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

Push StrategyPull StrategyFactors Influencing in deciding Push/PullDifference between Push Vs PullPush ToolsPull ToolsConclusion

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 CategoryConsumer Behaviour in the category and the interactionCompetition promotion Marketing spends andEffectiveness of different options in the category

Manufacturer or service provider

Distributor

Retailer

Customer

P

U

S

H

P

U

L

L

Distributor

Retailer

Customer

By personal selling, discounts & deals

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 promotionFor 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 serviceFor example, advertising children's toys on children's television shows is a pull strategy.

Dealers allowances, Price-offs and discountsDisplays and Point of Purchase Increasing trade promotions and incentivesSamples and Free GoodsBuy-Back GuaranteesIncreasing margins and pushing it to the retailersDealer Meetings and Contests Provide more credit extensions, etc

Sampling in-store, events, newspaper, in-packValue Promotions, Volume PromotionsContinuity and Loyalty ProgramsSLO (Self-Liquidating Offers/Premiums)Point of Purchase DisplaysContests, Games and SweepstakesRebates and Cash refundsUtilizing 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."