!["Push and pull" redirects here. For other uses, see Push and pull (disambiguation).
The image shows a technology push, mainly driven by internal R&D activities and market pull, driven by the external market
forces.[1]
[2]
The business terms push and pull originated in the logistic and supply chain management, but are also
[3][4]
widely used in marketing.
A push-pull-system in business describes the movement of a product or information between two
subjects. On markets the consumers usually "pulls" the goods or information they demand for their needs,
while the offerers or suppliers "pushes" them toward the consumers. In logistic chains or supply chains
[5]
the stages are operating normally both in push- and pull-manner. The interface between push-based
[5]
stages and pull-based stages are called push-pull boundary or decoupling point.
Contents
[hide]
1 Marketing
o 1.1 Push strategy
o 1.2 Pull strategy
2 Supply chains
3 Push Pull Music Marking Future
4 See also
5 References
[edit]Marketing
[edit]Push strategy
Another meaning of the push strategy in marketing can be found in the communication between seller
and buyer. In dependence of the used medium, the communication can be either interactive or non-](https://image.slidesharecdn.com/pushandpull-strategy-120302041103-phpapp01/85/Push-and-pull-strategy-1-320.jpg)
![interactive. For example, if the seller makes his promotion by television or radio, it's not possible for the
buyer to interact with. On the other hand, if the communication is made by phone or internet, the buyer
has possibilities to interact with the seller. In the first case information is just "pushed" toward the buyer,
while in the second case it is possible for the buyer to demand the needed information according to his
requirements.
Applied to that portion of the supply chain where demand uncertainty is relatively small
Production & distribution decisions are based on long term forecasts
Based on past orders received from retailer’s warehouse (may lead to Bullwhip effect)
Inability to meet changing demand patterns
Large and variable production batches
Unacceptable service levels
Excessive inventories due to the need for large safety stocks
less expenditure on advertising than pull strategy
[edit]Pull strategy
In a "pull" system the consumer requests the product and "pulls" it through the delivery channel. An
example of this is the car manufacturing company Ford Australia. Ford Australia only produces cars when
they have been ordered by the customers.
Applied to that portion of the supply chain where demand uncertainty is high
Production and distribution are demand driven
No inventory, response to specific orders
Point of sale (POS) data comes in handy when shared with supply chain partners
Decrease in lead time
Difficult to implement
[edit]Supply chains
Main article: Supply chain management
With a push-based supply chain, products are pushed through the channel, from the production side up to
the retailer. The manufacturer sets production at a level in accord with historical ordering patterns
from retailers. It takes longer for a push-based supply chain to respond to changes in demand, which can
result in overstocking or bottlenecks and delays (the bullwhip effect), unacceptable service levels and
product obsolescence.
In a pull-based supply chain, procurement, production and distribution are demand-driven so that they are
coordinated with actual customer orders, rather than forecast demand.](https://image.slidesharecdn.com/pushandpull-strategy-120302041103-phpapp01/85/Push-and-pull-strategy-2-320.jpg)
![A supply chain is almost always a combination of both push and pull, where the interface between the
[5]
push-based stages and the pull-based stages is known as the push–pull boundary. An example of this
would be Dell's build to order supply chain. Inventory levels of individual components are determined by
forecasting general demand, but final assembly is in response to a specific customer request. The push-
pull boundary would then be at the beginning of the assembly line.
[edit]Push Pull Music Marking Future
This section may require cleanup to meet Wikipedia's quality
standards. Please improve this section if you can. The talk pagemay contain
suggestions. (August 2009)
Many media and music futurists are speculating upon the change within the industry. The introduction
and success of social networking along with digital music has transformed and re-shaped the way music
is marketed to the consumer; shifting from a push to pull strategy. In media and advertising everything is
switching to pull. There is an eminent difference between the consumer receiving information from a push
strategy and a pull strategy. Push example; passive, the marketing campaign is in control of the message
being sent out and how it is received by potential customers. Pull example; active, the recipient of the
marketing campaign is in control of the message and their decision whether to act or not. Generally the
shift from push to pull has been viewed as a shift in power to the consumer away from advertisers and so
is bad news for marketers.
With the increase of social networking platforms and users, with emphasis to Facebook, social networking
has become a major and focal part to music marketing adopting the pull marketing strategy. Pull
marketing shifts the emphasis and attention onto the customer, the essential attribute is to market in the
correct places and knowing where and who the target audience are.
Consumers are increasingly customizing music platforms to better suit their individual needs. Rather than
relying on music companies or a DJ to pre-determine the mix of songs on a CD, an increasing number of
music listeners are downloading individual tracks and assembling their own sequence of songs. This
process is also being replicated with the creation of playliststhrough platforms such
as iTunes, Spotify and Last FM. Fan-built playlists and mixes are taking over the way people get their
music. Playlists are inevitably becoming a pull marketing resource that marketing alliances must embrace,
due to their ability to be share via Peer to peer networks. People are choosing what they want to hear
rather than having it pushed on them.
