MANUFACTURERS & WHOLESALERS

 Service to Manufacturers and Wholesalers

The retailer performs valuable service to manufacturers and wholesalers also, they are as follows:

• The retailer looks after the entire process of distribution. This enables the manufactures to concentrate on production.
• By advertising and displaying goods, the retailer’s credits demand for the product.
• As the retailers are in close touch with customers they can collect the necessary market information which can help the both manufacturer and wholesaler. This enables the manufacturer to produce goods recording to the needs and desires of the consumer.
• They will find customers for the new products introduced in the market. There are certain methods by which retail merchandising profits may be earned. The following principles are in profit making that may help the retailers.

1. Better buying
2. Better selling
3. Better store operation
4. Keeping everlasting on the alert for the precaution of losses and wastes.

 Dealers

Dealers are middlemen who act as a pipeline through which a product flows in its way to the consumers. Dealers simply mean that it is a set of marketing intermediaries through which the goods flow from the producers to consumers or it is the outlet of the goods for the final consumer.

 Functions of Dealers

In these days of specialization the producer wants to concentrate on production of goods as a result of these, a gap developed between producer and consumer. It is a channel of distribution which bridges the gap between producer and consumer. It overcomes the time place possession. The channel of distribution or marketing channel performs the following functions:

• It helps to move goods from the point of production to the point of consumption.
• It helps the producer not only in the distribution of goods, but also in promoting the sales of products.
• It communicates the changes in the product to the consumer and communicates the changes in habits, tastes and preference of the consumer to the manufacturer.
• It helps to stabilize prices by stocking goods and assuring constant flow of goods to the market.
• It helps in forecasting the demand, production activities and marketing research.

  Classification of Dealers

A number of institutions exist in every country to carry the function of middlemen. These institutions are based on work performed by them and can be classified four follows.

Agent Middlemen

Agent middlemen or functional middlemen are those intermediaries who negotiate purchase or sales or both but do not take the title of goods. They are also called mercantile agents. Some of the different types of agent’s middlemen are as given below.

Brokers

Brokers are interring buyers and sellers together and striking a deal. Brokers may play as an agent of the buyer or seller. They never set prices but help to bargain pieces. They get a commission for the service rendered.

Commission agents

Commission agents function on behalf of their principle. They buy or sell  products on behalf of their principles. They have the possession of goods but not the ownership. They negotiate the sales or purchase at the best possible team. Commission agent takes delivery of goods, facilitates the storage and receives or makes payments on the case may be. They work for the commission.

Sole selling agent

Sole selling agent is a middleman who undertakes to see the entire product of a manufacturer. They are responsible for marketing the entire product. They influence the terms and price fix. They even advance money to the manufacturers. They are also called manufacturer representation. They sell the product on the prices and terms fixed by their principles.

Packing and forwarding agent

They are employed to procure delivery and forward goods on behalf of others. Their remuneration is very small when compared to other agents.

Export and import agent

Their service is confined to few leading port cities. They cater to the needs of the principal who seek foreign market as an overseas source of supply.

Factors

The function of the factors is similar to commission agents; they are also vested with the power to that of commission agents.

Residence Buyers

They are independent men appointed by the retailer to purchase nods for foreign consumers.

 Important of Dealers Satisfaction in Marketing

When a product has been developed and made ready and its price also determined, the next task is its distribution to bring it to the market and much of it to the consumers in the former days. When production was taking place on a small seal, the producers himself took the responsibility to dispose of their goods. In this competitive business world, the marketer or the producer has to decide the ways through which the goods are to be distributed to the consumers, there are two alternatives for a marketer or producer. Selling direct to consumer or selling through middlemen. Nowadays most producers do not sell their products directly to the final consumer. In many cases they will leave the loss of distribution to the hands of middlemen.

The topic of dealer’s satisfaction is a very relevant one. As the dealers get dissatisfaction in their dealings, consumers do not get the right goods at the right time. Because dealers are the links which connect consumer satisfaction then the dealers are dissatisfied we cannot achieve consumer satisfaction also. So distribution satisfaction and consumer satisfaction is closely associated.

Dealers Sales Promotion

Dealers sale promotion is also known as dealer trade promotion. Manufacture uses a number of techniques to secure the corporation of the wholesalers, retailer and middleman. Those activities increase the interest and enthusiasm of dealers’ distribution. It is the middlemen who are important people for the fast movement of products. Hence this must be offered with some incentives.

Following are the various types of dealer’s sale promotion devices.

1. Buying allowances

It is an offer of money or temporary reduction to dealers for purchasing in a stipulated time period. It is considered as a very effective purchase. It is a very effective method to introduce new products in the market it uncourageous the dealers to buy quality that they will not buy in ordinary time. This buying allowance gives the dealers immediate profit and price resumption.

2. Mercantile Allowance

An advertising allowance is given to dealers for advertising features for the manufacturing products. A display allowance is given to them for arranging special display of the products.

3. Price Dealers

A part from the regular discount to the dealers for a specified quantity of purchase . This special discount is out and above the regular discount.

4. Push money or premium

Many manufacturers offer push money. It is a payment in cash or gift often to dealers or to this sales force to push the manufactures products.

5. Co operative Advertising

Dealers spend money in advertising manufactures with the consent of the manufacturer. The dealers can claim an allowance by giving the proof of the advertisement.

6. Dealers safe contest

This is an indirect way of boosting the sale. This type of contest is conducted at the level of retailers and wholesalers. This is in front of window display store sales etc..

7. Dealers Gifts

Some manufacturers give alternatives and users are full to the sealers. The gifts are in the form of television, clock, watches, tour packages, etc…

8. Point of purchase

This plays the role of silent salesman. This is also called dealer’s aid. The completion among the retailers or traders had encouraged point of purchase advertising which is a significant method for sale promotion. It means that advertising at the point of purchase by the consumer.