customers so that they can provide referrals to other potential customers in the market. IV. Using sales promotions for the new products and providing discounts for such products. The effective application of the above strategies will enable supply to develop demand for the products that are being provided in the market. When the demand for a certain product is high, retailers will be motivated to stock more of that product so that they can develop a high flow of cash flows. Some of the companies that are effectively using pull strategy include the Apple Company. The Apple Company has been using the pull promotional strategy in launching iPhones and iPods. Besides, the music industry has utilized pull promotional strategy in selling their products. The music industry has been able to make huge sales through the application of pull promotional strategy because of digitization and the emergence of social networking websites. Some of the music platforms that have managed the power shift from the producers to consumers include the iTunes and the Groove shark. The following diagram compares the Push and the Pull promotional strategies in the market. Discussion of the effectiveness of ad on the products When the recession grips the nation, business will only survive through the use of advertisements. Companies will only survive if they adopt effective marketing strategies such as Pull and Push strategies. Keller, 2010 believes that the use of ads is the essential solution for slow moving products during unstable economic times. Business and companies need to take a hard look on their existing plans, for example, marketing plans. They need to look for a specialist who will design effective ads that can attract attention of the customers. Adverts are very effective for the products because it arouses curiosity. Retailers are able to sell new products that are in the market for the first time because of advertisements. Without advertisements, consumers will buy what they have been using for a long time and not new products. It is correct to say that the ads are effective in selling products. Pull promotional strategy (Answer for PULL AD 1) The advert below is an example of pull strategy The above advertisement aims at stimulating demand for a product. This advert aims at enticing consumers to give up their current phone service and adopt the most efficient CREDO. This is a perfect example of a perfect pull strategy (Frazier at al, 2012, p. 63). (Answer for PULL AD II) Another example of adverts for pull promotional strategy is advertisements of toys shown below Marketing theories The adverts are very essential because it aims at being a market leader by delighting customers. The products advertised above aims at bridging the gap between the producers and the end consumers. Marketers could also carry out market research to establish the customer buying behavior so that they can design ads that can satisfy the needs of the customers. Push promotional strategy (Answer for PUSH AD 1) In the advert below, it encourages middlemen such as retailers to stocks good for resale. The emphasis of push strategy is to make the final user to be aware of the product in the market. This promotional strategy combines the resources of all the supply chain to ensure that the products reach the end user in the market. (Answer for PUSH AD 1) The advert below shows the promotion of a new product in the company This promotion targets retailers who will in turn sell to the final consumers. Push promotional strategies are mostly used for products that need to be stocked for resale. Marketing theories It is essential for marketers to use the marketing mix when advertising these products to the next supply chain. They should mention all the positive features in the product and their benefits. Furthermore, the manufacturer needs to brand their products differently. Branding is essential because it helps in identifying goods and can be used to display the image of the company. References Frazier, Gary L., Jagdish N. Sheth, and Jagdish N. Sheth, eds. Contemporary views on marketing practice. Marketing Classics Press, 2011. Keller, Kevin Lane. "Brand equity management in a multichannel, multimedia retail environment." Journal of Interactive Marketing 24, no. 2 (2010): 58-70. Santos, Sónia Marisa Valadas Nunes Correia. "Study of a supply chain performance following a push and a push-pull strategy." (2012). Read More