Push and pull strategies are two contrasting methodologies in promotional strategy.
A push strategy involves pushing from manufacturers to distributors, retailers, and consumers.
On the other hand, a pull strategy uses advertising etc. to elicit consumers’ desire to buy.
However, the two are not contradictory, and it is important to use them in a well-balanced manner. In this article, we will explain the differences between push and pull strategies and provide specific examples.
What is the difference between push strategy and pull strategy?
Push and pull strategies are two contrasting methods of promotional strategy.
A push strategy is a type of promotion strategy in which manufacturers actively appeal to distributors, distributors to retailers, and retailers to consumers to promote their products.
It is called a “push strategy” because it has the image of pushing out.
On the other hand, a pull strategy stimulates consumer demand through advertising and other means, and invites customers to buy on their behalf.
It is called a “pull strategy” because it has an image to draw out.
In this way, the difference between a push strategy and a pull strategy lies in the direction of pushing out or pulling out from consumers.
However, the two are not contradictory, and it is important to use them in a well-balanced manner.
Let’s take a closer look at push and pull strategies below.
Specific examples of push strategies
Let’s look at a concrete example of a push strategy.
A push strategy typically involves manufacturers working with distributors, distributors working with retailers, and ultimately retailers pushing the product to consumers.
Specific examples of such cases are as follows.
- Financial support using promotional expenses
- Product explanation and sales method guidance
- Dispatch of sales staff to stores
- Providing/increasing sales rebates
By doing these things, the push strategy strengthens the sales power of distributors and retailers and increases their motivation to sell.
Push strategies can also be carried out by manufacturers directly to consumers. A specific example of that case is as follows.
- telemarketing
- DM
- mail order program
These methods are basically an “opt-out” method in which advertisements are sent without the patient’s prior consent.
However, with regard to e-mail, opt-out e-mail advertising was prohibited under the Specified E-mail Law of 2008.
Along with this, consumers’ awareness of personal information has also increased.
Even when using methods other than email, it is necessary to use opt-out push strategies carefully to avoid damaging your brand image.
Evaluation criteria when implementing a push strategy
The criteria for determining whether to use a push strategy are as follows:
- Low brand awareness
- Product awareness is low due to new products, etc.
- Differentiation of own brand from competitors is not yet clear
In such cases, even if you run large-scale advertisements, you cannot expect a response.
You need to reach out to consumers directly and tell them more about your brand and products.
Examples of pull strategies
Specific examples of pull strategies that create mechanisms that make consumers want to buy include the following.
- TV commercial
- Advertisements on the web, newspapers, magazines, town magazines, etc.
- Disseminating information on SNS
- content marketing
- Reviews
Pull strategies use these methods to improve a company’s brand image and increase product awareness.
The aim is to make consumers feel like they want to buy, and to have them make a nominated purchase at a retail store.
Evaluation criteria for implementing a pull strategy
The evaluation criteria for deciding whether to implement a pull strategy are as follows:
- The brand already has some recognition
- Brand differentiation from competition is clear to some extent
- It has been a while since the product was released, and the product has gained some recognition.
In these cases, a pull strategy is effective because you don’t have to explain your brand or product in detail.
How to use push and pull strategies
Push and pull strategies are not mutually exclusive.
It is important to use them in a well-balanced manner.
Cosmetics manufacturers actively utilize pull strategies, such as running large-scale TV commercials when launching new products.
At the same time, retail stores implement push strategies in which sales staff provide detailed instructions on how to use cosmetics directly to consumers.
Automobile manufacturers, like cosmetics manufacturers, also use a pull strategy of running extensive TV commercials for new cars.
At the same time, dealers use push strategies to deepen their understanding of products through detailed explanations and test drives.
When a product has just been released, awareness and understanding of the product has not yet increased, so it is necessary to actively implement a push strategy.
As time passes and consumer awareness of the brand and product increases, it is possible to shift to a pull strategy.
summary
◆ Push strategy involves pushing products from manufacturers to distributors, retailers, and consumers.
◆ Pull strategy uses advertising etc. to elicit consumers’ desire to buy.
◆ Push and pull strategies are not contradictory, and it is important to use them in a well-balanced manner.