Scenario: Silk Industries, LLC
Silk Industries, LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company enjoys a well-recognized brand name and loyal customers worldwide. The managers are considering different types of promotional strategies.
-If Silk Industries is interested in pressuring channel members to carry a product and promote it to final users, it should focus on which of these?

Question

Quizplus · Accepted Answer

The strategy of pressuring channel members to carry a product and promote it to final users is known as a push strategy. This involves incentivizing intermediaries such as wholesalers, distributors, and retailers to promote and sell the product to end-users. This strategy is commonly used to promote industrial products, and it can also be effective for promoting consumer products that are sold through intermediaries. A pull strategy, on the other hand, involves creating demand for a product among end-users, which then draws intermediaries to carry and promote the product. Dual pricing is a pricing strategy that involves charging different prices for the same product in different markets or to different types of customers. Zero-level channel refers to a distribution strategy where the manufacturer sells directly to the end-user without the involvement of intermediaries.