Push Pull strategy in marketing

8/12/2019 Push Pull strategy in marketing

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Promotional Mix

StrategiesPush versus Pull

and More


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To gain trial among nonusers of a brand/service.To increase repeat purchase and/or multiplepurchases.

To expand brand usage by suggesting newuses.To defend share against competition.To support advertising campaign, theme, image.To increase distribution and/or dealer, retailercooperation.Short-term vs. long-term goals and relationships.

Sales Promotion:


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Sales Promotion:

Creating an immediate sale isthe primary objective.

Extra incentives to enhance movementand sales. Helps the selling process.

Direct inducement that offers an extra

value or incentive to sales force,distributors or the ultimate consumer.

Stimulates Dealer and Channel Involvement.


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Sales Promotion:

Increasingly, the gimmicks aregoing away. More scanning data.

Step up to the challenge of real, brand buildingvalue, the kind that sparks genuine consumerand retailer interest.

Contribute to marketing goals.More Events and Product Licensing


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Influences

Push Strategy calls for using thesales force and trade

promotion.

Pull Strategy calls for spending onadvertising and salespromotion to buildconsumer demand.


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Push Strategy:

Persuade wholesalers and retailers to carrybrands.Give a brand shelf space.

Promote a brand in coop advertising.

Producer Wholesaler Retailer Customer


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Push Strategy:Be careful of those big displays at the end of theaisles.End Aisle Displays. End Caps.

Look at the prices. Only about 40% isactually on sale. Because they are so bright, big and visual, wefeel its on sale.



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Pull Strategy:

Entice customers to try a new product.Lure customers from competitive products.Hold and reward loyal customers.



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Push Tools:

Deals- Allowances, Price-offs and DiscountsDisplays and Point of PurchaseDealer Premiums

Samples and Free GoodsBuy-Back GuaranteesCooperative Advertising

Advertising MaterialsPush Money (Spiffs)Dealer Meetings and ContestsSpecialty Advertising Items


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Pull Tools:

Sampling---in-store, events, newspaper, in-packCents Off Promotions and Coupons (-2%)Continuity/Frequency and Loyalty Programs

PremiumsSLO (Self-Liquidating Offers/Premiums)Point of Purchase Displays

Contests, Games and SweepstakesRebates and Cash refundsFSIs (Free -Standing Inserts) 80% of distribution

Advertising Specialty Items


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Hints and Comments:Coupons getting clipped. Growing retailerpower and new accounting rules makecouponing less attractive .

2002 Package-Goods Marketing Budgets 24%: Advertising

15%: Coupons and Customer Promotion+61%: Retail-Trade Promotion

100%

1997: 23% Advertising (same)24% Coupons/Cust. Promotion53% Retail-Trade Promotion


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Hints and Comments:

850 FSIs (free standing inserts)per person in 04. 251 BILLION coupons. FSIs

are the vehicle in distributing themajority of coupons. Total pagesincreased 5.9 percent in 05.Average coupon face values grew

6.7%, to $1.09.Offer duration increased to 10.6weeks.Now more Household, and

Heath & Beauty aids


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Hints and Comments:The average face value of FreeStanding Inserts (FSIs) hit $1.03,in comparison to $.95 in 2003,representing an 8.1% increase. In

2004 face value reached $1.00 markfor the first time.We are seeing more manufacturerspresent greater incentives toshoppers, whether on a face value orper-unit basis.Marketers continue to validate thatFSIs are a great tool to buildawareness and gain trial.Marx Promotion Intelligence 04 FSI Trends


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Hints and Comments:Coupons can be delivered with afull page of advertising. i.e.,RestaurantsCoupons on new items but also

on products that haveplateaued. To keep prices lowand keep products on shelf.$30 savings for a diabetictesting kit or 25 cents off flour.Demographics: 43% men; 32%live with income of $40-75K.


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Hints and Comments:Coupon experts inspire moreuse. Coupon savvy shoppers are advisingother consumers to learn salecycles and buy items on sale tosave the most money. Althoughcoupon fraud exists, manufacturersoffer coupons to entice trying anew product or switch brands.Big increases: Vitamins, Rug andRoom Deodorizers; Prepared andFrozen Foods; Hair Care; Cereals.Decreases in Household cleaningproducts.


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Hints and Comments:

Walgreens and 15 top package-goods marketers are rolling out aRFID system to electronically trackwhen, how long, and wherepromotional displays are placed inthe chains 5,000+ stores. 1/06


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Hints and Comments:Slotting Allowances: The feesretailers collect frommanufacturers to ensure shelfspace for new products make themarketplace more efficient, aYale/Cornell study found."We find that when retailersperceive that a product is likely tobe a sure hit, they don't seem toask for slotting allowances ...manufacturers don't offer slottingallowances when they perceive theproduct to be a sure dud.

Progressive Grocer (4/05)
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Questions:

Are distributing drug samplesto doctors a push or a pullstrategy?

Incentives from HBO to hotelsand motels. Push or Pull?Beer.com produced 50K bottlecaps featuring its name and left

them on bars during spring andwinter breaks. Push or Pull?


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Question:Wal-Mart TV network (in store)42 plasma screens

A smart buy or a goodwill,defensive gesture?Sets are silent.In-store advertising system.In fall 06, $247K, 129 millionimpressions and CPM: $2.28includes three :30s, and five:10s, every two hours.

AdvAge 9/06


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Sales promotion budgets are usuallydivided into three categories:

1. Consumer advertising2. Consumer promotion3. Trade promotion

Companies in same industry can putemphasis on Push or Pull .

Summary:


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Push strategy is appropriate withlow brand awareness in a categoryand brand choice is made in store.

Can be an impulse purchase andproduct benefits are understood.Pull strategy works best with high

brand awareness and loyalty, or highinvolvement in category andcustomers look for productdifferences.

Summary:


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Promotional Mix

StrategiesPush versus Pull

and More


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Hints and Comments:Wal-Mart Touts In-Store TV

Research claims advertising on itsin-store marketing network, withPremier Retail Networks, is moreefficient than Cable and Network TVadvertising in generating sales. Asurvey of TV watchers conducted bythe TNS Media & Entertainment

Group found that 15% of viewerspurchased advertised productsimmediately after seeing them onan in-store broadcast.

MediaPost Communications 11/30/05
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Push Pull strategy in marketing