The final step involves a comprehensive analysis of the actions taken. Systematic assessment allows the company to obtain data on the effectiveness of the sales network and draw conclusions about possible ways to improve it. It is necessary to analyze a number of parameters, including sales volumes, quality of work with clients, speed of implementation, compliance with technologies and service standards, etc.
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Selection of distributors when building a sales strategy
After analyzing its potential and existing singapore business mailing list shortcomings, a manufacturing company can outsource to a third-party organization to solve the tasks described above.
In a situation where the intermediary is considered as a participant in the distribution system in precisely this role, this approach will allow for a more objective consideration of existing market trends.
The table shows the functions that an intermediary typically performs: the left column indicates the benefits for the seller (manufacturer), and the right column indicates the benefits for the buyer.
Benefits of using intermediaries:
Pros for the seller Benefits for the consumer
Transportation of local stocks Fast deliveries
Combination of supplier products Getting a product line
Differentiation of risks associated with non-payments Getting a local loan
Simplifying the setting of sales tasks Providing assistance in making purchasing decisions
Forecasting market demands Forecasting consumer demands
Obtaining real-time market data Obtaining important information about the product
Improving customer service quality Improving customer service
If a manufacturer intends to use intermediaries, it must make the following strategic decisions:
which marketing tasks should be delegated to an intermediary and which should be solved jointly;
what segment of the product line will be sold through an intermediary;
what type of intermediary to choose and what should its size be;
how efforts will be distributed within the distribution network between the manufacturer and the intermediary;
What should be the sales policy to ensure the effectiveness and profitability of mutually beneficial cooperation.
Below are some standard solutions for using intermediaries when developing a sales strategy.
Distribution of marketing tasks
The manufacturer expects the intermediary to maintain significant inventory to meet local market needs. At the same time, the partner may also perform a number of additional functions, including repairs, warranty service, local advertising, participation in trade shows, testing of new products, product support and credit risk management.
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Product line
Manufacturers often divide distribution channels by product range. This approach can be useful when different product groups are targeted at different market niches and each segment is served by separate groups of partners.
Size and number of intermediaries
The manufacturer has a choice between using one large intermediary or several small ones. Some studies show that the first type of partners, striving to take a leading position in the market, may overlook customer service issues.
At the same time, working with many small intermediaries gives the manufacturer more control over sales. Large partners, however, can store more stock and work with more complex products. When considering the types of trade intermediaries, it is necessary to highlight a number of other key differences:
does the intermediary purchase the products as property;
how the partner participates in generating demand for the product;
what set of functions does the intermediary perform?
Let's look at the main types of trading intermediaries.
Agent : deals with sales, but does not become the owner of the product and rarely finances transactions. Importantly, such an intermediary can collect market statistics.
Broker : works on behalf of both buyers and sellers. Most often, such a partner works with standardized products without becoming their owner.
Commission Agent : A general term for wholesalers or distributors who specialize in a narrow category of products and serve channel members closest to end customers.
Wholesaler : takes ownership of the product and performs a wide range of other functions.
After evaluating various options for a distribution channel, the company selects the optimal structure for it. The next stage is the direct management of the selected network. To do this, it is necessary to organize the selection and motivation of individual intermediaries, as well as an assessment of their work.