Channel Length

The longer the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer. This can lead to inertia in the channel, which can make entry very difficult. Using direct selling to push a product through many layers of a distribution channel can be very expensive. In such circumstances, a firm may try to pull its product through the channels by using mass advertising to create consumer demand--once demand is created, intermediaries will feel obliged to carry the product.

In Japan, products often pass through two, three, or even four wholesalers before they reach the final retail outlet. This can make it difficult for foreign firms to break into the Japanese market. Not only must the foreigner persuade a Japanese retailer to carry her product, but she may also have to persuade every intermediary in the chain to carry the product. Mass advertising may be one way to break down channel resistance in such circumstances.

Media Availability

A pull strategy relies on access to advertising media. In the United States, a large number of media are available, including print media (newspapers and magazines) and electronic media (television and radio). The rise of cable television in the United States has facilitated extremely focused advertising (e.g., MTV for teens and young adults, Lifetime for women, ESPN for sports enthusiasts). With a few exceptions such as Canada and Japan, this level of media sophistication is not found outside the United States. Even many advanced nations have far fewer electronic media available for advertising. In Scandinavia, for example, no commercial television or radio stations existed in 1987; all electronic media were state owned and carried no commercials, although this has now changed with the advent of satellite television deregulation. In many developing nations, the situation is even more restrictive because mass media of all types are typically more limited. A firm's ability to use a pull strategy is limited in some countries by media availability. In such circumstances, a push strategy is more attractive.

Media availability is limited by law in some cases. Few countries allow advertisements for tobacco and alcohol products on television and radio, though they are usually permitted in print media. When the leading Japanese whiskey distiller, Suntory, entered the US market, it had to do so without television, its preferred medium. The firm spends about $50 million annually on television advertising in Japan.

The Push-Pull Mix

The optimal mix between push and pull strategies depends on product type and consumer sophistication, channel length, and media sophistication. Push strategies tend to be emphasized:

• For industrial products and/or complex new products.

• When distribution channels are short.

• When few print or electronic media are available.

Pull strategies tend to be emphasized:

• For consumer goods.

• When distribution channels are long.

• When sufficient print and electronic media are available to carry the marketing message.