Sales network requirements. Industrial Marketing: Theory and Practice

The main tasks in the development of the marketing policy of the IE Tskhai Zen Suni "Korean Cuisine" are the choice of channels for the distribution of goods, making decisions on the marketing strategy.

In most cases, the production and consumption of food products do not coincide either in time or space. Therefore, no matter how diverse consumer properties Korean dishes have, the production enterprise of IE Tskhai Zen Suni can count on real commercial success only if it is rational organized marketing finished products.

In its activities, the enterprise IP Tskhai Zen Suni "Korean cuisine" uses simultaneously the following types sales:

Direct sales. It is beneficial for the enterprise, because allows you to save full control for conducting trading operations, to know the market of their goods better, to establish long-term relationships with their consumers. In addition, the use of direct marketing allows you to respond to market demands in a timely manner. However, the company strives to use the services of independent intermediaries, and to invest in its business - and this brings benefits to it.

Phone marketing. The company works directly with the client by taking orders by phone. An employee of the sales department accepts applications from the consumer with an order of a particular product, in one volume or another. The next step is product delivery. Moreover, delivery is carried out in the shortest possible time, with simultaneous settlement with the buyer at the place of delivery of the order.

Intensive sales. The company sells the product by delivering it to outlets Abakan and the Republic of Khakassia directly to those resellers who are able to engage in the sale of products. This food product of Korean cuisine is a product of mass demand, so the manufacturer produces it in relatively large volumes (according to the requests of intermediary sellers), making it available to many consumers through a very dense distribution network.

On the manufacturing plant IP Tskhai Zen Suni "Korean Cuisine" operates a Sales Department, designed to solve the following major tasks:

· development of short-term, medium-term and long-term sales strategy;

· study of the factors that determine the structure and dynamics of consumer demand for the company's products, market conditions;

study of demand for the company's products and the development of long-term, medium-term and short-term forecasts of the need for goods;

research of consumer properties of products, customer requirements presented to them; orientation of production to meet product requirements,

The marketing policy of the production enterprise IP Tskhai Zen Suni "Korean cuisine" is inextricably linked with demand (its size, dynamics, structure) in the target market and with its own production, marketing, financial, organizational, managerial and other capabilities. This policy satisfies the needs of customers to the maximum extent, and with the greatest convenience for them, and at the same time takes into account the factor of pressure from competitors, manifested in their marketing policies and practices.

The distribution policy determines the company's place in distribution channels, including marketing logistics solutions. The basis of the marketing policy of the enterprise is to determine its place in the distribution channels.

The following flows pass through the distribution channels of Korean cuisine products:

physical flow (the flow of Korean cuisine products);

· cash flow(back);

information flow (forward and reverse);

The flow of promotional funds (direct).

Choosing sales channels, or forming new ones, the company proceeds from the fact that each of them has its own economically justified scope, its structure and specialization, its purpose.

Because of this, when analyzing distribution channels and choosing the most appropriate ones, the company proceeds from the general goals of product distribution (delivery of products to Right place and the right time, and at the lowest possible cost, and the specific tasks that he has to solve).

The effectiveness of distribution channels largely depends on interaction with intermediaries, which can be called the basis of sales management. An important point in the philosophy of interaction between participants in the distribution channel is the understanding of the seller of goods of the expectations of buyers.

As you know, depending on the nature of the interaction between the commodity producer and intermediaries, two types of vertical organization of indirect marketing channels are distinguished - traditional and coordinated. The enterprise uses a coordinated vertical structure, where the participants in the sales process coordinate their functions in order to increase the efficiency of the overall sales activity and increase market power. The coordinators here are both the manufacturer itself and wholesalers and retailers.

The company uses almost all forms of vertical structure in the sales channel:

integrated. Control over the sale of products by the manufacturer;

negotiable. The marketing program is being coordinated by intermediaries within the framework of contracts;

contactless. Cooperation between the company and the sales network is ensured by the high reputation of its brand and its image.

Specialists of the sales departments of the manufacturing enterprise are studying the needs of real and potential buyers and the offers of competitors. It was found that consumers of Korean cuisine are primarily interested in the timeliness of order delivery, as well as the supplier's willingness to meet the urgent needs of the client, ensure the supply of quality products, take back products that do not meet the quality and quickly replace them, and provide first-class service during product delivery.

With regard to sales promotion at the production enterprise Tskhai Zen Suni "Korean Cuisine", it is carried out in two main areas: stimulating consumers and stimulating employees involved in the process of selling products. The means of stimulating consumers of Korean cuisine products at this enterprise include discounts for regular customers, discounts for bulk purchases of products, and participation in exhibitions. These incentives are aimed at attracting new buyers of products.

Incentives for employees at the manufacturing trade enterprise IP Tskhai Zen Suni "Korean Cuisine" involve encouraging the efforts of employees, encouraging them to improve the service of existing customers or attract new ones. The management of the enterprise "Korean cuisine" strives to stimulate the process by financial incentives- bonuses for high production results, for Good work enterprise employee. Non-material incentives also take place. Employees of the company who have distinguished themselves by good work are encouraged with monetary bonuses.

In addition to the Sales Department, in order to organize commercial activities for the sale of goods and finished products, a Sales Department has been created at the production trading enterprise IP Tskhai Zen Suni "Korean Cuisine", the main tasks of which are:

study of demand and establishment of close contacts with consumers of products;

search for the most effective channels and forms of implementation that meet the requirements of consumers;

Ensuring the delivery of products to the consumer at the right time, in the right volumes;

· control over the course of sales of products in order to reduce commercial (non-production) costs and accelerate the turnover of working capital.

Organization of the sales service of the enterprise - "by function". This form means that both foreign markets and manufactured goods are considered in the form of certain homogeneities. Such a structure at the enterprise has been worked out and is expedient, since the enterprise has few goods and markets.

The structure of the sales department at the enterprise includes both management and production units. To management departments include the Sales Department. The sales department includes the following sectors: orders, demand studies, planned, commodity, advertising services for the supplied products.

The production divisions of the sales department at the enterprise IP Tskhai Zen Suni "Korean Cuisine" include: manufacturing facility, work shop, finished product warehouse, transport department.

Sales planning at the enterprise IP Tskhai Zen Suni "Korean cuisine" includes:

study of external and internal conditions;

definition of goals;

· development of forecasts of conjuncture and demand;

preparation of sales forecasts;

preparation of plans for the supply of finished products;

planning of optimal economic relations;

selection of distribution channels for products;

· preparation of cost estimates for sales and distribution management, profitability planning.

