Foreign Service Officer Test (FSOT) Practice Exam

What term describes the strategy where manufacturers create consumer demand to pressure marketing channel members?

1. A. Pull strategy

2. B. Push strategy

3. C. Demand strategy

4. D. Supply strategy

The correct answer is: A. Pull strategy

The term that accurately describes the strategy where manufacturers create consumer demand to pressure marketing channel members is the pull strategy. This approach focuses on generating demand at the consumer level, encouraging consumers to seek out a product. As a result, retailers and distributors respond to this consumer interest by stocking more of the product, effectively pulling the product through the marketing channels. In a pull strategy, manufacturers invest in advertising and promotions aimed directly at consumers, leading to increased demand. Retailers observe the rising consumer interest and are thus motivated to buy more inventory to meet this demand. This contrasts with a push strategy, where manufacturers push products through the distribution channels by providing incentives to wholesalers and retailers to carry their products regardless of direct consumer demand. Understanding this distinction is vital because each strategy has its own implications for how products are marketed and sold. In this context, the pull strategy is particularly effective in markets where consumers have strong preferences and can influence retailer decisions through their purchasing behavior.