modified strategy

8/7/2019 modified strategy

1/19

Promotional MixPromotional Mix

StrategiesStrategies

Push versus PullPush versus Pull

and Moreand More


2/19

To gainTo gain trialtrial among nonusers of a brand/service.among nonusers of a brand/service.

To increaseTo increase repeat purchaserepeat purchase and/or multipleand/or multiple

purchases.purchases.

To expand brand usage by suggestingTo expand brand usage by suggesting newnewusesuses..

To defend share againstTo defend share against competitioncompetition..

ToTo supportsupport advertising campaign, theme, image.advertising campaign, theme, image.

ToTo increase distributionincrease distribution and/or dealer, retailerand/or dealer, retailer

cooperation.cooperation.

ShortShort--term vs. longterm vs. long--term goals and relationships.term goals and relationships.

Sales Promotion:Sales Promotion:


3/19


Creating an immediate sale isCreating an immediate sale isthe primary objective.the primary objective.

Extra incentives to enhance movementExtra incentives to enhance movementand sales. Helps the selling process.and sales. Helps the selling process.

Direct inducement that offers an extraDirect inducement that offers an extra

value or incentive to sales force,value or incentive to sales force,distributors or the ultimate consumer.distributors or the ultimate consumer.

Stimulates Dealer and Channel Involvement.Stimulates Dealer and Channel Involvement.


4/19


Increasingly, the gimmicks areIncreasingly, the gimmicks are

going away. More scanning data.going away. More scanning data.

Step up to the challenge of real, brand buildingStep up to the challenge of real, brand building

value, the kind that sparks genuine consumervalue, the kind that sparks genuine consumer

and retailer interest.and retailer interest.

Contribute to marketing goals.Contribute to marketing goals.

More Events and Product LicensingMore Events and Product Licensing


5/19

InfluencesInfluences

Push StrategyPush Strategycalls for using thecalls for using the

sales force and tradesales force and trade

promotion.promotion.

Pull StrategyPull Strategycalls for spending oncalls for spending onadvertising and salesadvertising and sales

promotion to buildpromotion to build

consumer demand.consumer demand.


6/19

Push Strategy:Push Strategy:

Persuade wholesalers and retailers to carryPersuade wholesalers and retailers to carry

brands.brands.

Give a brand shelf space.Give a brand shelf space.

Promote a brand in coop advertising.Promote a brand in coop advertising.

Producer Wholesaler Retailer Customer


7/19

Push Strategy:Push Strategy: Be careful of those big displays at the end of theBe careful of those big displays at the end of the

aisles.aisles.

End Aisle Displays. End Caps.End Aisle Displays. End Caps.

Look at the prices.Look at the prices. Only about 40% isOnly about 40% isactually on sale.actually on sale.

Because they are so bright, big and visual, weBecause they are so bright, big and visual, we

feel its on sale.feel its on sale.



8/19

Pull Strategy:Pull Strategy:

Entice customers to try a new product.Entice customers to try a new product.

Lure customers from competitive products.Lure customers from competitive products.

Hold and reward loyal customers.Hold and reward loyal customers.



9/19

Push Tools:Push Tools:

DealsDeals-- Allowances, PriceAllowances, Price--offs and Discountsoffs and Discounts

Displays and Point of PurchaseDisplays and Point of Purchase

Dealer PremiumsDealer Premiums

Samples and Free GoodsSamples and Free Goods

BuyBuy--Back GuaranteesBack Guarantees

Cooperative AdvertisingCooperative Advertising

Advertising MaterialsAdvertising Materials Push Money (Spiffs)Push Money (Spiffs)

Dealer Meetings and ContestsDealer Meetings and Contests

Specialty Advertising ItemsSpecialty Advertising Items


10/19


11/19

Pull Tools:Pull Tools:

SamplingSampling------inin--store, events, newspaper, instore, events, newspaper, in--packpack

Cents Off Promotions and Coupons (Cents Off Promotions and Coupons (--2%)2%)

Continuity/Frequency and Loyalty ProgramsContinuity/Frequency and Loyalty Programs

