...The push strategy is a promotion strategy that ‘pushes’ the message from a manufacturer towards resellers. These resellers will then push that message onwards as it communicates with the target consumers. It may involve using promotion mix such as the personal selling and trade promotion, and to push the product through different channels. The pull strategy is a promotion strategy that ‘pulls’ or 'draws' the attention of the target consumers. In a pull strategy, manufacturers usually use a promotion mix such as advertising and consumer promotions to induce final target consumers to buy the product. Consumers realize their needs from advertising and then seek the product from resellers; the resellers will then be ‘pulled’ to the manufacturer to order that products to satisfy their consumers’ needs. In the international market, no matter the company chooses push or pull strategy, it has depends on three factors which are the availability of advertising media, channel length and its level of control over distribution channels. Companies may be more inclined to adopt the pull strategy in countries with vast available media, because heavy advertising can attract and pull end users, and also it can speed up the adoption rate in new markets. Channel length also is another consideration. In some countries such as Japan which have long channels, so pull strategy is advisable by aiming the promotion directly at the end users. In most of cases, because of gaining overseas intermediaries’...
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..."Push or Pull"? Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull". Push A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes. A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools. Pull A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. A good example of a pull is the heavy advertising and promotion of children's’ toys – mainly on television. Consider the recent BBC promotional campaign for its...
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...differentiation value includes Coracle’s increase in chemical savings. Coracle reduces the need for additional chlorine, shock treatments and enzymes, thus reducing pool owners’ annual chemical cost by 20% to 30% (average of 25%). ClearBlu reduces annual chemical cost by 15%, thus the increase in savings by Coracle is 10% (25%- 15%). The annual chemical cost (excluding clarifiers) is $300. Calculation of Coracle’s annual EVC: $56.25+ 0.1x $300= $86.25. Coracle, being a new brand should first adopt a push strategy since there is low brand loyalty and low brand awareness. This will generate exposure and encourage distributors to stock up on Coracle. Only 25% of consumers understand and use clarifiers regularly. This shows that there is low involvement in purchasing decision and perhaps an impulse item as a residential clarifier. And thus a push strategy is a good way to promote the product. However, since product benefits are not well understood by consumers, Soren can also adopt a pull strategy in communicating the actual...
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...retail outlets in grocery stores, mass merchandise stores, and drug stores. As for the weaknesses, the primary limitation of the brand is the lack of awareness of the multiple cleaning purposes of the product. The brand and the product are both widely considered to be rather boring and unappealing, and to make matters worse the product has not undergone any changes in the past century. The category and in turn the brand are experiencing increasing selling prices, low traffic and low turnover. Lastly, there is an extremely low recollection among consumers when it comes to the advertising of the brand irrespective of the medium. 2. Analyze the effectiveness of past RBS consumer and trade promotional events. How have the promotion strategies impacted sales volumes? What kind of return on investment is the company getting for consumer products and trade promotions? Based on the information provided in the case and specifically in Exhibits 7,8, and 9, we can see that the consumer promotions are close to 30% less effective in terms...
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...Push Strategy: Push strategy is where companies forecast demand before ordering based on the willing buyers and also the goods doesn’t runout unexpectedly. For example winter jackets are required by retailers during the end of summer or during start of fall and winter. Companies can predict in their supply chain as they know what will be needed long before their demand actually arrives. So the main disadvantage in Push system is it’s purely based on forecast which is a guess. For example Billions are spent in US on computers and software’s but most of the time demand and forecast differed. So if forecast goes wrong there will be excess of investments and profits will decrease. Sometimes we may runout of inventory and lose customer loyalty. Pull Strategy: Pull strategy is the one which is based on demand data. This is based on the actual consumption at stores and also forecast rather than predicting sales. For example Custom computers are build by direct computer seller only when the order is received from consumer. Cloud technologies these days are providing daily consumer demand for generating forecast. Based on this strategy, a company can manufacture goods based on daily demand and reduce production of goods which are moving slowly so that inventory maintenance cost is reduced for goods which are not in demand. The disadvantage of this strategy is that sometimes we may runout of inventory if demand increases and if we are unable to increase production. Aggregate Forecast: ...
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...inaccurate accounting practice. 1.1 Advantage and Disadvantage of hold inventory First advantage is improving customer service. By hold inventory can increase investment in inventory may result in a higher level of customer service and able to meet and anticipate customer demand. It also prompts and precise customer order upon request. Second advantage of hold inventory is economies of scale. Take advantage of per unit price reduction for purchasing in large quantity and enjoy economies of production as greater plant capacity and lower per unit manufacturing costs. The following is disadvantage of inventory such as consume space, higher order and carrying costs, tax depending on demand and market pattern, difficult to predict. 1.2 Push inventory strategy Push system involves predicting inventory requirements, to reach customer demand. Company has to forecast what goods clients will buy along with will determine the quantity of goods to buy. The manufacturing will produce enough...
