Checkpoint #3 Essay

891 Words4 Pages
1. A push strategy is when a company uses whatever possible means to sell its product directly to the customer. In other words, the push strategy is a strategy set to take the product to the customer. For instance, it may sell directly to the customer via its website or face-to-face, or it may negotiate with retailers to stock its products so as to get it to the customer. This is good when there is low brand loyalty or when the item is an impulse product. A pull strategy, on the other hand, entices customers to seek out the product itself. The goal of the pull strategy is to make the customer come to you. For instance, companies may use advertisements and/ or discounts to make the customer go out and get that specific product. Word of mouth is also used as a pull strategy, because it also gears the customer to come out and get that specific product. This strategy is best when there is high brand loyalty. 2. Channel conflict is caused when the actions of one channel prevents another channel from fulfilling its goals and thereby leading to competition between the channels. There are three types of channel conflicts. Vertical channel conflict is when there is conflict between the different levels of the same channel. For example, when a manufacturer bypasses its intermediaries and sells its products directly to its customers thereby creating competition between itself and its intermediaries. Horizontal conflict is conflict between channel members of the same level. This conflict is caused when one dealer or retailer uses aggressive advertising and/ or pricing to attract more customers to it. This may lead to price wars between other dealers and retailers selling the same item(s). Finally, a multi-channel conflict occurs when a manufacturer uses two or more channel arrangements to reach the same market. For instance, a multi-channel conflict occurs when

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