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Case 21
General Electric Company
Case Objectives
1) To illustrate the use of an effective promotion strategy to motivate marketing channel
members.
Problem Situation
The case provides a detailed description of the “inner workings” of a successful channel
strategy used by GEC to gain sales support from its distributors and their salespeople for a
new line of quality lighting products introduced by the company.
Teaching Suggestions
Although this case is short and simple, it actually deals with one of the most important issues in
marketing channel management-motivating marketing channel members and their salespeople
via promotional support. Thus, an extended class discussion on the fundamental issue of securing
independent channel member cooperation to help a manufacturer achieve a basic strategic
Case Discussion
GEC needed a channel strategy to motivate its distributors’ salespeople to push its newer line of
products. Toward this end, GEC designed a channel strategy comprised of a pair of incentive
campaigns for distributors’ salespeople featuring fun themes of “ups” and “downs,” viz., the
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“Scale Mount Sellmore” …and then “Run the Sellmore Rapids” promotion contest.
The answer to what accounted for the’ dramatic success of GEC’s promotion campaign probably
lies in its innovative design and the fact that it was interesting and fun for the distributors to
participate in. Moreover, GEC realized that gaining widespread market coverage of the new