push and pull strategy
Muhamad Riduan Bin Abd Rahim
Answer:
Push
Examples of companies are
a) For example, Motorola use a push strategy to make arrangements with large mobile phone providers, such as Sprint, Verizon and AT&T, who can advertise phones directly to consumers. Businesses can promote products to wholesalers and vendors through trade shows, contacting local retailers and providing attractive packaging and point of sale displays to convince consumers to buy.
b) Second is Nokia, Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies like Nokia. For example, Nokia offering subsidies on the handsets to encourage retailers to sell higher volumes.
Pros:
1. To develop this kind of positioning, all one has to do is look at the competition’s literature and come up with positioning that seems sufficiently different from the alternatives. Potentially saves time because it can be done without speaking to customers. Maybe a good first step in developing a go-to-market strategy.
2. Using a push strategy usually costs less money and draws more business, because companies negotiate with large vendors. For example, a producer selling a product to Walmart can receive most of its business from a single retail outlet, allowing the business to focus on its product manufacturing and supply chain while worrying less about its relationship with customers.
Cons:
1. The competition may have it all wrong and have no idea about what customers really want, so trying to work around the competition’s messaging may be pointless, since they all have it wrong anyways-and company probably do too since the company haven’t spoken to any customers
2. Push strategies can rely too heavily upon large vendors, which limit a business' pricing and flexibility when selling a product. For example, a large producer like Walmart may dictate the price at which the business can sell its
Answer:
Push
Examples of companies are
a) For example, Motorola use a push strategy to make arrangements with large mobile phone providers, such as Sprint, Verizon and AT&T, who can advertise phones directly to consumers. Businesses can promote products to wholesalers and vendors through trade shows, contacting local retailers and providing attractive packaging and point of sale displays to convince consumers to buy.
b) Second is Nokia, Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies like Nokia. For example, Nokia offering subsidies on the handsets to encourage retailers to sell higher volumes.
Pros:
1. To develop this kind of positioning, all one has to do is look at the competition’s literature and come up with positioning that seems sufficiently different from the alternatives. Potentially saves time because it can be done without speaking to customers. Maybe a good first step in developing a go-to-market strategy.
2. Using a push strategy usually costs less money and draws more business, because companies negotiate with large vendors. For example, a producer selling a product to Walmart can receive most of its business from a single retail outlet, allowing the business to focus on its product manufacturing and supply chain while worrying less about its relationship with customers.
Cons:
1. The competition may have it all wrong and have no idea about what customers really want, so trying to work around the competition’s messaging may be pointless, since they all have it wrong anyways-and company probably do too since the company haven’t spoken to any customers
2. Push strategies can rely too heavily upon large vendors, which limit a business' pricing and flexibility when selling a product. For example, a large producer like Walmart may dictate the price at which the business can sell its