topic analysis of obstacles and difficulties when implementing push and pull marketing strategy and giving illustrative examples from businesses

MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY SCHOOL OF BUSINESS UEH UNIVERSITY MODULE: BASIC MARKETING TOPIC: ANALYSIS OF OBSTACLES AND DIFFICULTIES WHEN IMPLEMENTING PUSH AND PU

MINISTRY OF EDUCATION AND TRAINING

UEH UNIVERSITY SCHOOL OF BUSINESS

UEH

UNIVERSITY

MODULE: BASIC MARKETING TOPIC: ANALYSIS OF OBSTACLES AND DIFFICULTIES WHEN IMPLEMENTING PUSH AND PULL MARKETING STRATEGY AND GIVING ILLUSTRATIVE EXAMPLES

FROM BUSINESSES

Instructor : Associate Prof Dr Tran Mai Dong Class code Section > 23C1MAR50300110

Students perform : Lưu Huệ Mẫn

Ho Chi Minh City, October 20, 2023

Table of Contents THANK YOU 01 12 122 0222 211212 122 1tr eryg 3 INTRODUCTION 2 0 1221221222221 112101821212 12t rrrrete 4 CONTENT 52 52 1221211171211 1212212110111 21111121 eererreg 5

le on aá 1.1 Push strategy and Pull strategy quickview

1.2 Difference between pull and push sfrafegies 00.002 TH nnnn TH ng khen Hy 5

2 Obstacles and Challenges of Push Marketing Strategy -.-QQQQ Q2 ẶẶc S2 6

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2.3 Difficulty tracking performance - 2021111111111 1 11111111 011K HH 11 111k kEt 8

3 Obstacles and difficulties of pull marketing strategy -. ST SSSSS S22 8 Kaisi go sac n4 8 3.2 Requires masftery of customer infonmation - - 2 0 Q0 2222222211111 11111 2111k 1k H1 1k ke 9 3.3 Time is needed to build a relationship 2.00111212112211 H1 TT nh 1K KT ng kg 1kg 9 3.4 Motivation and reSOUFC@S L TT TH nn HH TH KT kg KT KT Tre 10

4 Specific illustrative example from NIVEA dairy company . -ccSScSSSccS-~ 11 4.1 Overview 90) =6 6 (-(:(535 4.2 NIVEA's target customers

4.3 NIVEA Products Overview

4.4 Difficulties that Nivea encountered in its pull strategy

4.5 NIVEA overcome obstacles in implementing the pull strategy .00 ccceeeceeseeeeeeeeeeeeeseeees 14 4.6 Difficulties that Nivea encountered in its push strategy LH na 14 4.7 NIVEA overcome obstacles in implementing the push strategy Lee 15

09/9559) 005 a 16 REFERENCES QQ.Q Q.20 nh nh HH HH kg KH ĐH Hi thà 17

THANK YOU

Before starting the essay, we would like to send our sincere gratitude to Mr Tran Mai Dong - basic Marketing lecturer of class MR002

| would like to express my deep gratitude to the teacher - who spent time and effort

to impart useful knowledge about the basic knowledge of Marketing to me You are not only a great teacher, but also a companion who truly care about our development

Your lectures are extremely engaging and practical, helping me to gain a deeper understanding of the complex aspects of Marketing Thanks to you, we have a clearer view of the basic issues that a Marketer must grasp and also grasp in-depth research and analysis methods In addition, you also spend a lot of time guiding and helping us in the learning process, helping us overcome difficulties and develop our abilities You have created a friendly and encouraging learning environment, helping us become more confident in learning and developing ourselves

For all of that, | want to send our sincere thanks to you, what you have taught and guided us will always be a great source of motivation in our lives | hope that you will forever be the ferryman, bringing generations of UEH students to useful shores of Marketing knowledge Sincerely thank you and wish you good health and lots of joy

INTRODUCTION

In the increasingly competitive landscape of today's business world, applying the right and effective marketing strategies is an indispensable part of any enterprise In this intense competition, advertising and marketing your products have become more critical than ever With the ever-evolving technology and changes in customer attitudes, marketing strategies need to adapt and evolve as well

