Promotion is the main factor in marketing and businesses. Attracting customers is the main goal. The businessman has to push the products to the customers and also has to pull the customers towards the products. So, what is this Push and Pull Strategy, let’s know everything from the article.#ThinkWithNiche
All the entrepreneurs are aware of advertising and many other forms of promotions directed towards the target audiences. Television advertisements, radio advertisements, and even Newspaper advertisements all are the active part of promotions. But a company must have the knowledge of every action and channel that can encourage the target audiences.
According to George E. Belch and Michael A. Belch, “Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer’s products are part of a promotional Push Strategy.” The strategy aims to push the product through different distribution channels by belligerently selling and promoting the items to the trade.
Through push strategy, the promotion to the trade includes all the elements of the promotional mix. Push strategy always tries to encourage the resellers that they can make a profit on the manufacturer’s product and encourage them to order team merchandise and push it to their customers. Manufacturers may encounter resistance from channel members who are reluctant to accept on an additional line of products or labels.
In some cases, companies turn to a promotional pull strategy spending money on advertising and sales promotion efforts directed towards the ultimate customer. The pull strategy's objective is to generate consumer demand and motivate them to ask for the goods from the retailer. Seeing the customer demand, the retailers will order the product from wholesalers which in turn will appeal to the manufacturer. Thus, stimulating demand at the end-user level pulls the product through the channels of distribution.
Choose Between Push and Pull
Whether the companies will emphasize push or pull strategy, depends on several factors, including the company’s relationship with the trade, its promotional budget, and demand for the organization’s product. Companies that have favourable channels may prefer to use push strategy and work closely with channels members to encourage them to stock and promote their products. An organization with a limited promotional budget may not have the funds for advertising and sales promotion that a pull strategy requires and find it most cost-effective to build distribution and demand by working closely with resellers. A pull strategy may be suitable when the demand perspective for a good or service is favourable since it has unique advantages, is supreme to competitive products, or is very popular among customers. Companies often use a combination of push and pull strategies, with the emphasis on changing as a product moves through its lifecycle.
Now The Businessmen May Have the Question Why Should They Use the Push and Pull Strategy, What Are the Benefits of Using Them?
There Are Many Advantages of Push Strategy
1. Push marketing is very useful for manufacturers who are trying to launch their products through different channels and are looking for distributors to help them with product promotion.
2. It generates product introduction, product demand, and consumer awareness about the product.
3. Demand can be more effective and expectable, as the producer can produce and push as much or as little product to clients.
4. Useful for those manufacturers who sell low-cost products and want a cost-effective promotion for distribution.
5. An effective method to test new products in the market.
Now Let’s Have a Quick Look at the Advantages of the Pull Strategy
1.Direct contact with customers is very much effective through pull strategy.
2.Immediate payment is possible when customers don’t have credit card services and can pay online or in-store counters.
3.Have larger limits as there is no discount needed.
4.Customers can generate new ideas for new product development as feedback.
5.Very much appropriate for premium-priced products.
6.Planning systems that ensure the perfect products are available in the exact place and at the correct time.
7.Implementation systems can be competent at any scale.
8.Logistics vendors keep customer promises.
Entrepreneurs use both push and pull strategies to promote and sell their goods and services. Sellers also are on both ends to use push-and-pull strategies, with manufacturers, wholesalers, and distributors "pushing" products toward retailers and retailers pushing products to customers. Retailers also pull customers with various methods. In business using a combination push-pull approach is quite often, to attract potential customers.