Asked by Brooke Patterson on Jun 24, 2024
Verified
If a smartphone manufacturing company uses a pull approach to build brand awareness, it is likely to:
A) charge different prices to its subsidiaries for the goods sold in global markets.
B) engage in gray market activity.
C) cultivate customer desires and expectations so the customer will demand more product.
D) use price-oriented promotions and give initial discounts on its products.
Pull Approach
A marketing strategy where demand for a product or service is created through consumer interest, often initiated by the end-users.
Brand Awareness
The extent to which consumers are familiar with the qualities or image of a particular brand of goods or services.
Gray Market Activity
A specific type of arbitration whereby companies or individuals buy a product in a cheaper market and sell it in a more expensive market.
- Learn about the variety of marketing strategies (push, pull, rewards schemes) and their contribution to product flow through the distribution channel.
Verified Answer
HE
Helmy EissaJun 28, 2024
Final Answer :
C
Explanation :
A pull strategy in marketing focuses on creating demand for a product among consumers, so they request it from retailers, which in turn pulls the product through the distribution channel. This is achieved by cultivating customer desires and expectations, making option C the correct choice. Charging different prices to subsidiaries (A) relates to transfer pricing, not brand awareness. Engaging in gray market activity (B) is about unauthorized distribution channels, and using price-oriented promotions (D) is more aligned with a push strategy than a pull strategy.
Learning Objectives
- Learn about the variety of marketing strategies (push, pull, rewards schemes) and their contribution to product flow through the distribution channel.