Posted in Marketing and Strategy Terms, Total Reads: 520
Definition: Push Marketing
This strategy uses the resources of the manufacturer, such as the sales force, money for trade promotion, and so on to persuade intermediaries such as wholesaler, retailer and/or distributor to reach, promote and sell the goods to the end consumer. This will be particularly effective in case that the product category has relatively low brand loyalty, brand choice is made at the point-of-sale, the product involves impulse purchase, and/or when the product benefits are understood well by the consumers.
Usually push strategy reaps better results when it is combined with a well-designed pull strategy. As the name implies, the companies are trying to push their offerings to the customer. The push strategy can be seen in company showrooms and at point-of-sale counters.
Sales incentives are given to retailers to improve product visibility and sales conversions. This strategy can work very well for products that have been recently introduced to the market and are yet to gain visibility or word-of-mouth.
In case of advertising media like the radio and the TV, the customers have no means of extracting the information they require. In these cases, the company pushes its products towards the customers. This can be effective when large inventory levels are the norm, demand uncertainty is less, long-term forecasts are made, production batch sizes are large and variable and the service levels are unacceptable. It involves lesser advertising expenditure than pull strategy because lesser efforts are required towards customer targeting and it uses mass media such as print, radio and TV.