A channel partner term that is used to describe how products and services move through channel partners to the consumer. A push strategy uses marketing channels, such as trade promotions, to "push" a product or service through to the sales channel. Push strategy is one of several types of channel strategies.
The business terms push and
pull originated in logistic
and supply chain management,[2] but are
also widely used in marketing.
Another meaning of the push strategy in marketing can be found in the
communication between seller and buyer. Depending on the medium used, the
communication can be either interactive or non-interactive. For example, if the
seller makes his promotion by television or radio, it's not possible for the
buyer to interact. On the other hand, if the communication is made by phone or
internet, the buyer has possibilities to interact with the seller. In the first
case information is just "pushed" toward the buyer, while in
the second case it is possible for the buyer to demand the needed
information according to their requirements.
- Applied to that portion of the supply chain where demand uncertainty is relatively small
- Production and distribution decisions are based on long term forecasts
- Based on past orders received from retailer's warehouse (may lead to Bullwhip effect)
- Inability to meet changing demand patterns
- Large and variable production batches
- Unacceptable service levels
- Excessive inventories due to the need for large safety stocks
- Less
expenditure on advertising than pull strategy