1. A push strategy is one in which a company pushes its products to people, for

Question

1. A push strategy is one in which a company pushes its products to people, for example by giving protions or discounts. Or giving bundled products

However, a pull strategy is used to attract people so that they are long term customers for the company and stay loyal.

Great customer service and niche products are an example of pull strategy.

Supplier is using a push strategy in this case by giving promotional offers. He is not trying to retain the company as a long term strategic partners.

2. As a manager of distributor , I will report the incident to concerned head of the supplier. If the product is available with other suppliers, I will switch to supplier. In this case it looks like product is available with other suppliers as well.

I will ask them for their proposals and choose a best one and stop taking material from this vendor.

Explanation / Answer

Consider the following scenario:

You are a sales manager for a regional electrical distributor. You just learned that one of your smaller, nonstrategic suppliers of copper wire has directly emailed your salespeople (without your knowledge) with details of an incentive plan that would provide your salespeople with bonuses, paid directly by the supplier, if they met certain sales requirements of their product over the next quarter.

1. Is the supplier using a push or pull strategy?

2. As the manager of the distributor, what actions would you take, if any, in response once you found out about this program? Explain your actions.

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