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Promotion Planning And Techniques
FACTORS ESSENTIAL TO THE SUCCESS OF PUSH STRATEGY
- HIGH QUALITY PRODUCT: The manufacturer must have a high quality product with
unique product features and clear unique selling proposition (U.S.P). Salespersons will
attract and hold the prospective customer’s attention and interest to secure a sale, especially
through product demonstration. - PRICING OF PRODUCT MUST HAVE SUFFICIENT MARGIN FOR MIDDLEMAN:
The manufacturer should have a relatively high-priced product because middlemen must be
given adequate or large margins to justify the extra efforts spent on the product. Salesmen’s
calls are expensive thus high priced of product or broad line of merchandise with adequate
large average order size will be able to absorb the cost of the push strategies. - THE MARKETING FIRM MUST PROVIDE ADEQUATE INCENTIVE FOR
MIDDLEMEN AND SALESPERSONS: The manufacturer must provide sufficient economic
incentives to both middlemen and their salesmen. Resellers will usually expect a larger-
than-normal margin on products because of their expected aggressive push or input into
the promotion. Manufacturers should stimulate wholesale and retail salesmen by offering
them extra prizes like – PUSH MONEY, opportunities to win prizes in contests or valuable
items. The push strategy is highly expensive, a manufacturer who uses this approach seldom
does advertising because little fund will be left for advertising.
PULL PROMOTION STRATEGY
A pull strategy, also be called SUCTION strategy uses extensive advertising to generate consumer
demand so that the consumer will demand and purchase the product from the retailer while the retailer
buys from the wholesaler and the wholesaler buys from the manufacturer. The product is pulled through
the marketing channel by the consumer’s demand generated from the advertisement. This approach
increases the willingness of middlemen to stock the product since little time and effort will be needed to
sell the product. Pull strategies are characterized by, intensive consumer advertising and huge advertising
expenditures. Salesmen become order takers instead of order generators and may not attract heavy
remuneration or compensation.
Personal selling activities in all stages of the channel are less emphasized; middlemen are willing to accept
lower trade margins because they need little time and selling expenses to sell the product. Also, retail
prices tend to be relatively low but a higher sales turnover rates could be achieved by middlemen to
generate adequate margin. The reliance on intensive consumer advertising which carries large investment
has made this strategy unattractive to small companies.
PUSH-PULL STRATEGY
Manufacturers of consumer product use the push-pull or combination strategy to sell their products.
Varied ratio of push to pull is adopted, depending on the company. This strategy demands extensive
promotion expenditure which can only be available to very big manufacturers.