Overall promotional strategies for your products or services can be separated into two types, a push strategy and a pull strategy. A push marketing strategy essentially takes the product or service directly to the face of the customer and “pushes” the product on them. Over 80% of people share content because of the headline! 90% of people only read content because of the headline. Learn 101 Hacks to create headlines that get shared & your content read! Manufacturers need consumers to buy their products and consumers need somewhere to buy products from. A push strategy is where the manufacturer concentrates their marketing effort on promoting their product to the next party in the distribution chain (retailer or wholesaler), to convince them to stock their products. A pull strategy involves the manufacturer promoting their products to the target market to create demand, so that retailers are forced into stocking the manufacturer's product.
Youa€™ll be joining the 130,000 Smart Insights members from 80 countries who trust our advice to Plan, Manage and Optimize their marketing. There are many advantages and disadvantages of both models, as it depends on your business. For a service business,A they often use pull strategies, for example, Intel, the computer chip company created 'Intel Inside' their brand ingredient programme by persuading manufacturers that their computers would have higher perceived value if they featured Intel in their own marketing, resulting in customers wanting to know if the PC they were buying included an Intel chip. Useful for those manufacturing or those selling low value items as a distribution who is likely to place bulk items.
The distributor may source alternative products (cheaper, faster delivery) once your product has established the market need. Instant payment as customers do not have credit facilities and pay online or in store at the checkout.
As a small business on a budget, they had a challenge competing for supermarket shelf space and needed customers talking about them, so the supermarkets would want to talk to them. In our free, illustrated guide to 15 classic planning models diagrams we explain what they are and give examples of why and how to apply them in business.
The term Promotion encompasses all of the various ways a business can communicate with customers and includes advertising, public relations and publicity (PR), sales promotion, direct mail, the internet and direct communications as well as sponsorship.
Is a paid-for, mostly non-personal form of communications and includes, TV, radio, newspaper & magazines, public transport, outdoor displays and exhibitions, billboards, brochures and catalogues and the internet. ABL uses mass media such as TV, radio, newspapers to promote brands and is used predominantly to create awareness. As the term suggests direct marketing communicates directly with a targeted customer group. To contact a customer through most but not all of the methods above a business needs to gather information on their customers. A data base can contain some of the information shown below and is a useful source of information to assist business in customer segmentation. The key to data marketing is to ensure that the information collected is as accurate as possible and that actual and potential customers are not bombarded with telephone calls and leaflets promoting products they clearly do not want! As we have discussed in this module before, how interested are you to buy from telesales or door to door sales people?
Although, there might not be a direct cost in placing the story in say a local or national newspaper there are hidden costs such as the time needed to write the story and research contacts in the media. Public Relations can be concerned with the management and control of the process of publicity. Public Relations is also concerned with the communication between an organisation and its key stakeholders or publics shown in the diagram. Supporting a special event or cause whether financially or materially (such as computers for schools given by Tesco) is called Sponsorship. Why do you think that so many top brands get involved in sponsorship of top sporting events?
Although the link below follows through to a blog the amount of money used in sports sponsorship is staggering. At the time of producing this module information there was debate whether BP could be allowed to remain a sponsor of the games after their oil leak tragedy in the USA. This is face-to-face communications with the buying customer by a representative of the company interested in selling products. The choice of promotional methods employed is influenced by a number of factors including; communication objectives, target audience needs, and promotional spend. So for example advertising has a high ability to reach a large number of potential customers, is expensive but moderately easy to control but the medium is not an effective way to deliver a personal message and offers little customer interaction. Most business will use a combination of some maybe all of the promotional methods we have discussed, some will spend a little others will spend a lot! Integrated Marketing Communications is concerned with co-ordinating all of the marketing communication tools available rather than use one in splendid isolation. There is an array of communications tools which can be used so it is vital to ensure that all are co-ordinated to achieve maximum effect. Jobber (2010 p 464) says something very similar, ‘Integrated Marketing Communications is the concept that companies co-ordinate their marketing communication tools to deliver a clear, consistent, credible and competitive message about the organization and its products. With a huge selection of marketing communications tools to chose from, many companies are moving away from using mass media advertising only and are employing a combination of promotional methods.
As with any academic subject, there is plenty of theory relating to marketing and this section on communications is no exception.