The organization of sales at the enterprise includes:

organizing the collection of information about the demand for products;

conclusion of contracts with suppliers for the supply of products;

Choice of forms and methods of sales of products, methods of delivery to its consumer;

preparation of products for shipment to the consumer;

merchandise technology;

organization of information and dispatching service, reporting;

organization of trade communication, legal and claims work;

Control and coordination of the work of the sales department of the enterprise IP Tskhai Zen Suni "Korean cuisine" involves:

assessment of the conformity of the implementation of marketing functions to the marketing research program;

· analysis of the action of the sales service, as well as developed measures to coordinate sales activities and improve its efficiency;

monitoring and evaluating the effectiveness of sales promotion and promotional activities;

tactical control;

control over the supply of products;

Compliance with contractual obligations, timely payment of invoices;

· presentation of claims to consumers for violation of contractual obligations and late payment of bills.

At the industrial trade enterprise IP Tskhai Zen Suni "Korean Cuisine" there are problems with the sale of products, namely:

1. Food products are specific in terms of their storage. Korean cuisine is a perishable product, so its sale should be carried out immediately.

2. The enterprise does not often enough introduce novelties of Korean cuisine into production.

3. The employees of the enterprise lack entrepreneurial consciousness, which does not correspond to the real structure of the sales department and the requirements of the consumer market.

After reviewing the organization of the distribution network of the production trading enterprise IP Tskhai Zen Suni "Korean cuisine", it should be concluded that the management of this company in the future may carry out the following activities:

· production and sale of novelties of Korean cuisine - ie. something that will entail not only an increase in the range, but will also expand production, thereby improving product quality;

· for active work with intermediaries, the enterprise needs to have qualified personnel capable of solving management issues.

With the implementation of these measures, the development of the company's sales network will become the key to its commercial success and an impetus for further dynamic development.

The issues of organizing the marketing of the product, in my opinion, are quite fully covered in the work of J.-J. Lambin. Let us present the main provisions of this work.

For most markets, the physical and/or psychological distance between manufacturers and end users is such that effective matching of supply and demand requires intermediaries. The need for a distribution network is due to the fact that the manufacturer is unable to assume all the responsibilities and functions arising from the requirements of free exchange in accordance with the expectations of possible consumers. Recourse to intermediaries means that companies lose control over certain elements of the commercialization process.

Therefore, for a company, the choice of a distribution network (distribution channels) is strategic decision, which must be compatible not only with the expectations in the target segment, but also with its own goals. The sequence of solving problems by distribution channels is shown in fig. 3.1.

A distribution network can be defined as a structure formed by partners participating in the process of competitive exchange in order to provide products and services at the disposal of personal consumers or industrial users. These partners are manufacturers, resellers and end users - buyers. Any sales channel performs a certain set of functions necessary for the implementation of the exchange.

Sales Functions:

study of the results of market segmentation and advertising planning;

conclusion of contracts with consumers or intermediaries;

accounting and control of the implementation of contracts;

development of a plan for shipping products to customers;

definition of sales channels;

organizing the reception, storage, packaging, sorting and shipment of products to customers;

information, resource and technical support marketing of products;

sales promotion;

establishing feedback with consumers and regulation.

Rice. 3.1. Sequence of decisions by distribution channels

The implementation of the considered functions leads to the emergence of commercial distribution flows between the participants in the exchange process, directed in mutually opposite directions. In total, five types of flows can be distinguished in the distribution channel:

cluster of ownership rights: transfer of ownership rights to products from one owner to another;

physical bundle: sequential physical movement of products from the manufacturer through intermediaries to the final consumer;

bunch of orders: orders coming from buyers and intermediaries and sent to manufacturers;

money clot: different payments, bills, commissions that move from the end user to the manufacturer and intermediaries;

clot of information: this clot spreads in two directions - information about the market moves towards the manufacturer, information about the goods offered, at the initiative of the manufacturer and intermediaries, is sent towards the market.

Thus, the presence of a distribution channel implies the distribution of functions and flows between participants in the exchange. The key question in networking is not whether these functions and flows must exist, but rather which of the channel participants will do them. One can observe a huge abundance in the distribution of functions not only for various markets but also within the same market.

High costs are constantly driving companies to look for better ways to market. At the same time, it is clear that sales functions can be transferred, but they cannot be excluded. From the point of view of the company, the transfer of these functions to intermediaries is justified to the extent that, due to their own specialization, they are able to do them more efficiently and at lower costs than the manufacturer himself. The privileged position of marketers (distributors) in relation to manufacturers is due to five factors:

reduction in the number of contacts;

economies of scale;

reduction of functional discrepancy;

assortment improvement;

service improvement.

The reduction in the number of contacts is ensured by the method of organizing trade through a wholesaler. Let's give an example: a product of this group is produced by 3 manufacturers and consumed by 5 consumers. Two more common schemes for marketing products are possible:

without intermediaries, directly - each manufacturer is connected with each consumer; the number of connections in such a scheme is equal to the product of the number of manufacturers and the number of consumers, i.e. 3 X 5 = 15;

through an intermediary - each manufacturer and each consumer is connected only with an intermediary; the number of connections in such a scheme is equal to the sum of the number of manufacturers and the number of consumers, i.e. 3 +5 = 8. A similar marketing scheme, also called centralized, is more efficient, as it reduces the number of actions that ensure the coordination of supply and demand.

Economies of scale in sales operations come from grouping offers from many manufacturers. An intermediary is capable of doing certain functions to a greater extent than a single manufacturer. For example, sales representative costs wholesale company can be distributed among several manufacturers. As a result, the cost of performing the sales function is reduced compared to the option when each manufacturer is required to have its own sales staff.

Reducing the functional discrepancy between deliveries and customers is also ensured by the organization of sales through intermediaries. By purchasing large quantities of products, storing them and breaking them down into small batches, wholesalers and retailers enable manufacturers and consumers to deal with supply scales that are more convenient for them. In the absence of intermediaries, the manufacturer was required to produce products in small batches to accommodate the size of orders coming from individual customers. In addition, he would be obliged to create huge reserves. If one organization takes on two different types of activities, for example, creation and marketing, for which rational scales are different, it is obliged to perform at least one of these types on a scale that is greater or less than rational. The consequence of this will be an increase in costs compared to the case when both acts are performed separately at their own rational level.

Improving the range of products is one of the requirements of consumers. The assortment offered by the manufacturer is largely determined by the requirements of uniformity in production, the raw materials used, technological knowledge, etc., while the assortment that interests the buyer is dictated by the situation of consumption and the interchangeability of products. Traditionally, consumers need a variety of products in small quantities, while manufacturers create a limited range of products in huge sizes. Therefore, the role of intermediaries is to provide product contrast so that buyers can purchase multiple products in one transaction, saving their time and effort. Similar savings are created for the manufacturer. For example, a company that specializes in tools of a certain type will not be able to open own stores if you don't start giving in them wide range of products traditionally available in stores of this type. Of course, it is easier for a merchant to secure this assortment by contacting several manufacturers, especially if they are competitors.