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...related to the central decisions in the case. Your analysis was clearly linked to facts from the case. (2 Points Earned) Your analysis was unclear or was not supported by facts from the case. (1 Point Earned) Substantive omissions were made in your analysis. (0 Points Earned) B. Past Promotional Events (2 Points Possible) Analyze the effectiveness of past RBS consumer and trade promotions. How have the promotional strategies impacted sales volume? What kind of return on investment is the company getting for consumer promotions and trade promotions? You provided a well-reasoned financial analysis that was supported by facts from the case. (2 Points Earned) Your analysis was incomplete or was not supported by facts from the case. (1 Point Earned) Substantive omissions were made in your analysis. (0 Points Earned) C. Push vs. Pull (2 Points Possible) Compare the relative merits of a push vs. a pull strategy for the marketing a low-involvement, lowprice grocery item in a mature market setting. You clearly identified the relevant strategic considerations of the two strategies case and provided a well-reasoned analysis based on those considerations. (2 Points Earned) You were not clear in your identification of the relevant strategic considerations. Your analysis was incomplete or was not supported by facts from the case. (1 Point Earned) Substantive omissions were made in your analysis. (0 Points Earned) D. Recommendation (2 Points Possible) What is your recommendation for how Regnante...
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...of a distribution strategy without the coordination of other components of the marketing mix tends to produce a strategy without harmony. A disjointed marketing strategy will not reach the success levels that were expected. Organizations have come to realise the impact of distribution management as a source of competitive advantage with companies like Delta, Lobels and Bakers Inn employing distribution managers and personnel. This is because it has become more difficult to find a unique source of competitive advantage in an era where it is easy to copy strategies and products. Marketing managers are now looking to coordinate the promotion strategy with the distribution strategy, specifically push or pull strategy in relation to distribution strategies that include, intensive, selective or exclusive. Now the combination of these strategies is most important in an environment where the retailer and other relevant intermediaries are faced with so many product options to stock on their floor space. It then becomes apparent that the marketing manger that is able to gain the best and most floor space using one strategy, and persuade end customers to seek out and purchase the organization’s products in another strategy, becomes successful in gaining market share and meeting their objectives. This paper will define distribution management and its components. It will look at the impact of the Bullwhip Effect or the Forrester Effect, the push and pull strategies and the convergence...
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...A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase. "Taking the product to the customer" EXAMPLES OF PUSH TACTICS * Trade show promotions to encourage retailer demand * Direct selling to customers in showrooms or face to face * Negotiation with retailers to stock your product * Efficient supply chain allowing retailers an efficient supply * Packaging design to encourage purchase * Point of sale displays 2. PULL STRATEGY A pull strategy involves motivating customers to seek out your brand in an active process. "Getting the customer to come to you" EXAMPLES OF PULL TACTICS * Advertising and mass media promotion * Word of mouth referrals * Customer relationship management * Sales promotions and discounts The origin of these two terms refers to the supply chain and how the demand for the product is generated. The term 'push strategy' describes the work a manufacturer of a product needs to perform to get the product to the customer. This may involve setting up distribution channels and persuading middle men and retailers to stock your product. The push technique can work particularly well for lower value items such as fast moving consumer goods (FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and are ready to make their decision on the spot. This term now broadly encompasses most direct promotional...
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...Furniture Supply Chain: With advancement in technology, many companies have initially moved away from push strategy to pull strategy. But now, most of the business which aims for customer satisfaction follows strategy (push-pull or pull-push) and in particular furniture industry which does business through retail outlets follows "Pull-Push" model aiming to provide large variety of customizable products. In a Pull-Push strategy, some stages of the supply chain, typically the production is based on pull strategy while the distribution activities are operated in a push manner (Simchi-Levi, 2010). Basic assumptions made in designing furniture business via retail outlets supply chain are, * Considering only the key raw materials such as wood, steel, cushion and designing materials. Other raw materials which can also be essential in furniture industry are plastics, adhesives etc. * Retailers will reassemble the furniture packs at the customer end or the customers can do it on their own as they are delivered flat packs which are easy to reassemble. 1. Furniture makers upon receiving the orders from distributors (pull strategy) will request Tier1 suppliers for fabrics. 2. Tier1 suppliers will receive goods from Tier2 suppliers. Example Wooden mills will get the wood materials from forest and reshape it accordingly. Similarly Lathe shop will receive steels from the steel manufacturers and shape it according to the furniture maker's requirements and all these...
