Push and Pull Marketing Strategies Presentation PDF

PUSH AND PULL MARKETING BMI3C STRATEGIES SUCCESS CRITERIA I will be successful when I can: Differentiate between Push and Pull marketing strategies List examples of each strategy Manufacturers and Retailers Manufacturers - Make (and possibly design) a product. Retailers - Are stores that...

PUSH AND PULL MARKETING BMI3C STRATEGIES SUCCESS CRITERIA I will be successful when I can: Differentiate between Push and Pull marketing strategies List examples of each strategy Manufacturers and Retailers Manufacturers - Make (and possibly design) a product. Retailers - Are stores that buy products from one source (either a manufacturer or wholesaler) and then sell it to consumers at a higher price. Marketing Strategies Marketing strategies can generally be categorized into two main types: push and pull marketing. Understanding these strategies helps businesses effectively promote and sell their products. MANUFACTURERS are the ones who need to choose between push and pull marketing. Retailers are a part of the process who simply react to which of the two strategies the manufacturers use. PUSH STRATEGY Push Strategy: A push promotional strategy involves “pushing” or promoting the product to the customer at the point of sale main goal is to increase visibility and encourage purchases A manufacturer of a product needs to convince (sell) the product to retailers to put the product on the shelves Most manufacturers want to get their product into stores like Costco or Wal- Mart Shelf space, however, is very limited so there is great competition for it PUSH STRATEGY Push Strategy: A push promotional strategy involves “pushing” or promoting the product directly to the customer main goal is to increase visibility and encourage purchases Works best with lower-value items (i.e. toiletries, soft drinks, grocery items) Consumers don’t spend a lot of time deliberating these purchases, so push marketing can encourage impulse buying at the point of sale Market for these items is very competitive, so push marketing helps brands stand out through promotions, discounts, eye-catching displays EXAMPLES OF PUSH STRATEGIES Trade show promotions to encourage retailer demand Direct selling to customers (door-to-door to visit businesses or businesses Negotiation with retailers to stock your product EXAMPLES OF PUSH STRATEGIES Efficient supply chain allowing retailers an efficient supply Packaging design to encourage impulse purchases Point of sale displays - may include a salesperson at the display in the store pushing the product on customers. Sales promotions (buy one, get one free) PULL STRATEGY Pull Strategy: A pull strategy involves motivating customers to seek out your brand in an active process Focus on brand awareness and loyalty Refers to the customer actively seeking out your product and retailers placing orders for stock due to direct consumer demand. A highly visible brand which can be developed through mass media advertising Create the demand, and the supply channels will almost look after themselves. “Getting the customer to come to you” PULL STRATEGY Pull Strategy: A pull strategy involves motivating customers to seek out your brand in an active process. A highly visible brand which can be developed through mass media advertising Create the demand, and the supply channels will almost look after themselves. “Getting the customer to come to you” PULL STRATEGY Advertising and mass media promotion Companies like Nike invest in high-profile ad campaigns featuring famous athletes to create strong brand appeal Air Jordan 1 Commercial: B anned Word of mouth referrals, social media marketing PULL STRATEGY Content marketing Such as blogs or videos; for example, food brand may share healthy recipes that utilize their products Customer relationship management Sales promotions and discounts (through  So, to clarify the difference: Push Pull Targeting At the point of purchase; they Before they’re at the store. Use Customers... decide to buy it on the day they promotions to make them want to see it in the store seek it out (e.g., make them want to go to the store to buy it). With Focus on the retailers. Convince Ignore them. The focus is on getting Retailers... them to put it on the shelf by the customers to demand the offering them discounts and product. Once the customers display items. demand the product, the retailers are going to want to order from you. Hose vs Magnet Analogy - Push marketing is like turning on a water hose The water (product) is forced out through the hose (distribution channel) to reach the plants (consumer) - Pull marketing is like using a magnet to attract metal objects The magnet (brand) creates a strong force that encourages the metal objects (consumers) to come closer)  Video Review SUCCESS CRITERIA I will be successful when I can: Differentiate between Push and Pull marketing strategies List examples of each strategy