Better customer service is provided when the intermediary does it, because. He is closer to the buyer, knows better the local conditions and the conditions for the implementation of the product. It is easier for the intermediary to adapt to local conditions, provide the best after-sales service and other services. But this superiority of intermediaries is not unshakable. In a competitive environment, intermediaries constantly have to improve the quality of services and reduce costs.

Distribution channel selection

The choice of the structure of the distribution channel comes down to solving the issue of the distribution of responsibilities between the participants in the exchange process. From the company's point of view, first of all it is necessary to decide whether to entrust someone or part of the sales functions, and if so, to what extent and under what conditions.

There are four classes of intermediaries that can be included in a distribution channel:

wholesalers;

retailers;

agents and brokers;

commercial service companies.

Detailed description intermediaries was considered by me in the second chapter. The vertical structure of the channel is characterized by the number of levels separating the producer from the end user (without intermediaries, with one or more intermediaries). From a manufacturer's point of view, the longer the channel, the more difficult it is to control.

The company traditionally resorts to the use of multiple distribution channels, or with the aim of making a competitive situation, rivalry between merchants, or with the aim of entering into several parts with different shopping habits. For example, Philips branded equipment is sold in discount markets, hypermarkets, large stores, novelty stores, up to retail stores owned by Philips itself. Korean company While selling its products on the Russian market through distributors and a soon-expanding dealer network, Samsung Electronics is actively creating its own branded stores, warehouses and service centers for its own products.

Table 3.1. Distribution channel selection criteria

Considered properties Straight indirect channel Features and conditions for the implementation of the choice
channel little long
1. buyers properties: countless ** *** the principle of reducing the number of contacts plays an important role
high concentration ** *** low cost per contact
major purchases ***
irregular purchases ** *** inflated costs with frequent and small costs
operational supply ** *** availability of stocks near the point of sale
2. Features of products:
consumable products *** need for fast delivery
huge volumes *** ** minimization of transport operations
technically simple ** *** low maintenance requirements
non-standardized *** the product must be adapted to specific needs
under launch *** ** need careful monitoring of the new product
high value *** contact costs will soon be amortized
3. Feature of the company:
limited financial resources ** *** selling costs proportional to the size of sales
full range *** ** the company can offer a full service
good control required *** minimizing the number of screens between the company and its market
wide popularity ** *** good reception from the marketing system
wide coverage ** *** sales must be strong

*** more preferred channel.

In the sales network, you can follow different variants competition:

between intermediaries of the same level of the distribution network;

interspecific horizontal competition, for example, competition between self-service and full service;

vertical competition i.e. Competition between intermediaries of a higher and lower level, for example, retailers (in the structure of the distribution channel they occupy a position below wholesalers) can act as a wholesaler, and wholesalers - retailers;

competition between distribution channels in general, for example, the conventional distribution network competes with the sale of products through the mail.

The evolution of the marketing system, which has taken place in recent decades, has sharply intensified competition between intermediaries of all types. One of the manifestations of this competition was the development of vertical marketing systems, which have the following varieties:

built-in vertical marketing systems(Navy), combining in one person the manufacturer of the product and the marketer;

contractual IUDs, which in turn have the following varieties: voluntary purposes under the auspices of a wholesaler; retailers' cooperatives; franchise systems;

controlled by the Navy, characterized by a non-contractual form of cooperation between the manufacturer and the distribution network.

The choice of a specific distribution channel is determined primarily by the restrictions imposed by the target market, buyer behavior factors, product and company features, and other factors (Table 3.1.).

The organization of a marketing system for goods for industrial purposes requires an integrated rational approach and the solution of a number of problems ultimately associated with determining the effectiveness of a particular system for organizing marketing activities. For the sale of PPTN, the main form of sale is personal. Thus, the importance and necessity of establishing extensive personal contacts with potential buyers and business partners is growing.

In the general case, when organizing the sale of PPTN, as well as consumer goods, it is possible to use two main methods:

Selling products directly to the end consumer through its own distribution network;

Sales of products through intermediaries.

Wholesalers, distributors, dealers, sales and marketing agents, brokers, etc. can act as intermediaries.

Organization of the company's own sales network

The company's own distribution network consists of the company's sales department and a group of dependent intermediaries. In this case, the intermediary is not the owner of the goods, he sells it from the company's warehouse or from his own warehouse, where the goods are on consignment terms, and has a certain percentage from each transaction. Thus, the agent is directly subordinate to the sales department, carries out its orders, conducts the general marketing and sales policy of the company and is obliged to regularly submit standard reports about its activities, the situation on the market and the customer segments it serves.

Organizing your own distribution network is expensive. Therefore, it is not recommended for enterprises serving narrow market segments and individual non-permanent customers.

Benefits of creating your own distribution network:

1. Organization of direct interaction with end consumers of products, which allows you to organize direct access to primary information about the needs and preferences of the main buyers, customer motivation, market development trends - supply and demand, the activities of competitors in the market, the attitude of buyers to the company's products and competitors, etc. .P. Thus, direct contacts allow you to "feel" market demand, to have primary information, which ultimately allows you to form an optimal market strategy.

2. Own sales network is focused on the sale of only the company's products, all the efforts of managers and sales agents are distributed according to the general marketing and sales strategy of the company.

3. The possibility of organizing a strict system of accounting and control over the movement of goods, sales volumes, the return of goods and its causes is increasing.

According to the latest US industrial censuses, almost half of the USPs were sold through their own distribution units.

The high initial costs of maintaining their own distribution network push industrial companies to use various kinds independent intermediaries.

The expediency of their use is undeniable when introducing a company into new sales markets, when its own sales system has not yet been created. It is also required in the main market if the network is represented by companies that can compete strongly with the sales divisions of the company, both because of their financial strength and because of good market development and close contacts with consumers. Establishing links with independent sales organizations can help to squeeze out of the market competing firms that cooperate with the same agents on less favorable terms.

Also, such a system can be used when a company is interested in providing the consumer with related services that it is not able to provide on its own, while sales firms are engaged in this. Most often, an industrial company combines options for using its own distribution network and dependent and independent intermediaries.

Starting with the establishment of an independent distribution network and gaining a foothold in a market of targeted interest, industrial firms are trying to turn independent intermediaries into dependents by buying shares, creating a personal union, and so on. When deciding on the need for costs for the financial subordination of an intermediary, the company compares them with the costs of creating its own distribution network.

