What is a Push Marketing Strategy?
A push marketing strategy, also called a push promotional strategy, refers to a strategy in which a firm attempts to take (“push”) its products to consumers. In a push marketing strategy, the goal is to use various active marketing techniques to “push” their products to be seen by consumers starting at the point of purchase.
Push marketing strategies are usually used to gain product exposure. Once a product becomes established in the market, a pull marketing strategy is used.
Examples of Using a Push Marketing Strategy
In a push marketing strategy, the firm takes the product to consumers. The consumers are unaware or actively seeking the product, but is introduced to it through several push marketing methods:
- Direct selling to customers in showrooms
- Point of Sale displays (POS)
- Trade show promotion
- Packaging designs to encourage a purchase
Illustration of a Push Marketing Strategy
A push marketing strategy is illustrated as follows:
As illustrated above, a push marketing strategy involves using marketing activities to push a product to consumers.
With reference to the illustration above, a production company may try to convince a retailer to stock its product. Once the retailer stocks the product, the retailer pushes the products to consumers at a slight markup, who purchases them.
A push marketing strategy can be contrasted with a pull marketing strategy, where marketing activities are done directly to consumers.
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Practical Example of a Push Marketing Strategy
Colin recently launched a new product – the Fanner 3000. After spending months in the hot weather of Hong Kong, Colin developed an innovative fan product that emits no sound, is priced competitively, is energy efficient, and is able to cool the room to a determined temperature.
To market this product, Colin convinces major retailers to stock this product and prepares to present and sell his product at an upcoming trade show. Creating visibility is a top priority, so Colin manages to persuade the major retailers to display the Fanner 3000 near check-out counters. In addition, he ensures that his product is stocked and abundant as customer demand rolls in.
Advantages of a Push Marketing Strategy
- It is useful for manufacturers that are trying to establish a sales channel and are seeking distributors to help with product promotion.
- It creates product exposure, product demand, and consumer awareness about a product.
- Demand can be forecastable and predictable as the producer is able to produce and push as much or little product to consumers.
- Economies of scale can be realized if the product is able to be produced at scale due to high demand.
Disadvantages of a Push Marketing Strategy
- It requires an active sales team that is able to work/network actively with retailers and distributors and establish relationships.
- Poor negotiating power with retailers and distributors; the producers are the ones asking retailers to stock their products.
- Demand may not exist among retailers, wholesalers, or consumers; the producer may be left with products that they are unable to distribute.
- It requires demand forecasting, which can be hard in a fast-moving market where consumer preference changes quickly.
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