Social media tactics rive real customers, Increasing traffic to the website, capturing qualified leads and making sales. Targets customers must be aware of the products and its benefits. Pull Communications Customer-directed marketing communications are pull communications. The objective of a pull marketing communication are to build awareness, attraction, and loyalty and to reduce search costs. When a push communication is successful, customer will seek out product and its benefits.
A pull strategy must ensure that channel Intermediaries carry the product in sufficient quantities. Pull Communication – Media Advertising 2- Social Medal 3- Sales Promotions 4- Direct Marketing Target Audience Customers and Potential customers Pull Objectives 1- Awareness 2- Interest 3- Purchase 4_ Loyalty 1- Sales Incentives 2- Channel Financing 3- Co-pop Advertising 4- Channel Marketing Channel Customers and Influencer Push Objectives Build Channels Interest Purchase Inventory Marketing Efforts Push Communications Push communications are directed at channel intermediaries.
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The objective in this strategy is to motivate channel intermediaries to carry a particular product or brand o make it more available to customers. There is need to understand that it is the combination of push and pull marketing communications that creates the greatest customer impact on customer response and therefore produces market share. Push Communications and customer Response The Power of media advertising, Fate of L&M cigarettes Before cigarette advertising on television was banned, L& M had a 17 percent market management believed that the forms of advertising other than television were ineffective.
The manager were wrong. And Today L&M is no longer on the market. The reduce had good brand image and good customer pull, but without continuous reinforcement of the brand name and it’s positioning. The product faded from customers and eventually from the market place. Push Communications and customer response The marketing communications that are directed at channel intermediaries are push communications. The objective of push communications is build greater product availability and marketing efforts.
Companies that are aggressive in rewarding and supporting their intermediaries are able to obtain more market coverage (number of desired distributors) than are nonaggression businesses. Define alternative marketing channels and discuss any four channels in this category? A company first decide whether to use a direct, indirect or mixed channel system. Most businesses prefer to sell and distribute directly to target customers. A channel system gives businesses full control when interfacing with customers.
EXAMPLE Purchase computers, printers, modems and telecommunications equipment from several manufacturers along with specialized software to produce an information and management system for use in farming. Prefer to buy complete system Memos BBC Traditionally businesses in consumer market use indirect channel Example ONLINE retail like brick and mortar retail Online retailers buy their products from manufacturers or wholesalers and resell them to consumers over the internet. BIB and BBC marketing channels Define and discuss product life cycle pricing strategies used in marketing?
Skim pricing is the strategy that businesses often implement during the early stages of the product life cycle. 2. Single Segment Pricing Business can use a single- segment pricing which is a value based pricing strategy. To produce an attractive savings (economic value) while maintaining a premium price. Example: The price of Bio Tropics product is higher than the price of its competitors’ products but the customer’s total cost of purchase, or the cost of ownership is much lower than for the competitors’ products.
Its value in use is higher than that of the competing products and the customer saving money 3. Penetration Pricing Penetration Pricing is a mass-market strategy. It is most effective in the growth stage 1. Product differentiation diminishing 2. Customers are price sensitive. 3. Many competitors 4. Many substitutes 5. Price sensitive customers 6. Easy competitors entry 7. No sustainable advantage 4. Low Cost Leader Pricing Wall- Mart has established itself as the low-cost leader in retail.
By reducing its cost for the goods it sells and by minimizing operating expenses but BIG and Wall-Mart have a volume advantage that contribute to their cost- reduction efforts. 5. Multi- Segment Pricing Price-sensitive segment is attracted to a product with a low price regardless of the product, service or brand benefits. Customers in a quality-conscious segment are willing to pay more for additional benefits. Example: GE and low price point White Water Heater 5 years Warranty Green Water Heater Metallic thermostat years Warranty 6.
Reduce- Focus Pricing Mature Market Increase prices for higher margins (Profits) Intention is to reduce volume and market share After first price increase, many price sensitive customers leave. Price increase diminish their numbers. Best combination of volume and profit is achieved 7. Harvest Pricing Combination of price and volume. Late stage of product life cycle Poor Profit. Low volumes Need for higher margin, increase prices in order to reduce volume. Late stage of product life cycle. Example: Automobile Components manufacturers Raise prices 15 percent.
Lost 30 percent of business volume. Raise prices 10 percent, moderate decrease in volume 8. Plus- One Pricing Example- Volvo Lexus Mercedes Plus- one- pricing can be used when a business product position is the about the same as competitors’ position in every area of product and service quality except one area of performance business product is superior than its customers. Definition: A Portfolio analysis is an evaluation of a business, product or market with respect to market attractiveness and competitive position.