The organization of the distribution network, among other things, depends on 3 main factors: the type of product, the nature of the consumer and the geographical extent of the market. In accordance with this, there are 3 main types of organization of the distribution network: by region, by type of product and by type of consumer.

The type of sales organization also differs according to the stages of the life cycle. During the implementation and growth phases, the specialization of sales agents in certain product groups is recommended. This is due to the task of bringing to the consumer information about the benefits of products and teaching him how to use them. Maturity and decline - the organization of marketing by groups of consumers, depending on the way they use the product. In this case, the tasks of fully satisfying the requirements of the buyer, clarifying his requests for improving the quality and models of the product, providing him with specialized services in accordance with the specific method of using the product by this consumer come to the fore. Thus, the introduction of IBM electronic computer science in the early stages was carried out through the specialization of sales agents in the sale certain types computers. From the end of the 50s. the company embarked on the path of organizing sales according to the method of specialization in industries using computer technology, which, among other things, made it possible to provide services to consumers in the implementation of specialized software packages. (Lavrov, Zlobin)

With the optimal product delivery scheme, a model is used that minimizes the cost of delivering products to the end user, as well as the time spent on delivery. Wherein important issue is the choice of types of distribution channels.

The distribution channel is understood as a number of organizations or individuals (individuals) involved in the process of bringing products to the end consumer, this is the path along which the manufacturer's products move.

Distribution channel participants - intermediaries - perform the following functions:

  • transport goods, bring them geographically closer to the location of end consumers;
  • store goods;
  • establish contacts with potential and real clients;
  • collect marketing information - about the state of the market and demand;
  • inform potential consumers about goods, advertise them and stimulate sales;
  • render Additional services to consumers - order picking, packaging, cutting, etc.
  • incur certain costs for organizing the activities of the channel - finance the channel;
  • bear financial and other types of risks on the functioning of the channels.

For the manufacturer, it is important to organize not only the first act of shipment of goods to a certain intermediary, but the entire chain of goods movement, which is characterized by the number of levels of the distribution channel. When agreeing on the sale of goods, they usually also agree on distribution channels in order to bring them in line with the needs of the consumer.

Distribution channel level - any intermediary that performs certain work to bring the product and ownership of it closer to the end consumer (Golubkov). The number of independent layers determines the length of the distribution channel. the simplest is the direct marketing channel, consisting of a manufacturer selling the product directly to the consumer. The shorter the chain, the more selling costs the manufacturer incurs.

Among intermediaries, the following types are distinguished - wholesalers, distributors, dealers, agents, brokers, traveling salesmen, jobbers, etc. Let's consider the main ones.

Wholesale firms are trading enterprises that have a wide range of PTN products, as well as provide various services to consumers - transportation and delivery, storage, picking, cutting, packaging, etc.

Wholesale firms acquire goods in property, have their own own warehouses and stocks, vehicles, trademark. They trade on their own behalf, at their own peril and risk, at their own prices, which they receive by setting a certain mark-up for each type of product. Usually wholesale bases are located in industrial centers - places of accumulation and concentration of industrial consumers.

Wholesale firms can be large (annual turnover over $1 million), medium and small (annual turnover up to $200,000).

By selling to a small number of large wholesalers, a supplier can gain significant market share and minimize their sales and physical distribution costs. However, he risks that he may lose contact with the final consumers of the product, and therefore lose access to the channel of primary market information. Therefore, even in the case of high economic efficiency using large wholesalers, the manufacturer nevertheless ships part of the products directly to the largest consumers, or through its own sales divisions.

Manufacturers provide wholesale discounts only to large wholesale firms.

Often, in practice, suppliers believe that working with a supplier directly without an intermediary is more efficient. However, this is not always the case. It is not always possible for a small and medium industrial consumer to issue a large wholesale order to the manufacturer, so he does not receive a wholesale discount. In addition, he bears more transportation costs per unit of production than a large wholesale buyer, which ultimately leads to an increase in the cost of a unit of goods.

The main advantages of wholesale industrial firms are as follows:

1. The wholesale company has the ability to deliver goods faster. She has more warehouses than the manufacturer, they are scattered throughout the market closer to the consumer.

2. The services of an intermediary allow the buyer to save on the implementation of logistics and the amount of processing of accounting documentation. If you buy the entire required range from 1-2 wholesalers than each item from its individual manufacturer, then savings in transportation costs, logistics and processing of orders for material resources are clearly visible.

3. In some cases, the intermediary may offer goods for more low prices than the manufacturer.

4. An intermediary can become a source of information for the consumer about a product or market conditions. It publishes catalogs that can serve as a guide to quality, prices and the offer of similar products.

5. An intermediary in the person of a wholesale company can provide various kinds of services.

6. For a small regular buyer, a wholesaler can become an easily accessible source of obtaining a loan, preferential terms of payment, etc.

Distributors and Dealers

These types of intermediaries are one of the varieties of wholesalers, although often their rights under the contract are determined at the level of agents.

Distributors are also large wholesale buyers, they have their own warehouses and transport. However, most often they do not buy goods in full ownership. They have various kinds of discounts and preferential conditions for purchasing from a supplier - a commodity credit, conditions for the delivery of goods on consignment, a large deferred payment, the right of first shipment, etc. They receive these preferential conditions in exchange for the implementation of a strict market policy planned by the manufacturer in this market. Distributors are obliged to conduct extensive advertising and promotional work with the manufacturer's products, popularize the trademark, constantly expand the circle of regular customers, look for new promising customers, hold presentations, seminars and meetings with buyers of these products, etc. To receive all of the above benefits when purchasing goods prerequisite it may be impossible for a distributor to purchase and sell similar products from competing firms of the main supplier.

Most often, distributors serve certain geographical areas - regions. Some distributors receive exclusive rights to operate in the service area, which means that competitors cannot purchase and sell a similar supplier's product in this region.

Thus, the manufacturer uses the distributor usually as a means of popularizing his product and conquering a new market. As the this market the exclusive right is analyzed and the product is distributed through mass distribution channels.

The distributor can also be official. Official status does not mean exclusivity for sale. It only gives some advantages to the distributor and his customers in terms of prices, terms of delivery, service, etc. In each specific case, the possibilities and obligations of the distributor are stipulated in special contracts with the manufacturer or supplier of the goods.

Dealers, unlike distributors, are small wholesale buyers, all other duties and rights are similar to those of distributors. Most often, dealers are created by distributors to cover other regions and market segments and are directly subordinate to them. With an increase in sales volumes, a dealer can receive the status of a distributor, and vice versa.

Sales agents - persons representing the interests of certain manufacturers in the sale of their goods Sales agents receive their remuneration in the form of commissions. They do not buy goods in property, but sometimes they have inventory on consignment terms - payment for goods sold after certain equal periods of time.

