The management of business logistics (Coyle, Bardi, Langley, 1992) Logistics environments
Marketing people often classify their promotion strategies into two basics categories: push or pull. Thus, they can try to “push” products through the distribution channel to the customers, or just “pull” it through. In pull strategies, companies can try to improve their sales by setting national advertising. This can be achieved by using many kinds of media, such as magazines, radio or television. The purchases will probably influence the retailer, and the retailer will influence the wholesaler. Many companies believe that the best way to promote a product is to pull it through the distribution channel, stimulating demand at the customer level. In push strategies, companies work together with the channels of distribution to stimulate customer sales. This means that, retailers or wholesalers often pay part of local advertising costs or implement special store display to stimulate sales. A manufacturer could cooperate with the wholesaler in order to offer retailers special price to stimulate product demand. In this kind of strategy, is very important to cooperate with the channel of distribution. Many companies implement both push and pull strategies. From the point of view of logistic managers, a push approach may be more desirable, because a pull strategy could lead to a strong demand that could cause some problems. It is important to act in coordination with logistics managers, in order to manage better any emergency situation. A push approach, however, often has a more orderly demand pattern, due to its more orderly filling of the “pipeline” in preparation for sales.
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