ABSTRACT
Most manufacturers use partner organisations to reach customers through a ‘channel’. Without these partners, they would have to sell and deliver direct to customers, which would be logistically and commercially unviable. Clearly, a Nike truck will not deliver sports shoes from the factory to our homes. Some exceptions exist (e.g. service providers like solicitors or dentists usually interact directly with customers). However, most firms have downstream channel partners, who help to market, move and sell goods; and upstream channel partners, who supply the resources needed by the firm. Each type adds value within the supply chain.
Some manufacturers use push strategies, in which they persuade or incentivise their downstream channel partners to take lots of stock, which therefore puts pressure on them to sell product to end users. In this approach, the manufacturer is ‘pushing’ product down through the channel. Some manufacturers use pull strategies, in which they appeal directly to end users via branding, marketing communications, and other elements of the marketing mix.