Distinguish between a manufacturer's agent and a sales agent. The manufacturer's agent sells part of the manufacturer's products, is limited to a certain geographical area, has a consignment stock.

Distributor - serves consumers in a particular industry, regardless of location. Sales operations are carried out from the manufacturer's warehouse. Agents can be vendor dependent or independent. If they depend on a supplier, they may not be able to distribute similar products from competing suppliers.

The use of marketing agents is useful if the manufacturer produces one or a very narrow range of products with a limited sales volume in each of the market areas. A wholesale firm will not focus on one product that has a limited market. The agent trades no more than 30 items and will be more attentive to the product.

Main advantages of sales agents:

1. Selling costs are low - 5-6% of the sales volume, while for wholesalers - 13 - 25%.

2. Sales agents of any type are useful when entering new markets with a new product. He has extensive business connections and contacts and will make every effort to popularize the product in a new market.

3. The quality of the activities of sales agents is higher than that of wholesalers, since there is already a range of goods (up to 30 items).

The disadvantages of sales agents include the following:

1. The activities of sales agents cannot be controlled as fully as the activities of their sales department.

2. There is no flexibility in a situation where the situation requires competition in the main elements of marketing - price reduction, discounts, preferential terms of payment, provision of an additional range of services, etc.

3. With a significant sales volume, the cost of selling through an agent plus the costs of physical distribution can make for a rather expensive distribution system.

4. An agent that serves several suppliers is the object of competition among producers.

5. Agents most often cannot provide after-sales services because they do not have their own capacity.

Sales agents work on the basis of the conclusion of agency agreements - these are agreements concluded between the company and its sales agent for an indefinite period of time with the right to terminate them within a specified period. There are agreements on the scope of the rights and obligations of the parties. There are also agreements with the granting of exclusive rights.

Brokers and Commissioners

These are types of sales agents. The commission agent acts as an agent of the manufacturer, sells the goods on a consignment basis, that is, does not guarantee sales and works without a contract.

A broker is a person who, independently or from a brokerage house, works on the stock exchange, where, by order of the manufacturer, he sells part of the products. Products for admission to circulation on the exchange must meet certain requirements, namely, to have a grade and a standard adopted in trade.

The use of a particular intermediary may also depend on the type of product being distributed. So, for example, spare parts for machines are usually distributed through a wide network of agents with warehouses, which makes it possible to ensure the fulfillment of requests from foreign firms in a fairly short time. In the mid-80s, in the practice of well-organized foreign firms, the delivery of spare parts to consumers within 3-5 days from the date of receipt of the order became the norm. The English company "Land Rover", the Japanese "Honda", the American "IBM" and a number of others began to guarantee the delivery of spare parts to any part of the globe where their products are available within 24 hours. Such a maintenance organization requires the creation of warehouses in countries and regions of sale with sufficient reserves of spare parts, the availability of appropriate Vehicle and trained professionals.

When choosing one or another intermediary, one of the most important points is the organization of the reporting system. The intermediary, regardless of its type, is obliged to provide information in the following areas:

1. Reports on the progress and results of the sale of goods;

2. Information about the market, including regular and complete reports on the activities of competitors, price levels, fluctuations in market conditions;

3. Sales activity plan;

4. Name and characteristics of clients available to the intermediary;

5. A reasonable amount of information about the activities of the intermediary for the reporting period. The supplier company should reserve the right to receive information about the work of the intermediary with the goods of other companies in order to be sure that its product is being promoted vigorously enough.

Features of the organization of marketing of raw materials (industrial raw materials and food) are as follows:

1. For many types of raw materials, the degree of monopolization of production and trade has sharply increased. The emergence of transnational corporations (TNCs), which have subjugated production and marketing on a global scale, has led to a significant narrowing of the free market.

2. Developing countries, which are the main suppliers of raw materials, in response to the monopolization of commodity markets, formed commodity associations that united producers of a particular product. They develop model contracts for the supply of raw materials that protect the interests of producing countries.

3. The sale of mineral raw materials and fuel is characterized by a tendency towards an increase in the role of long-term contractual relations. The development of such relations is promoted by the process of deepening the division of labor, specialization and cooperation of economic activity.

In connection with these features, the marketing system for raw materials and food products is built in such a way that direct sales traditionally occupy a significant place. This reflects the tendency to eliminate the intermediary link in trade (with the exception of machinery and equipment, where the existence of an intermediary is explained by the specifics of the conditions of sale). Direct sales allow you to establish strong ties with manufacturers and consumers, respond more flexibly to market changes, and adapt to its requirements.

Commodities are a particularly attractive target for long-term purchase and sale transactions. Unlike manufactured products, they practically do not undergo obsolescence. The constant quality of the goods supplied on a long-term basis is in the interests of not only the seller, but also the buyer. Moreover, if the technology of an enterprise supplied under a long-term contract is focused on a strictly defined grade of raw materials and materials (for example, ore with a constant metal content), then the buyer is not even interested in improving the quality of the purchased product. Characteristically, approximately 85-90% of the total cost of raw materials sold under long-term commercial contracts falls on only four commodities: oil, natural gas, hard coal and iron ore.

Direct sales of commodities end customer are explained not only by cost savings (payment for intermediary services), but also by the fact that the product itself, by its nature, does not require basically any additional operations before or during its use, for which intermediaries are used. However, some share of raw materials and food products sold through an intermediary. The reasons may be the following:

1. This form of sale may have historically developed in a particular market (for example, the timber market in the UK);

2. The services of an intermediary can be used when entering the market with a new product, the stable sale of which the seller is not yet sure of. In such cases, the intermediary is involved not only to sell the product, but also to advertise it, collect information about potential consumers, about the forms and methods of trading competitors.

The services of an intermediary may be required to improve the organization of sales, for example, if there are a large number of medium and small consumer firms in the country. In such cases, the question often arises about the difficulties of transporting many consignments of small quantities of cargo (dead freight), picking consignments according to the assortment (increase in overhead costs), etc. For example, V/O "Exportles" encountered such phenomena when supplying lumber to the German market. The services of brokers are necessary here for the reason that the number of large buyers is limited, and under these conditions brokers are of great help, engaged in the formation of shipping parties for a number of medium and small buyers. The duties of brokers also include the study of the economic situation in the country, and especially in the forest-consuming sectors of the economy, and the transfer of this information and recommendations to the association. In addition, brokers monitor the price movements of competitors and analyze their trends. Much attention in the work of brokers is paid to the collection of materials on the quantities and specifications of sawn timber sold on the country's market, and on the commodity stocks in the warehouses of importers and consumers.

In the markets for raw materials and food products, special forms of trade have historically developed - exchanges and auctions.

