Promotional Mix Strategies Push versus Pull and More

Promotional Mix Strategies Push versus Pull and More

Influences n Push Strategy calls for using the sales force and trade promotion. n Pull Strategy calls for spending on advertising and sales promotion to build consumer demand.

Push Strategy: n n n Persuade wholesalers and retailers to carry brands. Give a brand shelf space. Promote a brand in coop advertising. Producer Wholesaler Retailer Customer

Push Strategy: n Be careful of those big displays at the end of the aisles. End Aisle Displays. End Caps. n Look at the prices. n n Only about 40% is actually on sale. Because they are so bright, big and visual, we feel it’s on sale. Producer Wholesaler Retailer Customer

Pull Strategy: n n n Entice customers to try a new product. Lure customers from competitive products. Hold and reward loyal customers. Producer Wholesaler Retailer Customer

Push Tools: n n n n n Deals- Allowances, Price-offs and Discounts Displays and Point of Purchase Dealer Premiums Samples and Free Goods Buy-Back Guarantees Cooperative Advertising Materials Push Money (Spiffs) Dealer Meetings and Contests Specialty Advertising Items

Pull Tools: n n n n n Sampling---in-store, events, newspaper, in-pack Cents Off Promotions and Coupons (-2%) Continuity/Frequency and Loyalty Programs Premiums SLO (Self-Liquidating Offers/Premiums) Point of Purchase Displays Contests, Games and Sweepstakes Rebates and Cash refunds FSI’s (Free-Standing Inserts) 80% of distribution Advertising Specialty Items

Questions: n n n Are distributing drug samples to doctors a push or a pull strategy? Incentives from HBO to hotels and motels. Push or Pull? Beer. com produced 50 K bottle caps featuring its name and left them on bars during spring and winter breaks. Push or Pull?

Question: Wal-Mart TV network (in store) n 42” plasma screens n A smart buy or a goodwill, defensive gesture? n Sets are silent. n In-store advertising system. n In fall ’ 06, $247 K, 129 million impressions and CPM: $2. 28 includes three : 30’s, and five : 10’s, every two hours. Adv. Age 9/06

Summary: n n Push strategy is appropriate with low brand awareness in a category and brand choice is made in store. Can be an impulse purchase and product benefits are understood. Pull strategy works best with high brand awareness and loyalty, or high involvement in category and customers look for product differences.

Promotional Mix Strategies Push versus Pull and More

Hints and Comments: n Wal-Mart Touts In-Store TV Research claims advertising on its in-store marketing network, with Premier Retail Networks, is more efficient than Cable and Network TV advertising in generating sales. A survey of TV watchers conducted by the TNS Media & Entertainment Group found that 15% of viewers purchased advertised products immediately after seeing them on an in-store broadcast. Media. Post Communications 11/30/05