What is Push?
In push marketing, a company tries to push its products through the distribution
channel. It advertises to intermediaries, such as wholesalers and retailers, who
then try to generate demand from end users. Sometimes, companies may push
information and promotional material directly to end users through email or
fliers to generate demand
a All private labels send mobile SMS for any
new offer and discount.
b Push marketing reaches potential customers
A company could create an email database
of potential customers and send them
product announcements and promotions
Supermarkets often employ push promotional tactics by giving away samples of new products.
What is Pull?
In pull marketing, the company tries to draw in customers through different
kinds of advertising, such as TV ads, online banner ads and social media. Some
companies use both push and pull marketing to generate demand.
A more creative pull marketing strategy might be to advertise
in social media literary forums and build online communities
A company could create an email database of potential
customers and send them product announcements and
Grocery stores often advertise leader items in the weekend
fliers to attract customers hoping that they would then buy
some of the higher-priced items.
d Online banner ads, and radio and TV ads are other forms of
Push marketing is so-named because suppliers effectively try to push their
products through the distribution channel by inducing their buyers to purchase
them for resale. Trade buyers generally want to buy at a low price, add a
markup and resell to their buyers to earn a profit. When a manufacturer offers
a wholesaler a sales promotion or a volume discount, it enables the wholesaler to
earn a higher profit margin if it can resell effectively to retailers. Wholesalers
can then offer similar inducements to retailers to give them profit advantages.
Pull marketing is so-named because marketers try to stimulate demand at the
end customer level by promoting the benefits or value of products to
consumers. This includes brand building advertising as well as consumer sales
promotions that given consumers a better price for the same benefits. The
premise is that if end customers demand products in the marketing place, all
businesses in the distribution channel benefit because of strong demand and
likely higher price points.
Push and pull marketing both rely on conveying benefits to customers.
Using Push and Pull
A company may use both push and pull marketing to
drive sales growth.
1. A major commercial insurance company, uses push
marketing to create awareness in a new or existing
product, and then targets banner ads to pull in
customers when they search online for more
information on the product. 2.
2. A pizza restaurant may use newspaper ads to pull in
customers and fliers to push information about its
menus directly into customer mailboxes.
What is pull marketing?
Pull marketing is where you develop advertising and promotional strategies that
are meant to entice the prospect to buy your product or service. Some classic
examples are "half off!" or "bring in this coupon to save 25%" or "buy one get one
With pull marketing, you are trying to create a sense of increased, time limited
value so that the customer will come into your store to buy.
What is push marketing?
Push marketing is where you develop advertising and promotional strategies geared
toward your marketing and distribution channels to entice them in promoting your
product. As consumers, you rarely see this type of marketing when it is directed to
the distributors. It might include wholesale discounts, kickbacks, bonuses, and other
types of support. It's all designed to have the retailer promote your product to the
end users over a different product.
When companies encourage happy customers to spread the word to their friends and
families, that's a type of push marketing. Or, when companies make ads that are
controversial, cheeky, or downright shocking, they create a little buzz - that's
another type of push marketing.
Advertising as Both Push and Pull
Retailers and manufacturers sometimes cooperate in joint advertising
campaigns, utilizing both push and pull strategies. A manufacturer may push a
new product, for example, along with a retailer by both agreeing to pay for TV
and print ads promoting the new product as
Advertising can be viewed as both a push and a pull retailer strategy. Ads
attempt to pull the customer into the store, ideally asking by name for the
very products that appeared on TV or in newspaper ads.
But the technique also pushes a manufacturer's products directly to
consumers. In addition, TV commercials that create buzz --- annual Super
Bowl ads are a good example --- often provide good word-of-mouth push
advertising while simultaneously creating a pull-advertising effect on
recipients of such second-hand renditions. Retailers utilizing a push-pull
strategy must divide their efforts and money between promotions and end-
user advertising, according to "Marketing Help!"
"available at Retailer X now."
Difference Between Promotional Push Strategies & Promotional Pull Strategies?
Push versus pull are two prominent marketing strategies used by companies to market their
Pull marketing means marketing to end customers to create demand, while
push marketing means enticing trade buyers to purchase and carry your
product by offering promotions and price inducements that give them better
To understand the implications of push and pull marketing you need familiarity with
the distribution or trade channel. This is the systematic process products typically
go through as they flow from initial product and development at the manufacturing
level to final purchase at the consumer level. Along the way, distributors
traditionally buy products from manufacturers and resell them to retailers.
Retailers then hold products in inventory and offer them for sale to the end
1. A pull strategy has the
communication directed at the
end users — primarily
2. a pull strategy directs
promotion at the end consumer
3. most consumer products
would rely more heavily on a
pull strategy where promotion
is directed at the consumer to
1. A push strategy is directing
the communication primarily at
the middlemen that are the
next link forward in the
2. a push strategy directs
communication efforts at
3. many products, such as
business products, are
promoted with a push
strategy, involving personal
selling and use of trade
Push and Pull Manufacturing
Push type" means make to Stock in which the production is not based on
actual demand. "Pull type" means make to Order in which the production is
based on actual demand. In supply chain management, it is important to
carry out processes halfway between push type and pull type or by a
combination of push type and pull type.
Pull type production or Make to order
MTO (Make to Order) is a manufacturing process in which
manufacturing starts only after a customer's order is received.
Forms of MTO vary, for example, an assembly process starts
when demand actually occurs or manufacturing starts with
Manufacturing after receiving customer's orders means to start a
pull-type supply chain operation because manufacturing is performed
when demand is confirmed, i.e. being pulled by demand. The opposite
business model is to manufacture products for stock MTS (Make to
Stock), which is push-type production. There are also BTO (Build to
Order) and ATO (Assemble To Order) in which assembly starts
according to demand.
Assembling after receiving a customer's orders is "ATO (Assemble
To Order)" and starting with development designing is "ETO
(Engineer To Order)". Construction by general contractors and plant
construction by engineering companies are categorized as ETO.
From the viewpoint of supply chain management, it has been proven that those who can satisfy
due dates promised with customers and can shorten lead times will have an competitive
advantage. Even if the production quantity increases, if push-type products that are manufactured
by MTS can be manufactured by pull-type production such as MTO and ATO models using SCM
software or information technology, then there will be greater business opportunities.
ATO (Assemble to Order) of computers by Dell Inc. and production of sports bicycle by National
Bicycle Industrial Co., Ltd. are examples of creating a new business model by matching the
diversification of products with ATO, BTO, ETO, and with new-style marketing.
National Bicycle Industrial Co., Ltd. says
"We can deliver a custom-made bicycle to you within two weeks."
Solectron Corporation says
"We can assemble the computer you requested and deliver it within a week."
These are examples of business models in which new supply chain models are created as
Pull type production or Make to order
Pull-type production, such as MTO, BTO, ATO, and ETO, is a business model of the assembly
industry in which the quantity to produce per product specification is one or only a few.
For example, construction, plant construction, aircraft, vessels, bridges, and so on.
Make to Stock: In MTS (Make to Stock); products are manufactured
based on demand forecasts. Since accuracy of the forecasts will prevent
excess inventory and opportunity loss due to stock out, the issue here is
how to forecast demands accurately.
MTS (Make to Stock) literally means to manufacture products for stock
based on demand forecasts, which can be regarded as push-type
production. MTS has been required to prevent opportunity loss due to
stockout and minimize excess inventory using accurate forecasts. In the
industrialized society of mass production and mass marketing, this
forecast mass production urged standardization and efficient business
management such as cost reduction.
Manufacturer Wholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
Product flow Communication effort