Commodity exchanges are a special kind of permanent market where purchase and sale transactions are made for mass raw materials and food products that have generic characteristics, are qualitatively homogeneous and interchangeable. On the stock exchanges, goods are usually not available. It is sold and bought without presentation and inspection in accordance with established standards and samples. The conclusion of transactions takes place on the basis of standard contracts developed by the exchange.

The objects of exchange trade are currently about 70 goods, which account for 15-20% of international trade. They can be combined into several groups:

Cereals (wheat, corn, oats, rye, barley);

Non-ferrous and precious metals (copper, tin, lead, zinc, nickel, aluminum, silver, gold);

Food products (sugar, coffee, cocoa);

Textile raw materials (cotton, azhut, natural and artificial silk, washed wool);

Industrial raw materials (rubber, lumber);

Oilseeds (linseed and cottonseed, soybeans, beans, soybean oil).

The value of the exchanges of real goods has fallen sharply, the exchanges have turned into futures. The underlying reasons are:

1. The share of raw materials and food products in world trade has decreased;

2. The degree of monopolization of commodity markets has increased and direct deliveries on the basis of long-term contracts have expanded;

3. Received the distribution of intergovernmental commodity agreements, state regulation agricultural and foreign trade.

However, the role of exchanges in international and domestic trade is significant. Exchanges are an institution for determining the level of world and domestic prices.

Chicago Mercantile Exchange

This is the largest and oldest exchange in the world where contracts for commodities are traded. The exchange was founded in 1848, and more than half of America's trade transactions are carried out here.

Since 1970, the Chicago Mercantile Exchange has broken its own record for trading volume every previous year. Business Week magazine named the Chicago Stock Exchange as the world's key contract trading venue.

Contracts are legal agreements for the sale or purchase of goods in a given month with the right to resell. Under the terms of most contracts, the goods are delivered in the future - in a year or two. In each department (pit) of the exchange, there are certain places intended for different months of delivery.

The Chicago Mercantile Exchange trades contracts for 17 different types of commodities - soybean oil, flour, wheat, soybeans, corn, oats, fnnera, frozen chicken, obligations of large trading enterprises, treasury notes, gold, silver, bills and government bonds.

All products are grouped into special departments. Only exchange members are allowed to trade in these departments. They can be identified by the yellow cards on the jackets that traders are required to wear while trading. The black letters on the cards represent the initials of the traders. Jacket colors don't matter.

Around the departments of trade are tables with telephones and teletypes. There are more than 4,000 telephone lines here, which accept orders from various customers. For each order received by phone, a card is issued, which indicates the exact time of receipt of the order. The order card is then handed over to the messenger who delivers it to the trader in the exchange department. An open auction is organized on the exchange, where there is no central auctioneer, so that each trader has an equal opportunity to offer his price for contracts. Trading here takes place through calls and hand signals. The palm turned outward means that the trader is offering to sell the contract. The palm turned towards itself means that he offers to buy. Fingers placed vertically show the number of contracts, horizontally - the price of the contract. The minimum price change is 1/4 cent per bushel. One contract equals 5,000 bushels.

After the deal is done, the trader writes down the information on the order and drops this order on the steps near the sales department. The messenger collects these orders and takes them to the telephones, which let the customer know that his order has been completed. Each trader also notes all trades that he made during the whole day on his own documents and lets the speaker know about price changes. Price speakers sit in kaffirs at the border of the department. They put a new price on the computer. This price is advertised on electronic screens on both sides trading floor. Since this exchange is an international trading center, these prices are also sent to exchanges around the world within a few minutes.

There are two groups of traders on the exchange. One of them is speculators, the other is representatives of commercial enterprises and merchants who want to protect themselves from price changes. The latter is of economic importance. Examples include farmers, exporters and manufacturing enterprises.

Speculators are entities that buy and sell contracts at their own expense and risk - a risk that genuine buyers and sellers do not want to be exposed to.

Less than 20% of all contracts traded on the exchange end up in actual delivery. If someone wants to buy a product with a delivery obligation, he buys this product in the relevant market. The Chicago Mercantile Exchange has a significant cash market for grain. This market accounts for less than 5% of exchange trading volume.

Personal selling is the most effective form of commercial communication between a manufacturer and consumers. Recently, there has been a trend towards distribution by personal selling of consumer goods. Thus, a whole complex of marketing activities based on personal selling arose. It's called multi-level marketing.

Multi-level marketing is the organization of a company's sales system on the principle of "multiplication" of distributors, who, thanks to this, have the opportunity to receive multiplex income. Such well-known networks of companies as Herbalife, Mary-Kay cosmetics and Zeptor operate on the principle of multi-level marketing. Through multi-level marketing, almost any product that can be bought in a store can be distributed. Multilevel marketing assumes that you create a network of distributors, each of which in turn attracts new distributors to this network, and so on.

The multi-level marketing system is currently used only for the distribution of consumer goods. However, the very principle of personal selling as a method of commercial communication is used both in the sale of consumer goods and in the sale of PPTN.

If you reduce the sale to its simplest expression, then you can always distinguish two sides - buying and selling. The act of sale can be expressed in terms of communication theory - the relationship between the transmitting and receiving parties (Fig.).

Thus, the seller transmits information to the client in an encoded form through the use of any method of sale - direct communication, by phone, by mail. The buyer perceives the message, deciphers it into a language understandable only to him and assimilates it. The communication process is hindered by various kinds of interference, which can be divided into internal and external. Internal hindrances include psychological hindrances - prejudices, habits, problems, troubles, personality type, etc. External interference includes interference that prevents the client from positively perceiving the information being communicated - extraneous conversations, noises, fuss around, etc. These interferences are detrimental because they contribute to the gap between the main links of the communication process. The final link in the process is feedback, which enables the seller to control and correct the flow of information sent to the client due to the response received.

The communication process is influenced by background variables, which include the personality of the seller, the perception of the partner and the selling situation, hidden psychological relationships, the explicit and implied goals of the partners, and the feelings experienced by the client.

This diagram represents two main subjects of communication - the buyer and the seller - as equal participants in the process. In the process of communication, it is necessary to achieve a connection with the buyer. If the connection occurs and the buyer is not put on the defensive, the sale is more likely to take place. On the contrary, if communication does not occur, if the buyer feels coerced, he is likely to resist the act of selling. It follows that the correct approach would be to ensure a real, meaningful meeting of the two partners.

Many experts consider the sale as a certain sequence of actions, brought to automatism and excluding any individual involvement. According to this approach, everything is about moving through the stages, logically and inexorably following one after another. This theory assumes the possibility of manipulating people and tends to the behaviorist definition of the consumer, whose behavior is supposedly subject to rigid and systematized laws. It is enough to know these laws, and in addition, not to disregard the signals given by a person in order to be able to sell completely calmly and for sure.