Shannon and Weaver in the late 1940s developed a linear process of communication looking at the source of a message and its transmission to another. For a message to be effective, the sender's encoding process must match up with the receiver's decoding process. The key is to ensure that effective communications cut out noise or barriers to communication from the process so that understanding of the message is spot on. In order to communicate effectively, a company needs to understand its target audience at the same time determining communication objectives.
There are competing views on the effectiveness of adverting and how it works; the strong theory of advertising and the weak theory of advertising.


The model importantly stresses that advertising is strong enough to increase consumer knowledge of a product and can change attitudes and buying behaviour.
Whether advertising and other communication methods too have the power to change attitudes and buying behaviour is very much open to debate, yet the AIDA model has been effectively used to design communication messages. Chose another well known brand that advertises on TV, or in magazines or newspapers and see if the AIDA model has been applied?
Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. Read the following scenario and then put together an Integrated Marketing Communications Plan for Sony’s new product as detailed in the Task instructions below. Sony is to launch a new multi functional handset incorporating a mobile telephone, a small TV, camera, video, and MP3 player.
With wireless technology this should represent one of the most up to date models in its class.
Despite its high threshold price, it is anticipated that the product will also appeal to the age group 16-22, as the price is within the ballpark figure for many games consoles, although relatively more expensive than a mobile phone with added features. Design is key, and Sony has shaped the new handset on the lines of an ipod, with colour and simplicity representing key features. Devise an outline marketing communications plan for the new Sony handset for each segment identified. Use all of the stages listed in the framework below or use the headings from the Jobber advertising framework in section 2. Affects decisions related to what, how, when, and where message will be said, as well as who will say it. Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.
Putting the plan into action can take some time and often businesses will employ an advertising or specialist agency to undertake this work for them. At the same time technology in tele-communications had developed to encompass the mobile phone plus digital and online television.
Jobber also points out the difference between Internet marketing and Digital marketing by stating that Internet Marketing is concerned with meeting customer needs through the utilisation of the internet only whereas as Digital Marketing includes the internet, mobile phones and digital TV.
Electronic commerce is often thought to simply refer to buying and selling using the internet, but as Jobber explores further it is also a provider of information. E-business is a term generally used to refer to both buy-side and sell side e-commerce and the use of Internet technologies throughout an organisation. There are a variety of forms of e-commerce from business to business to consumer to consumer. Permission based simply means that by supplying your contact details to a business you have given them permission to communicate with you. It is unlikely that the 5Is will knock the traditional marketing mix off its top spot, but it does offer food for thought.
The use of internet and other digital technologies has made marketers review the application of the marketing mix in a different way as illustrated above. The big change has been place…… top UK supermarkets use the internet as a virtual shopping experience, indeed some sites have virtual shopping baskets and check-outs! To conclude marketing is a big subject and we have touched on quite bit of it, yet there is much more to add! Personal selling is more used when dealing with expensive and risky goods in a industrial market with fewer, but larger sellers. Personal Selling and Sales Promotion are the primary promotion tools when using a Push Strategy. A promotion schema that calls for by using the sales force and trade promotion to push the product via the channel is called push schema.
This means that manufacturers not only need to persuade consumers to buy their products but also have to persuade retailers and wholesalers (the distribution chain) to stock their products.
Consumer demand pulls products from the manufacturer through the distribution chain and onto the customer hence the name pull strategy.
Either by the product being pushed towards customers or your customers pulling the product through the retail chain towards them. For instance, manufacturers A tend to use a push strategy for finding distributors to promote their products. Thorntona€™s Chocolates operate both strategies in different ways.They have an own label option and sell to specific retailers and package their goods using the retailersa€™ own brand packaging and they sell direct to customers via high street stores, online and in other retailers. Stormhoek wines went from selling 50,000 cases of wine a year in 2004 to 200,000 cases in 2006.
They were looking at changing their traditional business model from a push to a pull strategy. Wea€™ve looked through The Chartered Institute of Marketinga€™s EBSCO database containing access to thousands of journals, articles and other publications dated back to 1902 and ita€™s not there. Putting up a business is a crucial one, an effective marketing scheme must be done to make a business profitable.
It is a flexible form of communication which has the potential to reach a vast audience (depending on the medium used) yet is not always suitable if the business needs to communicate to a small, select group of customers. The suggestion here is that agencies can be offered commission from printers for using them to print direct mail, brochures and the like.
Until recently direct marketing included direct mail through the door and mail order catalogues, but due to its popularity direct marketing also encompasses telemarketing, direct response TV advertising (the red button during advertisements and the shopping channels!), door to door and personal selling and the internet.