In this research topic, we will focus on analyzing the obstacles and difficulties that businesses may encounter when implementing push and pull marketing strategies Particularly, we will use examples from NIVEA's marketing strategy - one of the prominent and successful brands in the skincare and cosmetics industry - to illustrate specific challenges and difficulties

NIVEA has had to face various factors influencing their marketing strategy, and how they overcame these obstacles can provide valuable lessons for other businesses

We will examine both aspects of the push and pull strategies, starting from identifying the target audience to developing multi-channel marketing campaigns and how they leverage new technology to optimize marketing performance

Therefore, we will delve deeper into how the implementation of push and pull marketing strategies can encounter specific challenges and obstacles, and through the NIVEA example, we will gain a better understanding of how successful businesses can overcome these challenges to achieve success in today’s business world

CONTENT

1 Concept

1.1 Push strategy and Pull strategy quickview

Push marketing is a strategy to promote products by incentivizing intermediaries

to sell them It relies on offering discounts to encourage intermediaries to clear excess inventory and maximize profits by pushing products to other intermediaries or customers The execution principle of this push strategy is based on the profit derived from product consumption through discounts between intermediaries and distributors Pull marketing is a strategy focused on using advertising, events, PR, and other direct marketing methods to attract consumers and generate demand for products or services, ultimately bringing customers closer to the business

1.2 Difference between pull and push strategies

While the pull strategy focuses on attracting consumers and getting them interested

in products or services, the push strategy, on the other hand, pushes products toward customers (Ostergaard, Dieckmann et al 2011)

Comparison Pull strategy

On the contrary, the pull strategy is the business's marketing efforts and determination aimed at getting potential customers to seek ou the product on their own when they are interested

Push Strategy Also known as Outbound Marketing, specifically, it involves activities aimed at promoting marketing to existin customers and potential customers about the product

Therefore, you need to seek potential customers for your product so that they are ready receive it

With the push strategi

Conception

Pull strategy makes it easier f

Strategy

customers to find your busines The focus of that strategy is increase brand visibility, attra customers then convert in leads The form of advertisin deployed is content deployme

on the website

businesses will find ways | bring products to custome through a number of channd such as television advertisin print, direct mail or radio

Distribution

channel

Pull strategy depends on t

business's website syste Content is built to direc customers to perform operatio

on the page such as registeri

Push_ strategies often beg implementing offline marketin channels, such as sendi postcards This strategy w direct customers to a speci

leaving information, filling out forms

location, website or hotlin phone number

The level of custome Customer engagement is low a Interactive | interaction is very high and is| is a short-term strategy

abillity long-term strategy, requirin

information content to focus ¢ potential customer groups

Applicability | Instead of running expensive aj With push marketing strateg

Example: Print} on magazine pages, busines) people advertise articles abd advertising can deploy website SEO to brij product features on magazi and website | sales and conversion keywon pages Potential customers a SEO related to products and servid use the website or phone num

to the top of search engine Customers search and find † business's website and place order on the web or call th hotline

2 Obstacles and Challenges of Push Marketing Strategy

2.1 Fierce Competition

In the world of push marketing, companies face a challenging landscape marked

by several interrelated factors The saturation of advertising channels, including television, radio, print, and digital media, has created an environment where businesses must compete fiercely to secure prominent ad placements However, this heightened competition often results in rising advertising costs, adding to the complexity of the marketing landscape

To gain an edge, companies engage in aggressive brand promotion campaigns, continuously pushing the boundaries of creativity, messaging, and reach This perpetual race to outdo one another leads to a constant escalation of marketing efforts and expenses, as each brand strives to capture the attention of its target audience

Moreover, the ever-evolving nature of consumer trends adds another layer of complexity Rapid shifts in consumer preferences and behaviors necessitate swift adaptation by businesses Failure to do so can result in losing market share to competitors who are more agile and responsive to changing consumer demands

