Promotional Mix Strategies Promotional Mix Strategies Push versus Pull and More

Influences Push Strategy calls for using the sales force and trade promotion. Push Strategy calls for using the sales force and trade promotion. Pull Strategy calls for spending on advertising and sales promotion to build consumer demand. Pull Strategy calls for spending on advertising and sales promotion to build consumer demand.

Push Strategy: Persuade wholesalers and retailers to carry brands. Persuade wholesalers and retailers to carry brands. Give a brand shelf space. Give a brand shelf space. Promote a brand in coop advertising. Promote a brand in coop advertising. Producer WholesalerRetailerCustomer

Push Strategy: Be careful of those big displays at the end of the aisles. Be careful of those big displays at the end of the aisles. End Aisle Displays. End Caps. End Aisle Displays. End Caps. Look at the prices. Only about 40% is actually on sale. Look at the prices. Only about 40% is actually on sale. Because they are so bright, big and visual, we feel it’s on sale. Because they are so bright, big and visual, we feel it’s on sale. Producer WholesalerRetailerCustomer

Pull Strategy: Entice customers to try a new product. Entice customers to try a new product. Lure customers from competitive products. Lure customers from competitive products. Hold and reward loyal customers. Hold and reward loyal customers. ProducerWholesalerRetailerCustomer

Push Tools: Deals- Allowances, Price-offs and Discounts Deals- Allowances, Price-offs and Discounts Displays and Point of Purchase Displays and Point of Purchase Dealer Premiums Dealer Premiums Samples and Free Goods Samples and Free Goods Buy-Back Guarantees Buy-Back Guarantees Cooperative Advertising Cooperative Advertising Advertising Materials Advertising Materials Push Money (Spiffs) Push Money (Spiffs) Dealer Meetings and Contests Dealer Meetings and Contests Specialty Advertising Items Specialty Advertising Items

Pull Tools: Sampling---in-store, events, newspaper, in-pack Sampling---in-store, events, newspaper, in-pack Cents Off Promotions and Coupons (-2%) Cents Off Promotions and Coupons (-2%) Continuity/Frequency and Loyalty Programs Continuity/Frequency and Loyalty Programs Premiums Premiums SLO (Self-Liquidating Offers/Premiums) SLO (Self-Liquidating Offers/Premiums) Point of Purchase Displays Point of Purchase Displays Contests, Games and Sweepstakes Contests, Games and Sweepstakes Rebates and Cash refunds Rebates and Cash refunds FSI’s (Free-Standing Inserts) 80% of distribution FSI’s (Free-Standing Inserts) 80% of distribution Advertising Specialty Items Advertising Specialty Items

Questions: Are distributing drug samples to doctors a push or a pull strategy? Are distributing drug samples to doctors a push or a pull strategy? Incentives from HBO to hotels and motels. Push or Pull? Incentives from HBO to hotels and motels. Push or Pull? Beer.com produced 50K bottle caps featuring its name and left them on bars during spring and winter breaks. Push or Pull? Beer.com produced 50K bottle caps featuring its name and left them on bars during spring and winter breaks. Push or Pull?

Question: Wal-Mart TV network (in store) 42” plasma screens 42” plasma screens A smart buy or a goodwill, defensive gesture? A smart buy or a goodwill, defensive gesture? Sets are silent. Sets are silent. In-store advertising system. In-store advertising system. In fall ’06, $247K, 129 million impressions and CPM: $2.28 includes three :30’s, and five :10’s, every two hours. In fall ’06, $247K, 129 million impressions and CPM: $2.28 includes three :30’s, and five :10’s, every two hours. AdvAge 9/06 AdvAge 9/06

Push strategy is appropriate with low brand awareness in a category and brand choice is made in store. Can be an impulse purchase and product benefits are understood. Push strategy is appropriate with low brand awareness in a category and brand choice is made in store. Can be an impulse purchase and product benefits are understood. Pull strategy works best with high brand awareness and loyalty, or high involvement in category and customers look for product differences. Pull strategy works best with high brand awareness and loyalty, or high involvement in category and customers look for product differences. Summary:

Promotional Mix Strategies Push versus Pull and More

Hints and Comments: Wal-Mart Touts In-Store TV Wal-Mart Touts In-Store TV Research claims advertising on its in-store marketing network, with Premier Retail Networks, is more efficient than Cable and Network TV advertising in generating sales. A survey of TV watchers conducted by the TNS Media & Entertainment Group found that 15% of viewers purchased advertised products immediately after seeing them on an in-store broadcast. Research claims advertising on its in-store marketing network, with Premier Retail Networks, is more efficient than Cable and Network TV advertising in generating sales. A survey of TV watchers conducted by the TNS Media & Entertainment Group found that 15% of viewers purchased advertised products immediately after seeing them on an in-store broadcast. MediaPost Communications 11/30/05 MediaPost Communications 11/30/05MediaPost CommunicationsMediaPost Communications