What is Promotional Strategy?
Promotional Strategy refers to different ways of promoting a particular brand / product or service to reach a target market. The promotional strategy falls into two categories: Push Strategy and Pull Strategy. Companies make a decision on whether to use Push or Pull or the combination to move their products or services through the channel of distribution.
What is Push Strategy?
A Push Strategy is directing marketing communication toward intermediary channel members to “push” a product or service through the channel to the ultimate consumer.
What is Pull Strategy?
A Pull Strategy concentrating marketing communication on consumers to stimulate demand in an attempt to get consumers to “pull” a product from the manufacturing company through the marketing channel.
What are the difference between a Push and a Pull Strategy?
Production Strategy
Push Strategy is more often adopted by traditional manufacturing system; however, it leads to over production. This is due to the production is carried out regardless of the actual demand in order to achieve high production efficiency. At the end of the day, various promotions such as discounts, trade promotion and personal selling come out to create the demand.
On the other hand, Pull Strategy is commonly used by lean manufacturing system which is nothing will produce until customer demand appears. The promotion events will come out first before the actual product being produced. A good example is car, generally the advertising show in TV or newspaper to introduce the new car to customer, when demand occur only the required amount is produced. As a result, the major different between these 2 strategies is their production ...