Following the MSA, the industry shifted its focus from thetraditional advertising venues such as newspapers, outdoor media, and abroad range of magazines to retailer incentive programs (Feighery andRibisl, 1999). About 77 percent of the industry's promotionalbudget is spent on retail trade promotions or point-of-purchaseadvertising (FTC Report, 2004). Some of the industry's currentretailing practices seem to raise ethical questions. Specifically thetobacco companies' strategy of spending significantly onpoint-of-purchase advertising and promotion is suggested to underminethe efforts to reduce exposure of tobacco advertisements to youth(Wakefield et al., 2000). The heavy reliance on trade promotions is nota new phenomenon in the tobacco industry. But, increasing emphasis onpush promotional strategy, with point-of-purchase retail displays andpromotional allowances to retailers, is considered to be controversial.A recent study revealed that the tobacco manufacturers, in general,offered larger incentive payments to convenience stores to encouragespecial promotional support for tobacco products at the retail level(Feighery and Ribisl, 1999). The size of the retail trade incentives forpromoting tobacco products was more than twice the amount given for anyother product. As a result, there has been a significant increase ininterior and exterior store advertisements for tobacco products(Wakefield, 2000). The tobacco control advocates believe that use ofin-store advertising and merchant incentives will increase exposure oftobacco products to youth segment.
Explore the Strategy of Push Marketing
1. Push strategy
A push promotional strategy involves taking the product directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase.
All advertising can fall into two broad categories – push and pull
Push Promotional Strategy - a process of maximizing the use of all available channels of distribution to "push" the product or service into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the product or service, thus minimizing your need for advertising.
Push and Pull Strategies - Boundless Open Textbook