PremiumsPremiums

SLO (SelfSLO (Self--Liquidating Offers/Premiums)Liquidating Offers/Premiums)

Point of Purchase DisplaysPoint of Purchase Displays

Contests, Games and SweepstakesContests, Games and Sweepstakes Rebates and Cash refundsRebates and Cash refunds

FSIs (FreeFSIs (Free--Standing Inserts)Standing Inserts) 80% of distribution80% of distribution

Advertising Specialty ItemsAdvertising Specialty Items


12/19


13/19

Hints and Comments:Hints and Comments: Slotting Allowances: The feesSlotting Allowances: The fees

retailers collect fromretailers collect frommanufacturers to ensure shelfmanufacturers to ensure shelfspace for new products make thespace for new products make themarketplace more efficient, amarketplace more efficient, aYale/Cornell study found.Yale/Cornell study found.

"We find that when retailers"We find that when retailersperceive that a product is likely toperceive that a product is likely tobe a sure hit, they don't seem tobe a sure hit, they don't seem toask for slotting allowances ...ask for slotting allowances ...manufacturers don't offer slottingmanufacturers don't offer slottingallowances when they perceive theallowances when they perceive theproduct to be a sure dud.product to be a sure dud.

Progressive GrocerProgressive Grocer (4/05)(4/05)


14/19

Questions:Questions:

Are distributing drug samplesAre distributing drug samplesto doctors a push or a pullto doctors a push or a pullstrategy?strategy?

Incentives from HBO to hotelsIncentives from HBO to hotelsand motels. Push or Pull?and motels. Push or Pull?

Beer.com produced 50K bottleBeer.com produced 50K bottlecaps featuring its name and leftcaps featuring its name and left

them on bars during spring andthem on bars during spring andwinter breaks. Push or Pull?winter breaks. Push or Pull?


15/19

Question:Question:WalWal--Mart TV network (in store)Mart TV network (in store) 42 plasma screens42 plasma screens

A smart buy or a goodwill,A smart buy or a goodwill,

defensive gesture?defensive gesture? Sets are silent.Sets are silent.

InIn--store advertising system.store advertising system.


16/19

Sales promotion budgets are usuallySales promotion budgets are usuallydivided into three categories:divided into three categories:

1. Consumer advertising1. Consumer advertising

2. Consumer promotion2. Consumer promotion

3. Trade promotion3. Trade promotion

Companies in same industry can putCompanies in same industry can putemphasis onemphasis on Push or PullPush or Pull..

Summary:Summary:


17/19

Push strategyPush strategy is appropriate withis appropriate withlow brand awarenesslow brand awareness in a categoryin a categoryand brand choice is made inand brand choice is made in storestore..

Can be an impulse purchase andCan be an impulse purchase andproduct benefits are understood.product benefits are understood.

Pull strategyPull strategy works best withworks best with highhigh

brand awarenessbrand awareness and loyalty, or highand loyalty, or highinvolvement in category andinvolvement in category andcustomerscustomers look for productlook for productdifferencesdifferences..

Summary:Summary:


18/19

Promotional MixPromotional Mix

StrategiesStrategies

Push versus PullPush versus Pull

and Moreand More


19/19

Hints and Comments:Hints and Comments:

WalWal--Mart Touts InMart Touts In--Store TVStore TV

Research claims advertising on itsResearch claims advertising on itsinin--store marketing network, withstore marketing network, withPremier Retail Networks, is morePremier Retail Networks, is moreefficient than Cable and Network TVefficient than Cable and Network TVadvertising in generating sales. Aadvertising in generating sales. Asurvey of TV watchers conducted bysurvey of TV watchers conducted bythethe TNSTNS Media & EntertainmentMedia & Entertainment

Group found that 15% of viewersGroup found that 15% of viewerspurchased advertised productspurchased advertised productsimmediately after seeing them onimmediately after seeing them onan inan in--store broadcast.store broadcast.

MediaPostMediaPost CommunicationsCommunications 11/30/0511/30/05

modified strategy

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