Someone somewhere must be buying in this way as this type of promotion has seen a surge in popularity in recent years. Unlike the direct marketing techniques discussed above sales promotion can be employed as an incentive to all channel members.
Many companies will employ the services of a PR agency who will deal with press stories and maintain good links with the media.


This is the professional body for the UK public relations industry, providing PR training and events, PR news and research. Think of Max Clifford when some celebrity gets into trouble and how quick he takes control of the publicity.
Funds are made available to a recipient organisation in return for recognition of the benefactor’s generosity. The reputation of this top global company had certainly taken a hammering and the Olympic organisers were unsure whether the games should be associated with the company. Like all of the promotions techniques we have reviewed personal selling has its advantages and disadvantages. PR on the other hand offers high credibility with low costs at the expense of low control once the media gets the story.
Rather than advertise a new product or change in price on the TV only, the company will use a range of methods to ensure that the product is noticed even more by many more customers. As consumers ourselves we do not only seek product information from the TV, but look at the internet, read magazines, leaflets and brochures and speak to sales staff.
The consumers are pulling the product through the distribution channels as opposed to a push strategy which is employed to communicate to members of the distribution channel.
We shall briefly review some theories, concepts and models relating to communication starting with the communication process. In latter years Schramm (1962) added a feedback back loop to review whether the message had been received correctly.
However, there can be noise in the process which hinders or halts the message being understood. Then its needs to select the appropriate media and encode a message appropriate to the audience, decide on communication strategies, what promotional tools to use and how much money to spend.
Buy-side e-commerce refers to transactions to procure resources needed by an organisation from its suppliers.
Changes can be made on-line almost immediately through the flick of HTML, think of changing pricing through established distribution channels.
In the Western world we assume all have access to a computer yet in the developing world this is hardly the case. Advertising and Public Relation are the primary promotion tools when using a Pull Strategy. The manufacturer promotes the product to wholesalers, the wholesalers encourage retailers and the retailers promote to consumers. Our experts are helping students in their studies and they offer instant tutoring assistance giving their best practiced knowledge and spreading their world class education services through e-Learning program. Yeah, I know you didn’t want to hear that and you wanted a definitive answer, but they all work! My unending thirsts for knowledge and personal growth give me the drive to continual improve & perform. If you sell to merchants like supermarkets or major retailers, the challenge is often when your product establishes sufficient demand; the merchant may wish to replace your product with its own alternative. Via a blog (gapingvoid) a bottle of wine was offered to 100 bloggers in the UK and Ireland.
Planning must be given a huge consideration.Thus, whether its a push or pull strategy as long as it suits your type of business, you will indeed gain in profit. A business might contract an advertising agency to design and place advertisements on their behalf in the mass media.
His recent national story lines have included the girlfriend of married Chelsea footballer, John Terry and the death of Jade Goody.
Recognition can include the display of the sponsors’ name and logo and plenty of public recognition of the charitable act. The good bit is that it is very intensive and aimed at a small number of customers through meetings and regular updates; good relationships can be maintained and developed. The link below shows a developmental timeline of the internet from onset to what we know today! A co-ordinated, customer-focused and harmonised use of methods from billboards to product packaging, website to internet advertising, sponsorship and publicity, in-store publicity through sales staff and sales promotions, plus direct marketing, all reiterating the same message with the same logo and branding. If the message is not consistent, say McDonalds are promoting a 50p burger on the TV but in the store the sales-staff haven’t a clue what is happening, this is a little frustrating for the consumer and hardly professional for the company.
So a manufacturer such as Wella (still on hair care!) will use promotional tools to inform their wholesaler of product pricing or change.
Noise can include language and cultural differences - using the wrong language can certainly stop the message being understood! Consumers can seek information and buy products from all over the world at any time of the day. Sell-side e-commerce refers to the transactions involved with selling products to customers.
Segment profile to include, wealthy younger professionals age 23-30, looking for a multifunctional device, with good design and all features in one handset.
Research cited in Jobber 2010 suggests that on average people spend 29% of their time on the web. For example, if you sell shoes to retail stores then it might be in your best interest to goto a tradeshow and book some orders! Another advantage is that communications can be judged so much better on a face-to-face basis. You never know.a€™ It was a successful campaign and many bloggers started writing about the wine, resulting in the orders from supermarkets. Non-verbal communications such as body language and tone of voice, can offer clues as to how a meeting is proceeding.



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