In this highly competitive environment, mimicry of successful strategies is a common occurrence When one company's push marketing strategy achieves success, competitors often rush to replicate it This mimicry intensifies the competition as multiple brands vie for the same consumer base, further underscoring the challenges companies face

to call to place an order

As a result, product differentiation becomes increasingly challenging in crowded markets Companies must invest more effort in highlighting their unique value propositions to stand out amid a sea of similar offerings

In conclusion, the intense competition within the realm of push marketing demands not only creativity and innovation but also strategic planning Companies must navigate this landscape with a keen understanding of consumer trends, cost management, and the need to distinguish themselves to achieve their marketing objectives successfully

For example: Consider the competition between Apple and Samsung Both companies conduct unique and innovative advertising campaigns to promote their smartphone product lines They compete not only in terms of product quality but also

in terms of their ecosystems, special features, and user experiences This rivalry drives ongoing development and leads to the creation of better products and services for

consumers

2.2 Distributors, agents

Today, retail agents and distributors are often hesitant to procure goods from businesses that lack a significant reputation This apprehension is understandable as there is a concern that excess inventory may lead to losses for the agents Therefore, when distributing products to retail agents, businesses should pay close attention to inventory management For instance, if an agent has an excessive inventory,

businesses can propose solutions like repurchasing at a discounted rate or reducing the cost of the goods being purchased

Furthermore, in the pursuit of this strategy, some businesses may encounter challenges in motivating and incentivizing their distributors and agents to procure goods In the present day, the market is continuously evolving, with a wide array of products and businesses emerging This makes it more challenging for distributors to make choices Hence, businesses may need to implement a discount policy based on the percentage of goods purchased in bulk to expedite the movement of products However, this approach also gives rise to a concern, as applying discounts must be done in the short term; otherwise, it may inadvertently devalue the products in the eyes of the agents

Lastly, the issue of pricing among different distributors should be balanced, with prices not varying significantly between them Failure to maintain price consistency among agents can lead to conflicts and a loss of trust among agents

Anotable example of this is the case of the influencer Võ Hà Linh's product distribution She distributed her products to agents at higher prices than those offered during livestream sales This led to strong disagreement among distributors and agents and resulted in conflict

2.3 Difficulty tracking performance

Measuring performance in push marketing strategies faces numerous real-world challenges Firstly, determining the impact of marketing activities can be complex when customers interact with multiple advertisements before taking action Secondly, the market environment changes rapidly, eroding measurement continuity Thirdly, the shopping process within a campaign is prolonged and intricate, making performance tracking more challenging Fourthly, accessing accurate and comprehensive data can be restricted or complicated due to privacy issues and data integration Fifthly, accurately identifying key performance indicators can be a challenge, and measuring performance demands an investment of time and resources This renders measurement a task that requires accuracy, patience, and continuous adaptation to changes in market and marketing contexts

For example: Sports businesses measure push advertising performance by utilizing direct data from social media and websites such as Facebook, Twitter, Instagram, and YouTube They employ data analytics tools to monitor customer interaction, encompassing metrics like views, engagement, and comments The inclusion of tracking codes or links aids in monitoring conversions, such as ticket purchases or product orders Moreover, they frequently employ online surveys and customer feedback monitoring to evaluate campaign perceptions, enabling adjustments for optimizing performance In summary, sports enterprises leverage a variety of tools and data sources to gauge the efficacy of their push advertising efforts, ultimately ensuring effective customer engagement

3 Obstacles and difficulties of pull marketing strategy

3.1 High advertising costs

High advertising costs represent a significant challenge for businesses in push marketing, stemming from various factors The intense competition in markets compels businesses to vie aggressively for customer attention, resulting in elevated ad placement costs, particularly on television and online platforms Additionally, the reliance on online and social media advertising has intensified the competition for ad space, triggering bidding wars among businesses aiming for visibility on popular websites and apps The timing of ads also plays a crucial role in cost dynamics, with events like the Super Bowl leading to a surge in TV ad prices due to high viewership Moreover, service and technology fees imposed by advertising companies and online platforms contribute to the overall increase in advertising expenses To tackle these cost challenges, businesses must craft intelligent advertising strategies, optimize budgets, and select appropriate communication channels to ensure top-notch performance This necessitates astute financial management and disciplined resource allocation within their marketing endeavors

