Push Strategy

Creating the network of resellers, agents, brokers, representatives

You can use the Push Strategy in the following cases:

1. Your product is popular and does not involve deep customization

2. You are new to the market

3. You have a tainted reputation and you can “borrow” mediator’s reputation

4. You’re not going to stay long in this market and the release of this product is temporary

 

Be careful!

1. Advertising your product, in same time you advertise Reseller

2. There are the costs associated with sales, within a developed system of discounts for resellers, various contests, loyalty programs, providing them with various promotional materials, training, sales and so on.

3. Nothing keeps the reseller to break the contract with you

4. It is difficult to control and predict sales. Small businesses always have a certain dependence on distributers which are always pursuing their own interests

5. The breach of contract with a key agent can almost completely block the flow of new customers. This is a fairly common situation where the agent is “big”, and you are “small”

 

Pull Strategy
Selling by yourself

 

PROS:

1. To release services or products under its own brand
2. To position your product as an element of prestige and service for the elite
3. By investing money in product advertising, in same time you will be supporting your brand
4. To get better control over sales and more stable ROI

 

 

cons:

1. The implementation of this strategy requires a financial and time costs

2. Your business is highly dependent on your reputation

 

Be Smart, do not share your profits with resellers


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