Selection of distributors when building a sales strategy

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At the same time, large distributors are able to hold large volumes of inventory and provide high quality services.

The sixth step involves activities to establish relationships among the participants in the sales channel. These include trade intermediaries, companies and individuals who resell products on a commercial basis.

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 new zealand email 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.