However, it is unlikely that the sale can be reduced to a certain set of predictable actions and events. The consumer is not in our control. Moreover, the development of consumer rights protection unions, the emergence of a whole science of "consumering", on the one hand, and the presence of unexplored depths in human nature, on the other hand, indicate that the consumer is absolutely indecipherable and is not a controllable object.

Rather, the definition of sale offered by the French researcher Philippe Coffret would be more appropriate: "Sale is an oral exchange between the buyer and the seller, during which the seller makes a presentation of the goods for the purpose of concluding a transaction."

Sale Styles

It is impossible to talk about selling styles without remembering the typology of salespeople given by R. Blake and J. Mouton. It is both a reference book and a kind of anthology of various forms of sale, considered from the point of view of their correspondence to the personality (individuality) of the seller.

The authors proceed from the idea that any seller can be accurately characterized by the degree of his interest in the sale and the degree of his attention to the client. If we put the first indicator on the abscissa axis, and the second - on the ordinate axis, we get a typical characteristic of a particular seller (Fig.).

Using the same grid, a client can also be identified, but at the same time, an indicator of the degree of client interest in the seller is plotted on the y-axis (Fig.).

The combination of two grids, that is, the meeting of the seller with the client, gives a new typology of forms or styles of sale, characterizes the atmosphere (table).

Questions related to sales styles are also of interest to psychologists, especially in metrological works related to the problem of determining the propensity for the profession of a salesperson. Thus, in the work, which is essentially a test questionnaire for determining abilities in the field of sales, two major forms of selling are mentioned - "receptive" and "aggressive".

The "perceiving" form is more suitable for sales in a certain place, well-established, or for products that are reliably introduced to the market, that is, to situations where it is mainly about maintaining good relations with the client, about understanding his problems, his difficulties. Conversely, the "aggressive" form is more appropriate for home sales, situations in which competition becomes important, or when you need to find new customers, introduce a new product to the market, etc.

However, it can be easily argued that there are as many forms of selling as there are sellers.

Sales stages

A sale is a transaction between people in which each of the participants has his own task and pursues his own goal. This is not a random meeting, not a simple conversation, this is a commercial activity in which everyone defends his interest, plays his role, uses his abilities and, in the end, exchanges a favor with a partner, making every effort to ensure that all the conditions of exchange in this the deal was the most favorable for him.

In this sense, the act of sale can be viewed as a negotiation, because the interests of the parties do not always coincide.

These negotiations take place between two individuals, each with their own status, role, motivations, real and imagined desires. therefore, in the process of selling, streams of likes and dislikes arise and emotional ties are intangibly formed or broken.

The act of selling is a negotiation (the interests of the parties are in fact neither completely reconcilable nor completely irreconcilable), which give impetus to the relationship) this is an emotional part), mediated by some object (this is part of the laws of the market and the marketing methods that correspond to them), - an item that meets the expectations or needs of persons called real or potential customers (part of marketing and related methods).

This definition, which brings together the elements of the entire selling process, allows us to understand why various authors and specialists so often use expressions like "sales scale", "sales stages", etc.

Really:

Negotiate: This requires the ability to persuade, reasonably respond to objections and the skillful use of expressive means of oral speech.

Establish a relationship: To do this, you need to know how to accept a client or make a contact, approach the matter in the right way, closely monitor the development of the relationship and complete the transaction at the exact moment when it is required.

Satisfy the need: to capture or find the motives of the customer to buy, that is, the key points of his interest, to share the customer's concern and listen carefully to his complaints or criticism.

By grouping or connecting all of the listed elements, one can imagine the "sales scale" that J.-F. Krolar offers as a general approach to the study of the selling process. "Scale of sale" includes:

Reception of the client and establishment of contact;

Identification of needs and listening;

Argumentation and presentation of goods;

Implementation of the sale.

Table EFFICIENCY OF SELLING STYLES AND SELLING ATMOSPHERE

Client style
Seller style

Passivity

Equilibrium

Indifference (does it matter)

Disappointment

An unfortunate waste of time

Patience and long time

Serenity, calmness, clarity

chatter

Irritability

conformism

Difficulty, resistance

Routine or boredom (the mechanical act of selling)

Lack of personal responsibility

Addiction

Strong tension

promiscuity

Hoax

bickering

Academicism

Coercion, misunderstanding

Ease

Satisfaction

Legend: +: Possibly effective: 0: Average between effective and ineffective: -: Possibly ineffective.

The organization of a system for marketing goods requires an integrated, rational approach and the solution of a number of problems ultimately associated with determining the effectiveness of a particular system for organizing marketing activities. For sales, the main form of sale is personal. Thus, the importance and necessity of establishing extensive personal contacts with potential buyers and business partners is growing. In general, when organizing sales, it is possible to use two main methods:

Selling products directly to the end consumer through its own distribution network;

Sales of products through intermediaries.

Wholesalers, distributors, dealers, sales and marketing agents, brokers, etc. can act as intermediaries.

Organization of the company's own sales network

The company's own distribution network consists of the company's sales department and a group of dependent intermediaries. In this case, the intermediary is not the owner of the goods, he sells it from the company's warehouse or from his own warehouse, where the goods are on consignment terms, and has a certain percentage from each transaction. Thus, the agent is directly subordinate to the sales department, carries out its orders, conducts the general marketing and sales policy of the company and is obliged to regularly submit standard reports on its activities, on the market situation and the customer segments that it serves.

Organizing your own distribution network is expensive. Therefore, it is not recommended for enterprises serving narrow market segments and individual non-permanent customers.

Benefits of creating your own distribution network:

1. Organization of direct interaction with end consumers of products, which allows you to organize direct access to primary information about the needs and preferences of the main buyers, customer motivation, market development trends - supply and demand, the activities of competitors in the market, the attitude of buyers to the company's products and competitors, etc. .P. Thus, direct contacts allow you to "feel" the market demand, to have primary information, which ultimately allows you to form an optimal market strategy.

2. Own sales network is focused on the sale of only the company's products, all the efforts of managers and sales agents are distributed according to the general marketing and sales strategy of the company.

3. The possibility of organizing a strict system of accounting and control over the movement of goods, sales volumes, the return of goods and its causes is increasing.

The high initial costs of maintaining their own distribution network are pushing industrial companies to use various types of independent intermediaries.


The expediency of their use is undeniable when introducing a company into new sales markets, when its own sales system has not yet been created. It is also required in the main market if the network is represented by companies that can compete strongly with the sales divisions of the company, both because of their financial strength and because of good market development and close contacts with consumers. Establishing links with independent sales organizations can help to squeeze out of the market of competing firms that cooperate with the same agents on less favorable terms.

