The two business terms push and pull come from the field of logistics (also the term pull principle is used in lean management) and supply chain management, but can also be found extensively in various sub-areas of marketing. In the field of marketing, this refers to two opposing strategies for selling goods (or service) on a market. Under certain conditions, both strategies can be combined. An optimal push-pull mix depends on the product type, customer experience, length of distribution channel, and media availability.
A push strategy is used when a good is unknown to the consumer and the benefits that this good provides must be signalled. An example of this would be a new perfume. The consumer does not know in advance which perfume he/she prefers, but can only make a decision when he has information such as smell samples in advance. Companies try to reduce information asymmetries through signaling, i.e. advertising and other measures in sales promotion (e.g. use of sales displays). In the case of push strategies, there is a latent need in the consumer, which can be transformed into a conscious need or demand (demand with purchasing power) through marketing measures – such as aggressive pricing policy or personal selling. Another example of a push strategy in the field of advertising is direct mail. The consumer receives information or services from the company (purchase on a trial basis) without there being an open need beforehand. New products in an existing market as well as goods that require particular explanation (e.g. capital goods) are also introduced with push strategies. Even in the case of long sales channels, push strategies are used in the absence of brand awareness by addressing consumers in the form of sales promotion via retailers.
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In the pull strategy, the company uses screening to strategically align its offering with consumer demand. The pull strategy targets the consumer who is supposed to buy a product. The manufacturer builds up an image and brand awareness and exerts pressure on the trade through the consumer by asking the customer for the product. Retailers are then forced to carry this product in their product range if there is sufficient demand. Marketing measures that are intended to encourage retailers to sell the goods are only used subordinately or not at all. In this context, a pull strategy is also used when the products are advertised via mass media (so-called media pre-sales) and are thus actively demanded by the customer in the trade. Most of the time, only larger companies can afford to follow the pull strategy by investing significant amounts in branding and thus creating consumer demand for their products; this then acts as a suction on the product in the distribution system.
