Download Distribution Strategies

Distribution Strategies
Businesses must figure
out the best way to deliver
a product or service to the
target market.
1) Push Strategy
 Sells the product to retailers,
importers, or wholesalers
 Products and services are not
sold to end-use consumers
Why/How
If the product is out there
where consumers can see
it – they will buy it
 The Marketer must focus all of
the promotional activities on the
distributor (usually retailer)
 The Marketer hopes to
convince the distributor to
display the product prominently
in the store
 Buying incentives such as
discounts, prizes, samples,
product knowledge seminars
are used
This strategy is used mostly for
unglamorous goods (INDUSTRIAL
GOODS) that people don’t know
much about and only buy when
they need them
Examples: Candles, Glue, Steel
brackets, etc
2) Pull Strategy
 Attempts to increase consumer
demand directly, rather than rely
on retailers to sell the product to
the customer
 Attempt to convince consumers
that they need a certain item and
that their “Brand” is the best
 If the strategy works, consumers
will look for a certain product until
they find it
Why/How
The Pull strategy requires a major
advertising and promotional effort
Almost all of the advertising and
promotions we see as consumers
are part of Pull strategies
Examples: Jeans, Soft Drinks,
Shoes, Food (CONSUMER GOODS)
*** The one major disadvantage of the Pull
Strategy is that it is very expensive and also
requires the co-operation of retailers***
***The one major advantage of the Push
Strategy is that it can stand alone***