Page 148 - Marketing the Basics 2nd

140 Marketing: the Basics
promotional activities toward the final customer. Employing a pull strategy entails taking the opposite approach. The producer directs its promotional activities to the final customer, who in turn seeks the product from channel members. Channel members in turn, react by placing more orders with the producer.
Many companies use both strategies. When they work together successfully, a company can start the money-printing presses. A customer walks in asking for the product and the company not only has it but is enthusiastic about selling it, rather than trying to sell the person another product where they make a bigger commission. Computer-chip maker Intel uses both the pull and push strategies. All of its promotional material aimed at the final consumer demonstrates the benefits of using the latest microchip. Intel also insists any machine that uses an their chips must have an ‘Intel Inside’ sticker prominently displayed so no one forgets whose technology is powering the machine.
Buyers also employ the same strategies to accomplish an objective. When customers want a new product developed, they can inform the manufacturer to build it (usually in the form of user feedback) and then the product gets pulled through marketing channels. Or the customer could push the idea through the intermediary first before getting to the manufacturer. It all depends on how you look at the situation.
Marketers can elect to use a pull or push strategy to promote their product. The strategy employed depends heavily on the relationship the seller has with its customers. If its product is branded as one that offers experiential benefits, a push strategy not only creates a buzz in the marketplace, but also creates a situation where the customer is requesting products to be offered, which, as we mentioned earlier in the book, is the ultimate aim of marketing – get the customer to come to you. So that’s the aim, how do you do it? In the next section we discuss the various promotional tools at a manager’s disposal.