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...Week 4 Reflection MKT/421 Week Four Reflection Once again, Team C has had another week full of different information, which is critical to each persons’ major. In order to ensure that each member understood important parts of week four, each member chose an objective and wrote about it. Objectives which were discussed among team members of Team C include the channel of distribution, push and pull strategies, and direct and indirect distribution strategies. Channels of Distribution Channels of distribution are any series of firms or individuals who participate in the flow of products form producer to final user or consumer (Perreault, Cannon, & McCarthy, 2011, p. 284). The flow of products between the firm, intermediaries, and consumers is a large part of the overall profit margin of a firm that requires marketing teams to dedicate substantial time and planning towards choosing the appropriate channels. Distribution channels are a firms way in which they can get products to from manufacture to intermediaries and consumers in a direct or indirect manner that revolve around the Place within the marketing mix. Direct and Indirect Distribution The direct method of distribution channels involves going directly to the consumer. Firms bypass the intermediary (wholesaler) and issue the product to the consumer at the wholesaler’s price. This method is most often used for new...
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...DIFFERENCE BETWEEN SELLING AND MARKETING In general we use „marketing‟ and „selling‟ as synonyms but there is a substantial difference between both the concepts. It is necessary to understand the differences between them for a successful marketing manager. Selling has a product focus and mostly producer driven. It is the action part of marketing only and has short – term goal of achieving market share. The emphasis is on price variation for closing the sale where the objective can be stated, as “I must somehow sell the product”. This short – term focus does not consider a prudential planning for building up the brand in the market place and winning competi¬tive advantage through a high loyal set of cus¬tomers. The end means of any sales activity is maximizing profits through sales maximization. When the focus is on selling, the businessman thinks that after production has been completed the task of the sales force starts. It is also the task of the sales department to sell whatever the production department has manufactured. Ag¬gressive sales methods are justified to meet this goal and customer‟s actual needs and satisfaction are taken for granted. Selling converts the product in to cash for the company in the short run. Marketing as a concept and approach is much wider than selling and is also dynamic as the fo¬cus is on the customer rather than the product. While selling revolves around the needs and in¬terest of the manufacturer or marketer, market¬ing revolves around that...
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...distribution of resources.” (…..) This system could have very well begun what we call logistics management in today’s modern time. Logistics has rapidly evolved over the past years. A person can’t talk about logistics without understanding the management structure of logistics which is the push and pull system because companies struggle trying to figure out which strategy to use. Push planning is generally supply driven and is a successful approach when a company owns market share and controls demand for its products. A push strategy combines the resources of retailers, wholesalers and manufacturers to create consumer demand for a product or product line. With this push strategy each phase of the supply chain pushes the merchandise forward to the next step in the supply chain. The manufacturer pushes the merchandise to wholesalers, the wholesalers then pushes the merchandise down to the retailers, and the retailer pushes the merchandise down to the consumers. This is pushed to consumers through the form of a discounted sales pricing. Since the push strategy's focus on value and their frequent use of rebates and other incentives they can be successful in overcoming consumer pricing advances. “A push may also be effective when the consumer is unfamiliar with...
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...& overall managerial efficiency operates in complex multicultural environments. A brand’s strategy should be based on company goals. Having a clear and concise brand strategy leads to stronger overall brand. The way people perceive your product, and how much they are willing to pay for it helps define how a brand can move around and across borders, as word of mouth and social networks grow. At Meme Food and Gas, we want to market our stores for global appeal. We want to be able to open stores that perform well in America as well as in Japan and other countries. Our commitment at Meme is that it becomes the communities ‘one stop shop.’ Though the gas is the main reason for stopping, we can quench thirst and satisfy hunger or even be the miniature addiction to someone’s sweet tooth. We could advertise with a logo of a gas can, but we wouldn’t want to limit the vision strictly to auto services, so sticking with our name: Meme Food and Gas, seems to be the best idea for now. A nice motto that relates to our customers would involve everyday commitment, to provide that feeling that you get when you visit your grandmother every Sunday, for example. You don’t feel just right until you make that trip. Visits to Meme become part of the norm, everyday life. When pricing the main product of gas at a convenience store, there are a couple of ideas of ways to go about implementing a strategy....
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...Branding, Pricing, and Distribution Branding, Pricing, and Distribution In continuing with Green Clean’s marketing plan, the following paper will elaborate and various issues. Branding strategy will examine domestic and global STRATEGIES along with an optimal pricing strategy. Green Clean will develop and implement various distribution channels this includes an e-commerce website. It will also explain its rational on its combination push and pull marketing strategy. Last, it will attempt to explain how its distribution strategy fits the products and services it provides. Branding In recent years there has been an eruption of new brands entering the market every day. It seems obvious that branding is a critical part of marketing. Companies must compete to secure a fragment of their consumers mind before another competitor does. Brands convey information to their customers, in particular, quality, company production, and owner ship. For example, when Acer places its name on a laptop, monitor, or tablet it is expressing its ownership of the product and its pride in developing it (Iacobucci, 2012). For the company, brands develop fidelity, assist in segmentation, positioning, and targeting. Green Clean Incorporated (GCI) has developed a logo that they hope will become familiar to everyone around the world in time. It both serves to identify itself but also conveys the purpose of its mission and its products. The logo and color will engage the customers both verbally and visually...
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