Push and pull strategy of Motorola Essay

Push Examples of companies are a) For example, Motorola use a push strategy to make arrangements with large mobile phone providers, such as Sprint, Verizon and AT&T, who can advertise phones directly to consumers. Businesses can promote products to wholesalers and vendors through trade shows, contacting local retailers and providing attractive packaging and point of sale displays to convince consumers to buy. b) Second is Nokia, Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies like Nokia. For example, Nokia offering subsidies on the handsets to encourage retailers to sell higher volumes. Pros: 1. To develop this kind of positioning, all one has to do is look at the competition’s literature and come up with positioning that seems sufficiently different from the alternatives. Potentially saves time because it can be done without speaking to customers. Maybe a good first step in developing a go-to-market strategy. 2. Using a push strategy usually costs less money and draws more business, because companies negotiate with large vendors. For example, a producer selling a product to Walmart can receive most of its business from a single retail outlet, allowing the business to focus on its product manufacturing and supply chain while worrying less about its relationship with customers. Cons: 1. The competition may have it all wrong and have no idea about what customers really want, so trying to work around the competition’s messaging may be pointless, since they all have it wrong anyways-and company probably do too since the company haven’t spoken to any customers 2. Push strategies can rely too heavily upon large vendors, which limit a business’ pricing and flexibility when selling a product. For example, a large producer like Walmart may dictate the price at which the business can sell its products. Pull Examples of companies are a) A good example of a pull is the heavy advertising and promotion of children’s’ toys, Toyrus. Consumers will go to ToyRUs and ask for a toy that was advertised on the television, and then ToyRus will ask the wholesalers who will then ask the producers about the product and meet the demand. b) Second example is car manufacturing company, Ford Australia. Ford Australia only produces cars when they have been ordered by the customers. Applied to that portion of the supply chain where demand uncertainty is high production and distribution are demand driven no inventory, response to specific orders point of sale data comes in handy when shared with supply chain partners decrease in lead time difficult to implement Pros: 1. Removing Pressure. One of the primary attractions for pull marketing is to mitigate the pressure of conducting outbound marketing. Marketers do not need to actively persuade customers that they need the product; customers are naturally drawn to it. 2. A pull strategy can create large demand for products in a short time, especially if a new business has difficulty building up market share for its products. Businesses can easily solicit customer feedback on how to improve products. Also, dealing directly with customers enables businesses to cut out retailing middlemen. Cons: 1. Requires extensive customer interactions to identify the things that customers feel are the differentiated features of the product. It is difficult to done to get customer interaction. 2. Advertising expenses can be costly with a pull strategy, unless a business gets lucky with a viral marketing campaign. Building a brand can take years and cost millions before customers become loyal to a product line.