Getting Multi-Channel Distribution Right

CHAPTER 2Push, Pull, and Total Channel Performance

2.1 INTRODUCTION

Suppliers use independent resellers and other channel partners because they would not be able to effectively or efficiently perform all the functions needed by consumers in a fully vertically integrated system. Yet, they must work together if their individual efforts are to generate sustainable revenue and profit for the system.

A fundamental concept in channel management is the separation of marketing efforts and effects into “push” and “pull.” Suppliers' “pull” marketing efforts are aimed directly at creating demand among consumers, while their “push” marketing efforts focus on convincing independent resellers to stock and promote the product to consumers. We believe that these two complementary concepts are absolutely essential to understanding marketing in general and channel management in particular. As marketers, we are accustomed to using these terms in everyday conversations and writing. However, operations and supply chain professionals also use the same two words, but with somewhat different meanings. More recently, digital advertisers have adopted them too, and almost reversed the “original” marketing definitions.¹These other usages of push and pull do not require the presence of a reseller, whereas marketing's usage is almost entirely applicable only to marketing systems that rely on resellers. In both those settings, there is also a negative connotation to “push” that doesn't exist in the marketing ...