A pull strategy involves advertising and creating demand among consumers, while a push strategy involves shipping products to stores with the hope that consumers will buy them. The distinction is not always clear-cut, but a pull strategy is more appropriate when unsure about demand. The terms originate in supply chain management.
A pull strategy is a type of marketing and advertising. It works by getting customers to actively search for a brand or product. Contrast this with a push strategy where the goal is to get the product to places where it will be seen by shoppers and bought as an impulse buy. The two terms originate in supply chain management.
The main difference between the two strategies is the sequence of events that lead to a sale. With a push strategy, the product is normally shipped to stores with the intention that consumers will see it and decide to buy it. With a pull strategy, there is more emphasis on advertising and similar techniques to create demand among consumers. This demand therefore requires retailers to order stock from suppliers, who in turn order product from the manufacturer.
A good example of the difference between a push strategy and a pull strategy is the book industry. Traditional book publishing, where books are printed en masse and then stocked on bookstore shelves, is largely a push strategy. Print-on-demand, where books are printed to order as and when a customer wishes to purchase one—an increasingly common method for books primarily sold online—is largely a pull strategy.
In many cases, the distinction is not that clear-cut. For example, a new breakfast cereal can be launched using either strategy. The advertisement will entice consumers to visit a store with the intention of buying the product. At the same time, prominent in-store displays and high levels of inventory can boost sales among consumers who were previously unaware of the product.
A pull strategy incorporates most traditional advertising such as television and radio commercials or newspaper advertisements. It also incorporates methods like boosting word of mouth or building brands online. A push strategy is more aimed at retailers and persuading them that the product will be successful, in order to stock it and raise consumer awareness at the point of sale.
While most promotion uses both strategies, a pull strategy is more appropriate when in doubt about the demand for the product. The response to the advertisement will give a better idea of the stock levels stores will need. Using a push strategy may be cheaper to run, but involves a bigger gamble as the producer has to supply a certain level of inventory even before they know what the demand will be.
The two terms were initially used in supply chains. In this context, the terms refer to the “force” that drives a product along the chain. A pull system means that consumers generate demand, which stimulates production. A push system creates products in the hope that they will generate demand.
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