Marketing is an essential part of any business. It is the process of promoting and selling products and services to customers. There are two primary marketing strategies: push and pull. In this article, we will focus on push strategy. We will discuss what it is, how it works, and its benefits and risks. We will also provide examples of push strategy in marketing and tips for implementing it.
What is a Push Strategy?
A push strategy, also known as a push marketing strategy, is a marketing technique in which a company promotes its products or services to distributors, retailers, or wholesalers. The goal is to convince them to stock and sell the products to customers. In other words, the company pushes its products directly to the intermediaries, who then push them to the end-users. Push strategy is often used when a company has a new product or wants to increase sales quickly. It can be effective when the company has a strong relationship with its intermediaries and can persuade them to carry its products. However, it can also be risky if the intermediaries are not interested in the products or if they are already carrying similar products from competitors.
Push Tactics in Marketing
There are several tactics that companies can use to implement push strategy in marketing. These include:
Sales Promotion
Sales promotion is a tactic that uses incentives, such as discounts, coupons, or free samples, to encourage intermediaries to promote and sell the products. For example, a company may offer a discount to a retailer who orders a certain quantity of products or provides free samples to customers who purchase a specific product.
Advertising
Advertising is a tactic that uses mass media, such as television, radio, or print, to promote the products to intermediaries. The goal is to create awareness and interest in the products and encourage the intermediaries to stock and sell them.
Personal Selling
Personal selling is a tactic that involves face-to-face communication between a company's sales representatives and intermediaries. The goal is to persuade the intermediaries to carry and promote the products. This tactic is often used for high-value or complex products.
Push Strategy Examples
There are many examples of push strategy in marketing. Some of the most common are:
Pharmaceutical Industry
Pharmaceutical companies often use push strategy to promote their products to doctors and hospitals. They provide sales representatives with samples and other incentives to persuade doctors to prescribe their products to patients.
Fast-Moving Consumer Goods (FMCG)
FMCG companies, such as Coca-Cola and Procter & Gamble, often use push strategy to promote their products to retailers and wholesalers. They offer discounts, promotions, and other incentives to persuade them to stock and sell their products.
Technology Industry
Technology companies, such as Microsoft and Apple, often use push strategy to promote their products to distributors and retailers. They provide training, marketing support, and other resources to persuade them to carry and promote their products.
Push vs Pull Strategy
Push strategy is often compared to pull strategy, which is a marketing technique in which a company promotes its products directly to end-users, such as consumers or businesses. The goal is to create demand for the products and encourage the intermediaries to stock and sell them. The main difference between push and pull strategy is the target audience. Push strategy targets intermediaries, while pull strategy targets end-users. Another difference is the approach. Push strategy is more aggressive and sales-oriented, while pull strategy is more customer-oriented and relationship-focused.
Benefits of Push Strategy in Marketing
Push strategy has several benefits for companies, including:
Quick Sales
Push strategy can generate quick sales by promoting the products directly to intermediaries who are already interested in selling them. This can be particularly useful for companies with new products or products that are in high demand.
Control over Distribution
Push strategy gives companies more control over the distribution of their products. They can choose which intermediaries to work with and how to promote the products to them. This can help them to maintain brand consistency and quality.
Lower Marketing Costs
Push strategy can be less expensive than pull strategy because it focuses on promoting the products to a smaller group of intermediaries rather than a larger group of end-users. This can be particularly useful for companies with limited marketing budgets.
Risks of Push Strategy in Marketing
Push strategy also has several risks for companies, including:
Dependence on Intermediaries
Push strategy relies on intermediaries to promote and sell the products. If the intermediaries are not interested or do not have the resources to do so, the strategy may fail.
Competition from Similar Products
Push strategy can be risky if the intermediaries are already carrying similar products from competitors. In this case, the company may need to offer more incentives to persuade the intermediaries to carry its products.
Less Customer Engagement
Push strategy focuses on promoting the products to intermediaries rather than end-users. This can result in less customer engagement and feedback, which can make it difficult for companies to improve their products and services.
Implementing Push Strategy in Marketing
To implement push strategy in marketing, companies should:
Identify Intermediaries
Companies should identify the intermediaries who are most likely to promote and sell their products. They should also consider the intermediaries' needs and preferences and tailor their promotion and incentives accordingly.
Provide Incentives
Companies should provide incentives, such as discounts, promotions, or free samples, to persuade intermediaries to carry and promote their products. The incentives should be attractive and relevant to the intermediaries.
Monitor Results
Companies should monitor the results of their push strategy and adjust their tactics if necessary. They should also collect feedback from intermediaries and customers to improve their products and services.
Conclusion
Push strategy is a marketing technique in which a company promotes its products or services directly to intermediaries, such as distributors, retailers, or wholesalers. It can be effective for generating quick sales and controlling distribution, but it also has risks, such as dependence on intermediaries and competition from similar products. Companies should carefully consider their goals, target audience, and incentives when implementing push strategy in marketing.