Push And Pull Strategies
Manufacturers need consumers to buy their products and consumers need somewhere to buy products from. This means that manufacturers not only need to persuade consumers to buy their products but also have to persuade retailers and wholesalers (the distribution chain) to stock their products. Manufacturers use push and pull strategies to persuade the distribution chain to stock their products and services.
A push strategy is where the manufacturer concentrates their marketing effort on promoting their product to the next party in the distribution chain (retailer or wholesaler), to convince them to stock their products.
A combination of promotional mix strategies may be used including:
- Representation at trade shows,
- Business to business selling
- Mail shots to the distribution chain
- Incentives for the retailer to display the product on a key shelf in their stores
- Bulk buy discounts
- Distribution chain allowed extended credit or a long period of time to pay invoices
- Contributing towards the retailer/wholesaler's promotion costs
- Incentives for the retailer/wholesaler's sales team to sell the manufacturer's products
The diagram below shows the distribution chain parties which will be targeted during push strategy sales campaigns.