M.com Part 1 (Semester 2) E-commerce question bank pdf

   M.com Part 1 (Semester 2)

E-COMMERCE

Most Important Question Bank for Current Exam

M.com Part 1 (Semester 2) E-commerce question bank pdf

Q.13 Write a note on push and pull approaches of e-enterprise.

PUSH AND PULL APPROACHES

Promotional strategy is to get our product or service to market can be roughly divided into two separate camps.

1. PUSH STRATEGY: -

A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of the brand at the point of purchase.

“Taking the product to the customer”.

Examples of Push Approach: -

 Trade show promotions to encourage retailer demand

 Direct selling to customers in showrooms or face to face

 Negotiation with retailers to stock the product

 Efficiency supply chain allowing retailers an efficient supply

 Packaging design to encourage purchase

 Points of sale displays.

2. PULL STRATEGY: -

A pull strategy involves motivating customers to seek out the brand in an active process. “Getting the customer to come to you.”

Example of Pull Approach: -

 Advertising and mass media promotion

 Word of mouth referrals

 Customer relationship management

 Sales Promotions and discounts

PUSH STRATEGY/ APPROACH: -

 The term ‘push strategy ‘describe 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 techniques can work particularly well for lower value items such as fast-moving consumer goods (FMCG). When customers are standing at the shelf ready to drop an item into their baskets and are ready to make their decisions on the spot.

 This term now broadly encompasses most direct promotional techniques such as encouraging retailers to stock your product, designing point of sale materials or even selling face to face.

 New businesses often adopt a push strategy for their products in order to generate exposure and a retail channel. Once the brand has been established, this can be integrated with a pull strategy.

PULL STRATEGY / APPROACH: -

 ‘Pull strategy’ refers to the customer actively seeking out your product and retailers placing orders for stock due to direct consumer demand.

 A pull strategy requires a highly visible brand which can be developed through mass media advertising or similar facts. If customers want a product, the retailers will stock it-supply and demand in its present form, and this is the basis of a pull strategy. Create the demand and the supply channels will almost look after themselves.

 A successful strategy will usually have elements of both the push andpull promotion methods. If we want to starting a new business and intend to sell a product through retailers, we will almost certainly need to persuade outlets to purchase and stock our product.

 We will also need to raise brand awareness and start building valuable word of mouth referrals. If we have designed a product around the customer and have considered all elements of the marketing mix, both of these aspects should be achievable.



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