Marketing and selling in favourable economic
conditions:
Push vs pull marketing
Prasanna PERERA - Marketing and Management
Consultant, Chartered Marketer, CIM UK
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Prasanna
Perera |
Push and Pull Marketing are strategies employed to increase sales
revenue and market share. However, are marketers really balancing the
two strategies or are they lop-sided? My endeavour is to address this
aspect in this brief article.
Push marketing
Is targeted at the trade or distribution intermediaries, with the
objective of "pushing" products into the distribution pipeline.
Distribution intermediaries include distributors, wholesalers,
retailers. Push marketing initiatives include quantity discounts, free
issues, extended credit facilities, intermediary promotions,
merchandising and display competitions, marketing collaterals (t'
shirts, caps) to name a few.
Pull marketing
Is targeted at the end-user and consumer, with the objective of
"pulling" products out of dealer shelves. Pull marketing initiatives
include advertising, consumer promotions, discounts, loyalty programmes,
marketing collaterals to name a few.
Dangers of overdoing push marketing
Many commercial organizations are sponsoring foreign trips of
intermediaries. Initially destinations were in Asia but now expansions
are spoken about such as Europe, USA and Australia.
Do these foreign trips really make these intermediaries loyal to
their sponsoring organizations? What happens to loyalty when all players
are engaging in providing foreign trips? These are vital questions that
marketing and sales professionals should answer. Are organizations
vesting valuable resources on these foreign trips of intermediaries? Are
organizations better off strengthening end-user relationships, rather
than only intermediary relationships? I am not advocating a complete
shift from Push Marketing to Pull Marketing. My point of view is that
marketers should not go overboard with intermediary promotions, but
rather balance the push and the pull.
Organizations are also spending substantial amounts of money on
Dealer Conventions.
Do these conventions deliver the desired results in the long term?
Are there proper mechanisms in place to evaluate the post convention
effectiveness? Marketing accountability calls for answers to these
questions.
Pull marketing
The ultimate acid test in marketing is whether customers and
end-users demand your brand by name! This can only be achieved through
well planned and executed Pull Marketing strategies.
With the growth of the Modern Trade (Supermarkets) and other self -
service stores, building brand loyalty and preference amongst end-users
becomes a priority. At the end of the day, the end-user calls the shots,
however much intermediaries and other opinions leaders try to influence
them.
The long term impact of advertising should not be forgotten, both
on-line and off-line.
Advertising is needed to build and position product and service
brands. Consumer promotions to increase brand usage and loyalty are also
needed.
Even in the case of Pull Marketing, accountability for budgets is
required. All advertising and consumer promotion campaigns need to be
evaluated against specific objectives. Pre-testing of advertising is
required, although this is not really done adequately in Sri Lanka.
Outdoor advertising such as hoardings, wall paintings and shop boards
should be carried out prudently. Outdoor advertising has limitations,
since it is location specific.
Outdoor advertising to my mind, will always be a support medium to
media advertising and consumer promotions.
Social media advertising is something that Sri Lankan corporate
should pay more attention to. Why? social media is an ideal platform to
engage consumers and end-users emotionally.
Further, it is extremely cost effective and measurable. Presently,
there are over one million Facebook accounts in Sri Lanka and growing
rapidly.
There are also well developed websites that offer successful audience
engagement not to mention search engine marketing and advertising.
What is the Solution? Push or Pull or Both?
My recommendation is to strike a balance between the two. But for
this to happen, a reconciliation between Marketing and Sales personnel
is required. I have personally observed a growing rift between Marketing
and Sales.
Sales personnel in their haste to achieve short term targets, spoil
the intermediaries, by expenditure which is often not justified.
Marketers on the other hand are not assertive enough to get the
"Pull" going. It is about time that "Integrated Marketing and Sales" is
practiced, for the betterment of the profession.
Short term thinking should stop and be balanced with the medium and
long term.
Top Management needs to take note and step in to get the balance
right between Push and Pull Marketing.
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