Pull Ads...

How are sales going for you?

I hear ya. The economy is in a deadly downward spiral, fueled in part, by the media.

The more the media tells us how bad the economy is, the more we believe it. As the economist for the Federal Reserve here in Chicago said at an Automotive Aftermarket Symposium I attended in June, we aren't even in a recession, yet! A recession is commonly defined as two quarters with no growth in GDP. (But the National Bureau of Economic Rearch doesn't define recession in these terms. By NBER's definition, we can have both a recession and a positive real GDP at the same time.)

But I'm not an economist. I'm a marketing advisor. So, what can a marketer do to boost sagging sales?

Pull advertising.

I think I just heard you gasp. Why on earth would I say "pull advertising"? Isn't this the most important tool we have to grab any market share we can from our competitors? Absolutely. I didn't say STOP advertising. In fact I didn't even say you should YANK all your dollars from any marketing investment. (Although you might want to shift dollars away from low performing marketing investments into high performing ones.)

What I said was "Pull Advertising" as in using a "Pull Marketing" strategy.

Pull Marketing is an advertising and promotion strategy directed at PULLING sales out of your customer. Pull techniques are things like discount coupons, buy-one-get one free offers, and various buying bonuses (like "25% more free"). Pull marketing's goal is to create a sense of urgency or value so you build demand and win immediate sales. (Yesterday, I printed a Walgreen's coupon for Beth for $5 off $20. A nice discount and a good Pull Strategy.)

Push marketing is an advertising promotional strategy geared to your distribution channels. It's about encouraging them to PUSH your product. Classically, this is seen as volume discounts, wholesale bonuses, trade giveaways, and support materials (like "buy three cases, get one free."). The goal is to get distributors excited about about selling more of your product. (I'm flooded with ads from my suppliers encouraging me to sell more -- as if my goal was to sell LESS!)

In times like this, I don't think you need to push distributors to sell, you need to pull customers to buy. Every distributor wants more sales. But not every customer wants to spend money. This is the time to give your best incentives to your customers.

Although I believe you need to use both Push and Pull strategies to be a balanced marketer, you don't need to use them equally. You need to adjust your strategy to the economy just as a smart investor will shift back and forth between stocks and bonds.

So let me clarify one more time: Pull Advertising doesn't mean pulling your ads. In fact, it might mean buying MORE ads.

Homework: Are you offering incentives to get customers to buy? Are you using discounts, premiums, bonus offers, rebates, contests, sweepstakes, or continuity programs to get customers to buy from you, or buy more often? Are you investing in Pull Advertising or are you cutting back on the best way to communicate your competitive advantage?

-- Phil Sasso