Marketing principles and applications

¶ … push" distribution channel strategy, and cite an example of a real company that uses it.

The concept of "push" distribution channel strategies are where companies define multichannel management strategies for gaining the cooperation of their channel partners, resellers and distributors to resell their products and remarket their services. Often higher levels of gross margin are offered as an incentive to members of a distribution channel to stock and sell products. In addition, push-marketing centers on offering an entire series of incentives to channel partners, resellers and every tier of a distribution network (Olver, Farris, 53). Computer companies are known for being very push-oriented as they seek distribution for their products. Cisco in particular uses push marketing by offering cash incentives to their resellers for selling the entire range of Cisco routers, hubs, switchers and networking equipment.

A b) Define, in your own words, the concept of "pull" distribution channel strategy, and cite an example of a real company that uses it.

The concept of pull marketing is where companies spend heavily to generate demand with consumers, and then define their systems, processes and products to make them easily sold. Pull marketing requires a highly organized approach to promotion, manufacturing, and fulfillment with many companies relying on frameworks to accomplish this (Wiles, 3). Nike is an example of a company with very strong pull marketing as it is one of the best-known brands globally. As a result, Nike has been able to manage its channel more effectively than other retailers, concentrating on sustaining its pricing as a result. Companies with exceptional pull marketing have strong control over its channels as well.

In your own words, which strategy do you believe is the more effective strategy in creating consumer demand, and provide your rationale for making that statement.

The more effective strategy for creating consumer demand is pull-oriented, yet is inordinately more expensive to initiate and maintain. The costs of a pull strategy include continual advertising both online and offline, and a continued commitment to keep the brand and its value at the forefront of consumers' mind. Once a customer has become loyal however, pull marketing strategies make up-selling and cross-selling products more effective. By initiating a strong pull-oriented marketing campaign, marketers can also attain greater levels of control over their channels as well.

Part Two: Product advertising Objectives

Locate a print advertisement (magazines, newspapers, direct mail, etc.) that has a special appeal to you personally. The located of the ad is also cited below.

The advertisement was chosen from the August 6th edition of the Wall Street Journal, featuring the partnership between Sprint and Treo (Sprint/Treo Advertisement, 2008).

Write a comprehensive description of that advertisement so that your classmates can visualize it.