Question

Need detailed and elaborated answers to the following questions. Remember each question is of 25 Marks

Question 3) Discuss the advantages and disadvantages of either pushing or pulling policy for a very small producer just entering the candy business with a line of inexpensive candy bars. Which policy would probably be most appropriate? Discuss the nature of marketing in a socialist economy. Would functions that must be provided and the development of wholesaling and retailing systems be any different than in a market directed economy?

Answer 1

Discuss the advantages and disadvantages of either pushing or pulling policy for a very small producer just entering the candy business with a line of inexpensive candy bars. Which policy would probably be most appropriate?

In the marketing section if the business, advertising oush strategy refers to the situation where a marketer or a vendor advertises and promotes the products in such a manner to gain the audienec awareness and attract the same audience. The incentives are being pushed towards the audience. On the other hand, the pull strategy refers to the situation where the audience or the customers which shows the existing interets are being pulled together by interacting and maintaining the relationships with them.

The advantages of push strategy is that it can work great when the business is newly opened as there is no existing demand thus you can push the incentives to make the customers attract. The disadvantage is that, you have to research and use the right techniques which is costly and also time comsuming.

The advantage of pull strategy is that you have to communicate with the exisiting demand thus it is cost effective and time efficient at the same time. The disadvantage is that you cannot exercise the pull strategy when you are opening a new business because there is no existing demand.

Thus, we can see in our question that the business is just entering the market selling the inexpensive candies. We would use the push strategy as there is no existing demand for the same product. The advertisements would be done in such a manner where the customers would be attracted seeing how cheap and good quality these candies are by engaging with them using the social media advertisements, newspapers, banners etc.

Discuss the nature of marketing in a socialist economy. Would functions that must be provided and the development of wholesaling and retailing systems be any different than in a market directed economy?

A socialist economy could de defined qs a system of production where the services and the goods are being produced directly for the consumption and use which is directly in contrast with the capitalist economic system where the main aim is to earn and generate the profit. Thus the marketing styles in the socialist economy are more concerned with the social development where every individual is able to consume and produce at the same level. More emphasis is given to the development of the country economically rather than earning profit. The price is set in such a manne where the costs are covered and no profits are made just a way where the production is done to meet the needs. The marketing would have social oriented nature promoting social welfare.

Market Directed Economy is referred to as an economy where there is a free market where the supply and the demand forces control the prices of the product. Wherever the supply and the demand would meet at an equivalent point, the price is set at that point only. That price could be either over the cost or could under the cost as well, but the supplier and the buyer forces should intersect at one point agreeing on a price and a particular quantity of good at that price making it a standard price.

Thus in a socialist economy, more emphasis given to the social development and consumption, has very less difference with the market directed economy. If the purchaser isn'y having the income to buy that particular commodity, then the seller would reduce the price to meet the expectation of the consumption making it similiar.