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 creating buyer demand that will encourage channel members to stock its products it should employ a ________.
A) pull strategy
B) transfer pricing strategy
C) push strategy
D) zero-level channel strategy

Question

Quizplus · Accepted Answer

A pull strategy focuses on generating demand from end consumers, encouraging them to request the product from retailers or intermediaries. This creates a demand-driven market, where intermediaries are more likely to stock products that customers are requesting. Since Silk Industries already has a recognized brand name and loyal customers, utilizing a pull strategy may be the best approach to encourage intermediaries to stock its products.