Posted in Marketing and Strategy Terms, Total Reads: 1855
Definition: Promotional Strategy
Promotion for any product or service is essential for any company. It is because only through promotion people would come to know about the product. Only after knowing about the product they consider purchasing. All the promotional strategies can be classified under two categories – Push and Pull.
In push strategy promotional activities are done for the distributors, wholesalers and retailers to push the product to the consumers. Trade fairs, wholesaler discounts, bonus and all the activities which benefit the distributors are all examples of push strategies. Hence the demand is pushed or created in the distribution channel. These activities are not visible to consumers and hence it is mostly unknown to the customers.
So when one goes to a mobile store to buy a new phone and the shopkeeper urges and shows only Samsung phones, it is push marketing and the shopkeeper is getting more margin on selling Samsung phone than any other brand.
In pull strategy promotional activities are done for the consumers. Advertisements, digital campaigns, discounts in stores etc are some examples of pull strategy. Hence demand is created in the consumers which in turn go to the retail stores or e-commerce websites to buy these products. These activities are visible to all the customers.
When a customer goes with a specific brand and product in his mind to the market, it is the pull strategy that has worked for the company.