Should we push or pull?

This week I wanted to compare how companies incorporate either a push or pull strategy in order to generate more sales. I was curious to see how different companies approached their customers and their strategy. In my company, we do not necessarily incorporate either strategy but if I had to choose one, I would say that accounting firms generally have a pull strategy. In bringing in new and current customers, accounting firms will work on creating good customer relationships. The profession is highly dependent on word of mouth referrals that will pull customers in. Many new clients that we receive often times come to us seeking help or assistance. These companies know the type of work in which we perform and come to us. I did notice however that little advertising is used to pull customers in. Unlike most companies which may incorporate a pull strategy, I have seen that little advertising is done to pull the customer in. Instead we rely on strong word of mouth advertising to bring in those new customers. That word of mouth advertising comes from our relationship selling in which we successfully manage the customer.

Next I looked at automakers in how they implement either a pull or push strategy. I believe that in the automobile industry, implementing the strategy is dependent on the type of vehicle. For example, standard and basic cars such as the Honda Accord or Toyota Camry use a pull strategy by advertising to customers as much as possible. These automakers compete heavily and try their best to draw customers to them. Similar to my company, these automakers also look to create those valued relationships with customers. Other tactics used include offering varying promotions and rebates which will further help to draw customers to them. In looking at higher end automobiles such as Lamborghini or luxury Mercedes Benz and BMW, more of a push strategy is used. For example, these vehicles are highly specialized to a specific market (high cost luxury vehicles) and companies strive to be close to their customers. This includes having special trade show promotion that encourages more demand. This push strategy works to establish a more specific customer as the product is very defined and is not intended for the entire population. These companies must push the product to the customer because it might be the only way to get them aware of it.