Push–pull strategy

The two business terms push and pull comes from the field of logistics ( see also pull principle in Lean management) and supply chain management, but can also be found widely in different sub- areas of marketing. In the field of marketing, this refers to sell goods at a market two opposite strategies. Under certain conditions, both strategies can be combined. An optimal push-pull mix depends on the type of product, the customer experience, the length of the distribution channel and the availability of media.

Marketing

Push strategy

A push strategy is used when an asset to the consumer is unknown and the benefits that this estate creates, must be signaled. An example would be a new perfume. The consumer does not know in advance what perfume he preferred, but can only make a decision if he has advance of information such as odor samples. Companies are trying to information asymmetries by signaling, so (for example, use of sale displays) to reduce advertising and other measures in the promotion. When push strategies to the consumer there is a latent need which through marketing activities - in a conscious desire or in demand ( effective demand ) can be converted - for example, aggressive pricing policy or personal selling. Another example of a push strategy in the field of advertising is direct mail. The consumer receives from the company information or services (buy probationer ) without previously an open need arises. New products in an existing market as well as particularly in need of explanation goods (eg capital goods ) are also introduced with push strategies. Also on long distribution channels push strategies are used by turns in the form of sales promotion on trade to consumers in the absence of brand awareness.

Pull strategy

In the pull strategy, the company tried by the screening, strategically align its range as per the demand of the consumer. The pull strategy is thus based on the consumer, who will buy a product. The manufacturer builds an image and brand awareness and practice by the consumer pressure on the trade by the customer asks for the product. The trade is then forced to lead this product if demand in its range. Marketing measures to bring the trade to sell the merchandise, are only incidentally or not at all used. From pull strategy is also spoken in this context, if the products advertised on mass media (so-called media in advance) and are thus actively requested by customers in retail. Most can only larger companies can afford to, after the pull strategy to act by investing significant amounts in branding, creating a demand for their products to the consumer; this then acts like a suction to the product distribution system.