As consumers gain access to a greater number of options/platforms and more information about such
services, the consumer will probably become more demanding on resource providers. Requiring services
to be made available on consumers terms, when and where they want them, rather than when and where
it is convenient for the resource providers to deliver them. In addition, as mentioned above consumers are](https://image.slidesharecdn.com/pushandpull-strategy-120302041103-phpapp01/85/Push-and-pull-strategy-3-320.jpg)
Push and pull -strategy
- 1. "Push and pull" redirects here. For other uses, see Push and pull (disambiguation). The image shows a technology push, mainly driven by internal R&D activities and market pull, driven by the external market forces.[1] [2] The business terms push and pull originated in the logistic and supply chain management, but are also [3][4] widely used in marketing. A push-pull-system in business describes the movement of a product or information between two subjects. On markets the consumers usually "pulls" the goods or information they demand for their needs, while the offerers or suppliers "pushes" them toward the consumers. In logistic chains or supply chains [5] the stages are operating normally both in push- and pull-manner. The interface between push-based [5] stages and pull-based stages are called push-pull boundary or decoupling point. Contents [hide] 1 Marketing o 1.1 Push strategy o 1.2 Pull strategy 2 Supply chains 3 Push Pull Music Marking Future 4 See also 5 References [edit]Marketing [edit]Push strategy Another meaning of the push strategy in marketing can be found in the communication between seller and buyer. In dependence of the used medium, the communication can be either interactive or non-
- 2. interactive. For example, if the seller makes his promotion by television or radio, it's not possible for the buyer to interact with. On the other hand, if the communication is made by phone or internet, the buyer has possibilities to interact with the seller. In the first case information is just "pushed" toward the buyer, while in the second case it is possible for the buyer to demand the needed information according to his requirements. Applied to that portion of the supply chain where demand uncertainty is relatively small Production & distribution decisions are based on long term forecasts Based on past orders received from retailer’s warehouse (may lead to Bullwhip effect) Inability to meet changing demand patterns Large and variable production batches Unacceptable service levels Excessive inventories due to the need for large safety stocks less expenditure on advertising than pull strategy [edit]Pull strategy In a "pull" system the consumer requests the product and "pulls" it through the delivery channel. An example of this is the car manufacturing company Ford Australia. Ford Australia only produces cars when they have been ordered by the customers. Applied to that portion of the supply chain where demand uncertainty is high Production and distribution are demand driven No inventory, response to specific orders Point of sale (POS) data comes in handy when shared with supply chain partners Decrease in lead time Difficult to implement [edit]Supply chains Main article: Supply chain management With a push-based supply chain, products are pushed through the channel, from the production side up to the retailer. The manufacturer sets production at a level in accord with historical ordering patterns from retailers. It takes longer for a push-based supply chain to respond to changes in demand, which can result in overstocking or bottlenecks and delays (the bullwhip effect), unacceptable service levels and product obsolescence. In a pull-based supply chain, procurement, production and distribution are demand-driven so that they are coordinated with actual customer orders, rather than forecast demand.
- 3. A supply chain is almost always a combination of both push and pull, where the interface between the [5] push-based stages and the pull-based stages is known as the push–pull boundary. An example of this would be Dell's build to order supply chain. Inventory levels of individual components are determined by forecasting general demand, but final assembly is in response to a specific customer request. The push- pull boundary would then be at the beginning of the assembly line. [edit]Push Pull Music Marking Future This section may require cleanup to meet Wikipedia's quality standards. Please improve this section if you can. The talk pagemay contain suggestions. (August 2009) Many media and music futurists are speculating upon the change within the industry. The introduction and success of social networking along with digital music has transformed and re-shaped the way music is marketed to the consumer; shifting from a push to pull strategy. In media and advertising everything is switching to pull. There is an eminent difference between the consumer receiving information from a push strategy and a pull strategy. Push example; passive, the marketing campaign is in control of the message being sent out and how it is received by potential customers. Pull example; active, the recipient of the marketing campaign is in control of the message and their decision whether to act or not. Generally the shift from push to pull has been viewed as a shift in power to the consumer away from advertisers and so is bad news for marketers. With the increase of social networking platforms and users, with emphasis to Facebook, social networking has become a major and focal part to music marketing adopting the pull marketing strategy. Pull marketing shifts the emphasis and attention onto the customer, the essential attribute is to market in the correct places and knowing where and who the target audience are. Consumers are increasingly customizing music platforms to better suit their individual needs. Rather than relying on music companies or a DJ to pre-determine the mix of songs on a CD, an increasing number of music listeners are downloading individual tracks and assembling their own sequence of songs. This process is also being replicated with the creation of playliststhrough platforms such as iTunes, Spotify and Last FM. Fan-built playlists and mixes are taking over the way people get their music. Playlists are inevitably becoming a pull marketing resource that marketing alliances must embrace, due to their ability to be share via Peer to peer networks. People are choosing what they want to hear rather than having it pushed on them. As consumers gain access to a greater number of options/platforms and more information about such services, the consumer will probably become more demanding on resource providers. Requiring services to be made available on consumers terms, when and where they want them, rather than when and where it is convenient for the resource providers to deliver them. In addition, as mentioned above consumers are
- 4. demanding the ability to configure their own products from resource providers, leading to rapid growth in options and music services. Inevitably shifting music marketing from push to pull, as digital music services try out different models and features to try and find the optimum mix and consumer satisfaction.