Push strategy

The push strategy is a marketing strategy based on pushing, that is, actively promoting the product and pushing it through all the links in the distribution chain. The push strategy accompanies the intensive distribution and means urging the distribution channel participants to sell and promote the manufacturer's offer, i.e. the so-called pushing it through the channel. This strategy is most often used in relation to common products, little differentiated in terms of both price and quality, as well as non-distinctive brands.

The push strategy was proposed by Philip Kotler as one of two (along with the pull strategy) general concepts of running promotional activities. The pressing strategy is characterized by the fact that the producer, as the sender of the message, undertakes promotional activities for distribution channel intermediaries, i.e. wholesalers and retailers, in order to convince them to purchase the product and promote it among the next sales links.

Formulating a promotion strategy requires taking appropriate actions, which include:

• choosing the purpose of the promotion (informing, reminding, urging)
• defining the recipients of the promotional message (consumers, wholesalers, retailers, opinion leaders)
• choice of media (radio, television, press, Internet, posters, etc.)
• choice of information method, including: development of promotional materials and preparation of advertising materials.

The adoption of the push concept is associated with the selection of promotion system tools by which the company influences the market. The main instruments directly affecting the product are personal sales and sales promotion, which are aimed at increasing the attractiveness of the product, through exhibitions and product demonstrations or using instruments accompanying the product, as in the case of premium sales.

Push strategy in the production process

The push strategy in controlling the production process is based on the central planning and scheduling of production. Material requirements planning and stock replenishment is based on material balance and detailed plans based on demand forecasts, defined product structure, current and planned information, inventory levels and production status in progress as well as the overall production plan.

Examples of Push strategy

• Advertising campaigns: Advertising campaigns are one of the most popular and effective ways of implementing a push strategy. This involves creating campaigns that target consumers directly and encourage them to buy the product. For example, a company could create an ad campaign that focuses on the benefits of their product or service and how it will improve their customers’ lives.
• Trade promotions: Trade promotions are another common way of implementing a push strategy. This involves offering discounts, coupons, or other incentives to retailers and distributors in order to encourage them to carry the product and promote it to their customers. For example, a company could offer a discount on a bulk order of their product to a retailer in order to encourage them to carry it in their store.
• Sampling: Sampling is another form of push strategy. This involves giving out free samples of a product in order to introduce it to potential customers. This can be done through promotional events, such as in-store demos, or through direct mailing campaigns. For example, a company could give out free samples of their product at a local fair to encourage people to try it and hopefully purchase it.

Advantages of Push strategy

A push strategy has several advantages, which include:

• Increased sales: A push strategy focuses on actively promoting the product through the distribution channel, which can result in increased sales. This is especially true for products which have little differentiation in terms of price and quality.
• Greater market penetration: The push strategy can help to penetrate deeper into existing markets, as it encourages distributors and retailers to stock the product.
• Expansion into new markets: The push strategy can also be used to expand into new markets, as it encourages distributors and retailers to promote the product to new customers.
• Improved brand visibility: By actively promoting the product, the push strategy can help to improve the visibility of the brand, which can lead to improved customer loyalty.

Limitations of Push strategy

• The push strategy can create an imbalance in the supply chain by overstocking merchandise. This can lead to excessive inventory, which ties up the company's capital and can lead to excess supply and decreased demand.
• The push strategy can be costly and time-consuming, as it requires significant resources to ensure effective promotion and distribution of the product.
• By relying solely on the push strategy, a company may miss out on opportunities to reach new markets and customers. This can limit the potential for growth and limit the potential for sales and profits.
• The push strategy can be difficult to sustain in the long term due to the competitive nature of the market. Companies must continuously invest in promotional activities and distribution channels to stay ahead of the competition.
• The push strategy can also be difficult to measure in terms of effectiveness. It can be difficult to accurately track the success of the strategy and determine whether it is having a positive impact on sales and profits.

Other approaches related to Push strategy

A Push strategy is not limited to just active promotion of the product. Other approaches related to the Push strategy include:

• Sales Promotion: Sales promotion is an important tool used to motivate customers and increase sales. It includes various activities such as discounts, coupons, free samples, contests, and loyalty programs, among others.
• Direct Selling: Direct selling involves directly selling the product to the customer without any intermediary. This strategy is often used when it is difficult to reach potential customers through conventional distribution channels.
• Personal Selling: Personal selling is a specialized form of selling in which salespeople build relationships with customers and use persuasive tactics to convince them to buy the product.
• Trade Shows: Trade shows are events where companies showcase their products and services to potential buyers.

In conclusion, a Push strategy is an important part of a marketing mix, as it helps to promote a product or service, increase sales, and build relationships with customers.

Push strategy — recommended articles

Goals of marketing — Promotion mix — Public relations in marketing — Incentive marketing — Selling process — Buzz marketing — Promotion strategy — Pull strategy — Differentiated marketing strategy

References

• Borden, N. H. (1964). The concept of the marketing mix. Journal of advertising research, 4(2), 2-7.
• Varadarajan, P. R., & Jayachandran, S. (1999). Marketing strategy: an assessment of the state of the field and outlook. Journal of the Academy of Marketing Science, 27(2), 120-143.
• Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Journal of marketing, 21(1), 3-8.