Presented By: Manish Ranjan Singh (MBA) BVDU, IMED, Pune

Push Strategy Pull Strategy Factors Influencing in deciding Push/Pull Difference between Push Vs Pull Push Tools Pull Tools Conclusion

A push promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

Producer

Wholesaler

Retailer

Customer

A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Mobile stores, Nokia priority etc. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes.

A pull selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
Producer Wholesaler Retailer Customer

A good example of a pull is the heavy advertising and promotion of children's toys mainly on children television program. The children ask their parents for the toys, the parents ask the retailers and the retailers the order the toys from the manufacturer.

In general, both PUSH and PULL strategies are used in combination to achieve the objective.
Product Category
Consumer Behaviour in the category and the interaction Competition promotion Marketing spends and Effectiveness of different options in the category

Manufacturer or service provider

P
Distributor

P U
Distributor

Retailer

S
H

L
L

Retailer

Customer By personal selling, discounts & deals

Customer By mass advertising & sales promotion

Push Strategy
All promotional efforts are directed towards pushing the product through the channels of distribution. A push promotional strategy works to create customer demand for your product or service through promotion For example, through discounts to retailers and trade promotions.

Pull Strategy
All promotional efforts are directed towards the final consumer so they will pull the product to themselves. A pull promotional strategy uses advertising to build up customer demand for a product or service For example, advertising children's toys on children's television shows is a pull strategy.

Dealers allowances, Price-offs and discounts Displays and Point of Purchase Increasing trade promotions and incentives Samples and Free Goods Buy-Back Guarantees Increasing margins and pushing it to the retailers Dealer Meetings and Contests Provide more credit extensions, etc

Sampling in-store, events, newspaper, inpack Value Promotions, Volume Promotions Continuity and Loyalty Programs SLO (Self-Liquidating Offers/Premiums) Point of Purchase Displays Contests, Games and Sweepstakes Rebates and Cash refunds Utilizing Social media sites to build demand

Push strategy is appropriate where brand choice is made in store. Can be an impulse purchase and product benefits are understood. Pull strategy works best with involvement of customers, where customers look for product differences.

"Consumers are more participative and selective and the trend from Push to Pull is accelerating."