•       A push strategy is used when a firm pressures channel members to carry a product and promote it to final users. Manufacturers of products sold in department and grocery stores often use a push strategy.

•       A pull strategy is used when a company creates buyer demand that will encourage channel members to stock a company’s product. Buyer demand is generated and “pulls” products through distribution channels to end-users.

Pull strategy:

•     Consumer goods

•     Large market segment

•     Long distribution channels

•     Mass communication has cost advantages.

Push strategy:

•     Industrial products or complex new products

•     Direct selling allows firms to educate users

•     Short distribution channels

•     Used in poorer nations for consumer goods where direct selling only way to reach consumers.

(b)
Whether a firm uses a push or pull strategy depends on the type of distribution system present, the firm’s access to mass media, and the type of product it is selling.

•     Implementing a push strategy is difficult when channel members, not producers, wield power. It can also be ineffective when distribution channels are lengthy, in which case a pull strategy might be better.

•     Increasing consumer awareness and generating demand can be difficult in emerging markets with few forms of mass media. Billboards and radio may be needed when consumers have little or no access to the Internet or to cable or satellite TV.

•     Finally, a pull strategy may be best when buyers display brand loyalty because they know the product they want. A push strategy can be more appropriate for inexpensive consumer goods and when buyers are not brand loyal because they may seek the least expensive brand that a retailer carries.

e.g.) Promote Big Mac 

(Extend standardized product)

Same global advertisement “I’m lovin’ it”

(Extend Communication)

e.g.) Promote Big Mac 

(Extend the standardized product)

To cater to Singapore, Use local Actors/Actress & use Singlish

(Adopt Communication)

e.g.) Promote Nasi Lemak Burger 

(Adopt the product to local culture)

Same message “I’m lovin’ it”

(Extend Communication)

e.g.) Promote Nasi Lemak Burger

(Adopt the product)

Use local actors/actress & use Singlish

(Adopt Communication)

5)Product invention
invent an entirely new product for a target market

•       Developing Countries may need something totally different from products offered in Developed Countries

•       Buyers may have low purchasing power (especially in developing countries)

•       Infrastructure (Port, Railroad, Highway, Electricity & Water Supply, Broadband Internet) may not be reliable

FOR STARBUCKS:
Strategy:  Extend Both Product and Communications
e.g.) During Halloween, Promote Halloween menu throughout the world.
e.g.) Starbucks doesn't have an official slogan. However, they do have an official mission statement. Their mission statement is, "To inspire and nurture the human spirit–one person, one cup and one neighborhood at a time."

2)     Promotion – Social media, Starbucks Rewards (referral system), and CSR to improve brand image.

3)     Place – Over 30,000 locations worldwide at High visibility and traffic locations. within shopping malls to have majority of the market share.

4)     Price – Premium pricing strategy (High price and quality) there is product differentiation and thus having higher price is acceptable.