Compare and contrast push and pull strategies. Which strategy would be most appropriate for a new cat food product offered by Purina, which already has several cat food products on the market?
What will be an ideal response?
A push strategy is when manufacturers use aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell their merchandise. The wholesaler, in turn, must push the merchandise forward by persuading the retailer to handle the goods. The retailer then uses advertising, displays, and so on to convince the consumer to buy the pushed products.
A pull strategy stimulates consumer demand to obtain product distribution. In this case, the manufacturer focuses its promotional efforts on final consumers, usually with mass media. As consumers demand the product, the retailer orders the merchandise from the wholesaler. As the wholesaler is confronted with rising demand, it places orders for the merchandise from the manufacturer. Stimulating final consumer demand pulls the product through the distribution channel. Consumer advertising, cents-off campaigns, and couponing are part of a pull strategy.
Rarely does a company use a pull or a push strategy exclusively. Instead, the mix will emphasize one of these strategies. Purina will use a push strategy to gain distribution for the new product, but it will not be as difficult compared to a company that already doesn't have distribution for similar products or have the brand equity Purina has. Purina will use a pull strategy to generate demand among cat owners so that they come to the store to purchase the brand, and if it is not there, this demand will pull the product down the channel.
You might also like to view...
Which of the following is not a correct statement regarding deferred tax asset valuation allowance?
A. Companies without a history of profitability may generate negative income tax expense in the year they first generate a profit if they have a valuation allowance that is reversed in the year of profitability. B. Profitable companies will never have valuation allowances against deferred tax assets. C. If a deferred tax asset may not be fully realized in future periods, a valuation allowance is required to reduce the asset to the amount that is more likely than not to be realized. D. The determination of whether or not a valuation allowance is necessary is based on subjective assessment.
When a parent company pays less than book value for an investment in a subsidiary, the excess of book value over the cost of the investment should be used to lower the carrying value of the subsidiary's long-term assets (other than long-term marketable securities) in preparing the consolidated financial statements
Indicate whether the statement is true or false
Ownership of land usually includes the land below the surface
Indicate whether the statement is true or false
________ has worked hard to reuse heat energy from boilers in its production process and reduce its total water footprint
A) Walmart B) Coca-Cola C) IBM D) Starbucks