Question

After the economic recession, the boating industry suffered from a decline in sales. However, recent sales forecasts indicate that the upcoming season will produce a strong demand for boats and boating equipment. Based on this, Les has decided to ramp up production this winter of both his bass fishing boats and speed boats, keep them in storage until the boating sales season officially resumes, and hope that customers will buy them. This is an example of a
push strategy. T/F

Answer 1

Answer:

TRUE - Push Strategy

Explanation:

Push strategy involves the use of marketing channels to push a product or service through to the sales channels. In this situation, an organization tries to push its product to the customers by creating customer demand for the product through service promotion. The strategy uses its sales force and trade promotions to induce intermediaries to carry, promote and sell product to final consumers or end users. Thus, by ramping up production and putting them in storage in anticipation of the sales season, Les is using pushing strategy.

Answer 2

Answer: False

Explanation:

The strategy used by Les company is not the push strategy but rather it is the pull strategy. The pull strategy is a marketing strategy where the business marketers tries to attract the consumer to a product while in the push strategy the products are sent out massively to the consumers.