Do you know what are push and pull strategies ?
Push strategy
A push strategy involves the manufacturer using its sales force and trade promotion money to
induce intermediaries to carry, promote, and sell the product to end users. Push strategy is appropriate where there is low brand loyalty in a category,
brand choice is made in the store, the product is an impulse item, and product benefits are
well understood.
Pull strategy
A pull strategy involves the manufacturer using advertising and promotion to induce consumers
to ask intermediaries for the product, thus inducing the intermediaries to order it. Pull strategy
is appropriate when there is high brand loyalty and high involvement in the category, when people perceive differ-ences between brands, and when people choose the brand before they go to the store. Companies in the same industry may differ in their emphasis on push or pull.
Retailing
Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing.
CHANNEL MANAGEMENT DECISIONS
1. Selecting Channel Members
2. Training Channel Members
3. Motivating Channel Members
4. Evaluating Channel Members
5. Modifying Channel Arrangements
Promotion
Promotion is communication about an organization and its products that is intended to inform, persuade, or remind target market members
Promotion’s role is to communicate with individuals, groups, or organisations to directly or indirectly facilitate exchanges by informing and persuading one or more of the audiences to accept an organisation’s products.
A promotion mix (sometimes called a marketing communications mix) is the particular combination of promotional methods a firm uses to reach a target market.
Marketers can use several promotional methods to communicate with individuals, groups, and organizations.
Advertising, personal selling, sales promotion, and publicity are the four major elements in an
organization’s promotion mix.
Advertising
Advertising- Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service.
Sales promotion activities may be used singly or in combination, both offensively and defensively, to achieve one goal or a set of goals.
Sales Promotion Methods
1. A consumer sales promotion method attracts consumers to particular retail stores and motivates
them to purchase certain new or established products.
2. A trade sales promotion method encourages wholesalers and retailers to stock and actively
promote a manufacturer’s products.
3 . A number of factors enter into marketing decisions about which and how many sales promotion
methods to use.
Rebates, Coupons, Samples, Premiums, Frequent-User Incentives, Point-of-Purchase Displays, Trade Shows, Buying Allowances
MAJOR DECISIONS IN SALES PROMOTION
1. Establish its objectives,
2. Select the tools,
3. Develop the program,
4. Pretest the program,
5. Implement and control it, and
6. Evaluate the results
Direct marketing
has been defined by the Institute of Direct Marketing as:
The planned recording, analysis and tracking of customer behavior to develop a relational
marketing strategies
Direct marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships; Direct communications with carefully targeted individual consumers to obtain an immediate response.
Benefits of direct marketing
The advertiser can target a promotional message down to an individual level, and where possible personalize the message. There are a large number of mailing databases available that allow businesses to send direct mailing to potential customers based on household income, interests, occupation and other variables
Businesses can first test the responsiveness of direct mailing (by sending out a test mailing to a small, representative sample) before committing to the more significant cost of a larger campaign
Direct mailing campaigns are less visible to competitors – it is therefore possible to be more
creative, for longer
CHANNELS FOR DIRECT MARKETING
Face to Face Selling
Direct Mail
Catalog Marketing
Telemarketing
Kiosk marketing
E-marketing
Personal Selling
Personal selling is paid personal communication that attempts to inform customers and persuade them to purchase products or services.
how personal selling facilitates marketers :-
The greatest freedom to adjust a message to satisfy customers informational needs, dynamic.
Most precision, enabling marketers to focus on most promising leads. vs. advertising, publicity and sales promotion
Give more information
Two way flow of information, interactivity.
Discover the strengths and weaknesses of new products and pass this information on to the
marketing department.
Highest cost. Businesses spend more on personal selling than on any other form of promotional mix.
Goals range from
finding prospects
convincing prospects to buy
keeping customers satisfied—help them pass the word along
Advantages:
Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention
The sales message can be customized to meet the needs of the customer
The two-way nature of the sales process allows the sales team to respond directly and promptly to customer questions and concerns
Personal selling is a good way of getting across large amounts of technical or other complex product information
The face-to-face sales meeting gives the sales force chance to demonstrate the product
Frequent meetings between sales force and customer provide an opportunity to build good long-term Relationships
Disadvantages:
The main disadvantage of personal selling is the cost of employing a sales force. Sales people are
expensive. In addition to the basic pay package, a business needs to provide incentives to achieve sales (typically this is based on commission and/or bonus arrangements) and the equipment to make sales calls (car, travel and subsistence costs, mobile phone etc).
In addition, a sales person can only call on one customer at a time. This is not a cost-effective way of reaching a large audience
Process of Personal Selling:
PROSPECTING
PRE-APPROACH
APPROACH
SALES PRESENTATION
HANDLING OBJECTIONS
CLOSING SALE
FOLLOW UP
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