Sales promotion decisions are significantly affected by whether the company decides to do “pull or push strategies” to accomplish its objectives. Such a decision may require a little or a lot of cooperation from resellers. The requirements to implement one strategy might be little more than to just stock the product by the retailers.
The other strategy may demand more participation from resellers such as the ability to explain to the consumers as to how a product works.
In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and consumer promotions such as consumer contests and sweepstakes, rebates, coupons, free samples, consumer premiums, etc are used. If this strategy is also chosen to include advertising, then, there are large advertising expenditures.
The objective of such promotional efforts would be to create sufficient consumer demand to pull the product through the channels, that is the consumers are encouraged to demand the product from retailers who in torn place orders with wholesaler or manufacturer to meet the consumer demand.
Bajaj Auto Ltd. offered a scheme of taking home a scooter at Rs 999 was a sales promotional offer communicated through effective advertising and was essentially a pull strategy.
This strategy may require little promotional efforts from the resellers except to stock input the product on shelves.
A pull strategy is appropriate when
- The product demand as high.
- It is possible to differentiate the product on the basis of real or emotional features.
- Brand consumers show high degree of involvement in the product purchase,
- There is reasonably high brand loyalty and
- Consumers make brand choice decision before they go to the store.