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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***