For example: Advertising during events like the Super Bowl is extremely costly

In 2021, a 30-second Super Bowl ad cost over $5 million, making it the world's most expensive sports event for advertising While it offers access to a large audience and brand visibility, participating businesses face substantial expenses and require careful financial management

3.2 Requires mastery of customer information

Understanding the target audience in pull marketing strategies can encounter various challenges

Firstly, accurately identifying the target audience can be difficult, especially when operating in a diverse market with numerous potential customer groups

Secondly, market changes and shifts in customer behavior can rapidly alter information about the target audience This demands flexibility to maintain continuous insights into customers

Thirdly, data collection and analysis can sometimes be complex and resource- intensive Some businesses may struggle to access and utilize the necessary data to understand their customers

Fourthly, maintaining a high level of detail and accuracy in customer understanding requires a significant investment of time and resources This can pose challenges, particularly for businesses with limited resources and budgets

In conclusion, comprehending the target audience in pull marketing strategies necessitates an ongoing process and keen adaptability to overcome these obstacles and maintain a deep connection with customers

For example: An illustrative example of a challenge in understanding the target customer audience in a pull marketing strategy is the fashion business Zara Zara is renowned for its fast-fashion distribution and marketing strategy However, they encountered difficulties in comprehending and predicting the shopping trends of their customers The fashion market undergoes rapid changes, with trends evolving on a daily basis This makes it challenging to keep up and fully grasp the customers’ preferences Zara faced the predicament of producing products based on erroneous predictions of customer preferences, leading to inventory surplus and price reductions to liquidate excess stock Another obstacle is the collection and use of customer data Zara had to carefully consider customer privacy rights and restrictions on the collection of personal data This limited their ability to understand the target audience fully

3.3 Time is needed to build a relationship

Businesses need time to build relationships and trust with customers in their pull marketing strategy because trust and commitment cannot be built in an instant Customers require time to see that the business genuinely cares about them and is not just looking to make a sale Providing value and positive experiences over time is a way

to establish trust with customers This process demands patience, consistency, and long-

term investment from the business to create a sustainable relationship and customer trust

For example: Apple Inc serves as a concrete example of a technology company fostering long-term relationships through after-sales service Apple is well-known for its outstanding post-purchase support, particularly for products like the iPhone and MacBook Beyond product sales, Apple provides post-sale services, including extended warranties, technical assistance, and years of complimentary software updates They also regularly introduce new features and improvements through software updates to enhance the customer experience By delivering exceptional post-sales services and continuously enhancing their products, Apple has cultivated enduring relationships with their customers Customers can trust that, following an Apple product purchase, they will receive ongoing support and improvements, creating a sense of comfort and loyalty

to the brand for years to come

3.4 Motivation and resources

To successfully implement a pull strategy, several critical factors must be considered First, a deep understanding of the target audience, including their preferences, needs, and behaviors, is essential Second, the pull strategy should focus

on providing genuine value to customers, often through engaging content and high- quality products or services Third, a robust technical plan is necessary to execute the strategy effectively, involving the use of technology and efficient social media channels Fourth, adaptability and flexibility are crucial to respond to changes in the market and customer behavior Finally, measuring and evaluating the performance of the pull strategy is essential for making adjustments and optimizing campaigns (Silberstein

2006)

For example: Starbucks Corporation serves as a specific example of a business investing time and resources in building customer loyalty through a loyal community They achieved this through their "Starbucks Rewards" membership program, allowing customers to earn points with each purchase, which can be redeemed for free coffee or other items, fostering a rewarding system Additionally, Starbucks offers special promotions and incentives for members to encourage frequent visits Furthermore, Starbucks engages with the community through initiatives like "Starbucks Community Store" and "Cups of Kindness," actively participating in community activities and supporting charitable organizations This not only promotes a positive brand image but also strengthens their spiritual connection with the community In summary, Starbucks has invested time and resources in creating a loyal community through appealing reward programs and active community engagement, maintaining deep and loyal customer relationships