Also, such a system can be used when a company is interested in providing the consumer with related services that it is not able to provide on its own, while sales firms are engaged in this. Most often, an industrial company combines options for using its own distribution network and dependent and independent intermediaries.

Starting with the establishment of an independent distribution network and gaining a foothold in a market of targeted interest, industrial firms are trying to turn independent intermediaries into dependents by buying shares, creating a personal union, and so on. When deciding on the need for costs for the financial subordination of an intermediary, the company compares them with the costs of creating its own distribution network.

The organization of the distribution network, among other things, depends on 3 main factors: the type of product, the nature of the consumer and the geographical extent of the market. In accordance with this, there are 3 main types of organization of the distribution network: by region, by type of product and by type of consumer.

The type of sales organization also differs according to the stages of the life cycle. During the implementation and growth phases, the specialization of sales agents in certain product groups is recommended. This is due to the task of bringing to the consumer information about the benefits of products and teaching him how to use them. Maturity and decline - the organization of marketing by groups of consumers, depending on the way they use the product. In this case, the tasks of fully satisfying the requirements of the buyer, clarifying his requests for improving the quality and models of the product, providing him with specialized services in accordance with the specific method of using the product by this consumer are brought to the fore.

Sales network organization

For most markets, the physical and/or psychological distance between manufacturers and end users is such that effective matching of supply and demand requires intermediaries. The need for a distribution network is due to the fact that the manufacturer is unable to assume all the responsibilities and functions arising from the requirements of free exchange in accordance with the expectations of potential consumers. Recourse to intermediaries means for firms to lose control over certain elements of the commercialization process.

Therefore, for a company, the choice of a distribution network (distribution channels) is a strategic decision that must be compatible not only with the expectations in the target segment, but also with its own goals.

A distribution network can be defined as a structure formed by partners participating in a process of competitive exchange for the purpose of placing goods and services at the disposal of individual consumers or industrial users. These partners are manufacturers, resellers and end users - buyers. Any sales channel performs a certain set of functions necessary for the exchange.

Sales Functions:

studying the results of market segmentation and advertising planning;

conclusion of contracts with consumers or intermediaries;

accounting and control of the implementation of contracts;

development of a plan for the shipment of goods to customers;

definition of sales channels;

organization of reception, storage, packaging, sorting and shipment of goods to customers;

information, resource and technical support for the sale of goods;

sales promotion;

establishing consumer feedback and regulation.

The performance of the considered functions leads to the emergence of commercial distribution flows between the participants in the exchange process, directed in mutually opposite directions. In total, five types of flows can be distinguished in the distribution channel:

the flow of ownership: the transfer of ownership of goods from one owner to another;

physical flow: the sequential physical movement of goods from the manufacturer through intermediaries to the final consumer;

order flow: orders coming from buyers and intermediaries and sent to manufacturers;

financial flow: various payments, bills, commissions that move from the end user to the manufacturer and intermediaries;

the flow of information: this flow is distributed in two directions - information about the market moves towards the manufacturer, information about the goods offered, at the initiative of the manufacturer and intermediaries, is sent towards the market.

Thus, the presence of a distribution channel implies the distribution of functions and flows between the participants in the exchange. The key question in networking is not whether these functions and flows should exist, but rather which of the channel participants will perform them. One can observe great diversity in the distribution of functions not only for different markets, but also within the same market.

The high level of costs constantly encourages businesses to look for better marketing methods. At the same time, it is obvious that sales functions can be transferred, but they cannot be excluded. From the point of view of the firm, the transfer of these functions to intermediaries is justified to the extent that, due to their specialization, they are able to perform them more efficiently and at lower costs than the manufacturer himself. The privileged position of marketers (distributors) in relation to manufacturers is due to five factors:

reduction in the number of contacts;

economies of scale;

reduction of functional discrepancy;

assortment improvement;

service improvement.

Reducing the number of contacts is ensured by organizing trade through a wholesaler. Let's give an example: a product of this group is produced by 3 manufacturers, and 5 consumers consume it. There are two most simple schemes for the sale of goods:

without intermediaries, directly - each manufacturer is connected with each consumer; the number of connections in such a scheme is equal to the product of the number of manufacturers and the number of consumers, i.e. 3 x 5 = 15;

through an intermediary - each manufacturer and each consumer is connected only with an intermediary; the number of connections in such a scheme is equal to the sum of the number of producers and the number of consumers, i.e. 3 +5 = 8. Such a sales scheme, also called centralized, is more efficient, as it reduces the number of actions that ensure the coordination of supply and demand.

Economies of scale in marketing operations are obtained by grouping the offers of many manufacturers. An intermediary is capable of performing certain functions to a greater extent than an individual manufacturer. For example, the costs of a wholesaler's sales representative may be spread over several manufacturers. As a result, the cost of performing the sales function is reduced compared to the option when each manufacturer must have its own sales staff.

Reducing the functional discrepancy between supplies and customers is also ensured by the organization of sales through intermediaries. By purchasing large quantities of goods, ensuring their storage and breaking into small lots, wholesalers and retailers enable manufacturers and consumers to deal with more convenient scales of supply. In the absence of intermediaries, the manufacturer had to produce goods in small batches in order to adapt to the volume of orders coming from individual buyers. In addition, he would be forced to create large reserves. If one organization takes on two different types activities, such as production and marketing, for which the optimal scale is different, it is forced to carry out at least one of these types on a scale that is greater or less than optimal. The consequence of this will be an increase in costs compared to the case when both activities are performed separately at their optimal level.

Improving the range of goods is one of the requirements of consumers. The assortment offered by the manufacturer is largely determined by the requirements of uniformity in production, the raw materials used, technological knowledge, etc., while the assortment that interests the buyer is dictated by the situation of consumption and the interchangeability of goods. Typically, consumers need a variety of goods in small quantities, while manufacturers produce a limited set of goods in large quantities. Therefore, the role of intermediaries is to provide a variety of goods so that buyers can purchase several goods in one transaction, saving their time and necessary effort. Similar savings are created for the manufacturer. For example, a firm that specializes in tools of a certain type will not be able to open its own stores unless it begins to offer them a wide range of products that are usually found in stores of this type. Obviously, it is easier for a trader to secure this range by contacting several manufacturers, especially if they are competitors.

Better customer service is provided when the intermediary does it. he is closer to the buyer, knows better the local conditions and conditions for the use of the goods. It is easier for the intermediary to adapt to local conditions, provide better after-sales service and other services. However, this dominance of intermediaries is not unshakable. In a competitive environment, intermediaries constantly have to improve the quality of services and reduce costs.