Sleep-Sound Company sells its products in France through an import agent, which then sells to a...
Sleep-Sound Company sells its products in France through an import agent, which then sells to a wholesaler. In turn, the wholesaler sells to several retailers that ultimately sell to the consumer. In this example, the amount of intermediaries between the producer and the consumer suggests that the channel is
a. long.
b. wide.
c. selective.
d. short.
e. concentrated.
A push strategy will be used by a company that wants to
a. emphasize personal selling.
b.focus on mass media advertising.
c. reach as many people as possible very quickly.
d. require very little involvement of a sales force.
e. rely heavily on online advertising.
A company would adopt a pull strategy when it wants to
a. speak one-on-one with the customer.
b. rely on personal selling.
c. sell industrial products.
d. limit television advertising.
e. emphasize mass media advertising.
Homework Answers
Answer 1: Option A - Long
Explanation: The distribution channel described in the problem is a long channel as there are three intermediaries between producer and the customer
Producer – Agent – Wholesaler - Distributor
Answer 2: Option B - focus on mass media advertising
Explanation: A push strategy is used by firms which are heavily dependent on trade promotions of advertising for their sales to the masses. In this strategy, the product is pushed into the market through promotions.
Answer 3: Option A - speak one-on-one with the customer
Explanation: A pull strategy is used by the firm which tries to pull or attract the customer so that demand for their product gets created. This pull results in customers approaching the firm, which further gets converted into sale.
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