Push- and pull marketing – digital
The goal of every company should be to sell products or services to their customers. Finding the right sales strategy to reach this goal might be difficult for some companies. In general, there are two marketing approaches that can be used: the pull method and the push method. This article is going to explain the difference between them and point out which one is suited best for your company.
Push vs. pull
Push and pull marketing are two opposite methods. However, one method does not automatically rule out the other one. With the right implementation, both of them can contribute tremendously to a company. By using the push strategy, a manufacturer is offering his products to customers through intermediaries. In other words, he is trying to “push” his products into the market by providing rebates and other discounts to the intermediary. On the contrary, the pull method is first trying to generate consumer demand with the help of various advertising efforts. The customer is then supposed to ask the intermediary for the product. Therefore, the consumers are “pulling” on the supply chain and the intermediary is forced to include the product in his product range.
Opportunities associated with the push strategy
The push strategy is best suited for new products and small to medium-sized enterprises, that are not yet established in the market. Pull marketing would be of no use in this case because the customer does not know the product or the company yet. It is more difficult to convince consumers to ask for the product on their own than to persuade intermediaries with discounts to put the product on their shelves. Often the push strategy is less expensive since the effort is not that big. The intermediary has great interest in selling the product, too, because he has an elevated inventory level. That is why he is going to draw the customer’s attention to the product. Thus, the push strategy is creating demand and generating fast results.
Opportunities associated with the pull strategy
While the push strategy is more concerned with short-term results, the pull method is trying to generate long-term customer loyalty. The focus lies on direct contact and communication with the consumers in order to commit them to the company. Pull marketing is best suited for large-scale companies and luxury items because the manufacturer needs to put a relatively large amount of money into advertising. However, the investment will pay off since the customers will ask for the product on their own. The intermediary is responding to this demand by buying the product from the manufacturer without any discount.
Today’s business world is full of companies that have successfully implemented one or even both strategies. For example, the push strategy is used by perfume manufacturers. Discounts are given to intermediaries when a new product is introduced to the market, so that they will include the product in their product range. Pull marketing is not the right option because the customer is not going to ask for a fragrance he was never in contact with. Well-established beverage producers, however, can benefit from using the pull strategy. TV and online advertising will increase consumer demand. As a result, the consumer is going to ask for the product in stores or cinemas. Demand will be higher than the supply, and that is why intermediaries are going to buy more products from the producers.
How to implement push and pull marketing digitally? There are unlimited tools for all kind of use cases. The most important thing is, that the Enterprise Architecture manages these tools – and controls them effeciently. With this, the effectiveness of the corresponding tools and channels can be evaluated according to Key Performance Indicators (KPIs). So it would be possible to get an overview of the price-performance ratio of the corresponding measures. We support you in consultancy about which tools can be used for which use case. Additonally we provide support in the implementation of push and pull marketing in your Enterprise Architecture.
Whether you should use the push or the pull strategy highly depends on your company and type of products. The best method would be using both approaches because they complement each other. You could generate immediate demand with help of the push strategy and simultaneously create long-term customer loyalty through the pull strategy. Let the BusinessTech-Company advise you on how to use one or even two strategies digitally in your company. Our experts will guide you through the whole process of implementation.