M.com Part 1 (Semester 2)
E-COMMERCE
Most Important Question Bank for Current Exam
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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