The Push vs. Pull Marketing

For today, it is most likely impossible to single out any one strategy for promotion. Since there are certain tools and knowledge that allow you to take into account and use the complex, combine pull and push. Moreover, with the proper allocation and choice of strategy in the complex, you can achieve good results. Let's consider each strategy and their mix.

What Is the Pull Marketing Definition?

This is a consumer-oriented marketing process.

What Is the Pull Strategy features?

The pull strategy is based on the use of the methods of promoting the goods. It focuses on the end user. It operates according to the following scheme: the consumer has a desire to purchase a certain product, he addresses a retailer with a requirement to provide him with this product and the merchant applies this requirement to the wholesaler. The latter addresses the manufacturer and buys the necessary goods, lowering it down the chain.

When to Use Pull marketing?

This strategy is best applied in the following cases:

  1. If you and your product are going for a long time in business.
  2. If you have the time, and you are ready to wait out some stages of the weak consumer activity.
  3. If you want to attract the foreign investment.
  4. If you want a more transparent and effective capitalization of the advertising costs.

What Is the Push Marketing Definition?

Push marketing is a marketing system with an impact on both distributors and the end user.

What Is the Push Strategy Features?

The push strategy is aimed at accelerating the movement of goods through distribution channels to the end users. The strategy is based on the use of methods to stimulate trade and personal sale. The first method is focused on the promotion of goods in retail trade, the second method is aimed at wholesalers in order to persuade them to purchase the goods.

When To Use Push marketing?

The examples of push marketing use:

  1. Your product is designed for the mass market and doesn’t require the detailed market research.
  2. Your product isn’t going to stay long in any particular market segment and the product production is temporary.

What about The Combination Push vs. Pull Strategies?

In some markets, there may be a practice where the push and pull marketing strategies work together. Primarily, this is determined by the degree of the market homogeneity. In some cases, it is necessary to resort to the PULL strategy, when the intermediary cannot be PUSH-stimulated (for example, it is already "engaged" by competitors). Let's consider the main differences between pool and push strategies.

The main tasks:

PUSH:

  • Development of support for the resellers and intermediaries.
  • Increase market coverage, increase the "shelf space" brand.
  • Promotion of the brand through joint actions.

PULL:

  • Stimulation of strong consumer demand through pre-sales work with the end customers (through informing).
  • Creation of the pressure on intermediaries from the end user.

The Tools

The components of PUSH marketing:

  • Price promotions, discounts, etc. Personal sales;
  • Premiums for the dealers;
  • Delegation of "missionaries" (professionals from the manufacturer) to support sales;
  • Seminars and competitions for the dealers;
  • Trade shows (trade shows at exhibitions, etc.);
  • Samples and free goods;
  • Guarantee of return of the purchases;
  • Shares in the places of purchases;
  • Joint advertising;
  • Advertising materials (POSM, POPM);
  • Refund of money ("kickbacks");

The components of PULL marketing:

  • Tastings, sampling - in the store, on the events, in the magazines, etc.
  • Bonuses and coupons;
  • Loyalty programs;
  • Prizes;
  • Displays in the points of sale;
  • Contests, games, and lotteries;
  • Discounts and refunds;
  • Advertising inserts;
  • Advertising souvenirs.

The Advantages

PUSH strategy: Effective for markets where:

  1. The goods are not differentiable;
  2. The consumers don’t expect outstanding properties of the goods;
  3. Possible spontaneous purchase;
  4. The role of distributors is high, where they manage information or other competencies.
  5. The strategy is advantageous when your product is unknowable, and the decision is made at the place of purchase. It often looks low-cost, not demanding for large budgets.

PULL Strategy: Effective for markets where:

  1. The goods are highly differentiated (have distinctive features);
  2. The expectations and preferences of the end-users can be stimulated, created and maintained. Stimulates the consumer to try a new product, make a trial purchase. Helps to switch customers from the competitors' products.
  3. The strategy is beneficial when your product is recognized, has loyal consumers, the high involvement of consumers in the purchasing process and when they are looking for unique product benefits.

The Disadvantages

The disadvantage of push marketing: The presence on the shelf doesn’t mean the good sales. The product needs additional support on the side of the end user. The manufacturer's support often ends at the stage of the nearest intermediary and the goods reach the end consumer "naked," without advertising materials. This leads to the low competitiveness of the goods and low sales. Frequent shares reduce the value of the product in the eyes of intermediaries. Frequent discounts worsen profitability. The nearest intermediaries take all possible benefits and the next through the chain gets a low-value offer.

The disadvantage of POOL marketing: It requires large budgets. The most common mistake is when the goods are not yet in the retail, and stimulating advertising is already underway. As a result, the client comes to the store and does not find the desired product, and the producer's money, meanwhile, flies into the pipe. Intermediaries for various reasons cannot always recognize the growing demand for products. While the trading chain will respond to the growing demand, it can take a long time. During this time, the goods will be sold off the shelves and the advertising, going to the media in this period of time, will go to waste, and this is a lost profit.

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