For retailers, finding the balance between push and pull strategies is difficult

Question

For retailers, finding the balance between push and pull strategies is difficult. For example, every time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book. Thus, publishers print a large number of copies of the book in order to meet the estimated demand. In this situation, the bookstore's primary concern is: negotiating a flexible contract with the publisher that allows for the number of books sold to vary establishing a selling price that will satisfy the needs of both the retailer and publisher whether to return copies of the publisher's books that have stopped selling. seeking a contract with a wholesaler to store excess inventory after the book is released. having enough books to satisfy customer demands versus the cost of having the inventory

Explanation / Answer

Distributing a book by a celebrety falls more towards pull type of strategy hence the demand will be more from customer end rather than push from wholesaler of the book. hence retailer will try to have enogh books to satisfy customers demands . And since this would be pull type of marketing startegy book retailer will not be in position to demand a contract , his prime concern will be cost of having inventory and enough supply from wholesalers ( since there will be Demand from market profit margine might be low for retailer .

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---