Push Strategy

Definition

A push strategy in marketing is a promotional approach where the manufacturer or producer focuses on pushing their products or services through the distribution channel to the final consumer. The goal is to encourage intermediaries, such as wholesalers and retailers, to stock and promote the product, ultimately making it more accessible and visible to the end-user.

5 Must Know Facts For Your Next Test

1. The primary goal of a push strategy is to encourage channel intermediaries to stock and promote the product, making it more accessible and visible to the end-consumer.
2. Push strategies often involve trade promotions, such as discounts, co-op advertising, and sales force support, to incentivize channel intermediaries to actively sell the product.
3. Push strategies are commonly used for new product introductions, where the manufacturer needs to build awareness and distribution among retailers and wholesalers.
4. Successful push strategies require strong relationships and collaboration between the manufacturer and channel intermediaries to ensure effective product placement, promotion, and support.
5. Push strategies are typically more supplier-oriented, as the manufacturer or producer takes a more active role in driving product distribution and visibility, compared to a pull strategy which is more consumer-oriented.

Review Questions

• Explain how a push strategy differs from a pull strategy in the context of promotion and distribution.
  • A push strategy focuses on encouraging channel intermediaries, such as wholesalers and retailers, to stock and promote the product, making it more accessible and visible to the end-consumer. This is typically done through trade promotions and incentives targeted at the intermediaries. In contrast, a pull strategy focuses on creating demand from the end-consumer, who then 'pulls' the product through the distribution channel. A pull strategy is more consumer-oriented, while a push strategy is more supplier-oriented.
• Describe the role of channel intermediaries in the success of a push strategy and the types of trade promotions used to incentivize them.
  • Channel intermediaries, such as wholesalers and retailers, play a crucial role in the success of a push strategy. Manufacturers or producers often use trade promotions to incentivize these intermediaries to actively stock and promote their products. Examples of trade promotions include discounts, co-op advertising, and sales force support. These incentives encourage channel intermediaries to devote shelf space, marketing efforts, and sales support to the manufacturer's products, ultimately making them more accessible and visible to the end-consumer.
• Analyze the circumstances in which a push strategy may be more effective than a pull strategy, and vice versa, in the context of product introduction and distribution.
  • A push strategy is often more effective for new product introductions, where the manufacturer needs to build awareness and distribution among retailers and wholesalers. By focusing on incentivizing channel intermediaries, the manufacturer can ensure their products are stocked and promoted, increasing the chances of reaching the end-consumer. In contrast, a pull strategy may be more effective for established products, where the manufacturer can focus on creating demand from the end-consumer, who then 'pulls' the product through the distribution channel. The choice between a push or pull strategy ultimately depends on the stage of the product lifecycle, the target market, and the dynamics of the distribution channel.

Related terms

Pull Strategy: A pull strategy is the opposite of a push strategy, where the manufacturer or producer focuses on creating demand from the end-consumer, who then 'pulls' the product through the distribution channel.

Channel Intermediaries: Channel intermediaries are the middlemen in the distribution channel, such as wholesalers, distributors, and retailers, who help move products from the manufacturer to the final consumer.

Trade Promotions: Trade promotions are marketing activities and incentives targeted at channel intermediaries, such as discounts, co-op advertising, and sales force support, to encourage them to stock and promote the product.