Wholesale departments and offices of manufacturers, Various...

Wholesale branches and offices of manufacturers

The third major variety of wholesale trade consists of transactions carried out by sellers and buyers independently, without the involvement of independent wholesalers. There are two types of enterprises engaged in such activities.

1. Sales offices and offices. Producers often acquire their own sales offices and offices to keep the activities of inventory management, sales and incentives under more strict control. Sales offices store inventory and are found in such industries as forestry, the production of auto, motorcycle equipment and parts. Sales offices do not store inventories and are most often found in the field of textile and haberdashery goods. The share of sales offices and offices accounts for about 11% of the total number of wholesale establishments and 36% of total wholesale turnover.

2. Procurement offices. The purchasing office plays roughly the same role as brokers or agents, but is a structural subdivision of the purchasing organization.

Various specialized wholesalers

In a number of industries, there are own specialized wholesale organizations. Wholesalers-buyers of agricultural products purchase products from farmers and collect them into large lots for shipment to food industry enterprises, bakeries, bakeries and buyers on behalf of state institutions. Wholesale oil depots sell and deliver petroleum products to filling stations, other retailers. Wholesalers-auctioneers play a big role in those sectors of the economy, where consumers want to inspect the goods before making a purchase. These are, for example, tobacco and livestock markets.

The wholesale method of distribution of goods is widely used in many countries of the world, and in trade between states is, of course, the only one. From the foregoing, it can be concluded that it is an indirect marketing method, i.e. the one in which manufacturers use the services of various intermediaries to reach consumers.

Marketing strategies in the organization of the wholesale brokerage firm

In modern conditions, wholesale organizations are under increasing competition impact, which requires the use of various marketing strategies in the work.

Strategic Plan is the definition of the main ways to achieve the goal based on the real capabilities of the company.

Strategic marketing in the activities of wholesale-intermediary firms effectively promotes goods to the market. A strategic plan is being created to help the company take advantage of opportunities in an ever-changing environment. This is the process of establishing and maintaining a strategic match between the company's goals and capabilities, on the one hand, and the changing market opportunities on the other.

The purpose of strategic marketing - a detailed study of markets, consumer requests and the characteristics of their consumption. It is achieved by implementing the following directions.

1. Target market selection. Wholesalers should determine with which market they will work first, not trying to serve everyone. The target consumer group is selected based on the size (for example, only large retail traders), the need for certain services (credit, delivery, etc.). Within the target group, the wholesaler can identify the most profitable customers for themselves, develop tempting offers for them and establish closer relations with them.

2. Creating an assortment. This is the main task. The wholesaler must have the maximum assortment of the goods in sufficient quantity and at the same time bear minimum costs for storage. Consequently, the product range is formed at the most profitable positions.

3. Product promotion. Most wholesalers do not think too much about incentives. It is necessary to develop a general promotion strategy, including advertising of its activities, sales promotion, public relations.

4. Location of the enterprise. The presence of such conditions as low rent, automated warehouses, equipped office premises, etc. is required.

Business case 5. In the table. 7.2. Data on what percentage of the turnover of OOO BigStream Auto each client takes.

In 2011, the number of customers of LLC "BigStream Auto" increased, which positively affects the profit of the enterprise. The intensity of the acquisition of certain goods depends on the time of the year. For example, various antifreeze liquids and antifreezes are sold more actively in the cold period. As an example, Fig. 7.4 we will bring the sales of TOTAL antifreeze with the filling into canisters of 1 liter, 20 canisters in one package.

The intensity of selling TOTAL antifreeze depending on the season

Fig. 7.4. The intensity of sales of TOTAL antifreeze depending on the time of year

Analyzing the data from Table. 7.2, it can be concluded that the intensity of implementation for each client is different. Someone buys more products, some less.

Because OOO "BigStream Auto" is a wholesale intermediary, goods turnover occurs not only with customers, but also with suppliers of products. The volume of trade with suppliers of products (the volume of purchases) is presented in Table. 7.3.

Settlements with suppliers (costs for the purchase of products) occur under contracts at a particular point in time. After the end of the contract for a certain amount of cooperation can be prolonged. Contracts are in US dollars, which now creates additional profits for the company. In addition, settlements with suppliers are one of the components of the selling cost of production. The cost of production when buying it from suppliers includes the cost of the product itself, insurance and costs for transporting products from the United States.

When selling products to customers, its cost includes the following components:

• purchase price of products;

• Costs for customs clearance of cargo (payment of customs duties, excises, VAT).

When forming strategic marketing programs, a wholesale organization must first of all make a decision about the structure of goods and services sold, pricing policy, distribution of goods, advertising activities and promotion of sales. In Fig. 7.5 shows the direction of the marketing strategy, each of which can be realized independently.

The development of strategic marketing programs involves the application of the concept of strategic planning for each target segment in accordance with the chosen position in the market. The formation of a position of a wholesaler in the market is a choice of a specific place on it in relation to other intermediary organizations. This not only directs this intermediary to manage internal resources, but also opens up access to external material resources controlled by other intermediary structures. For example, if a wholesale intermediary has a steady contact with its suppliers, it knows the needs of consumers better and can offer the creation of new products for them.

Table 7.2

Shares of customers in the turnover of LLC "BigStream Auto"

Customer Name


Total, rubles.

1st half of 2010, rubles.

2 nd half of 2010, rubles.

1st half of 2011, rubles.

2 nd half of 2011, rubles.

LLC "Auto Real"

100 000.00

100 000.00


1 680 061.74



10 297 401.89

LLC "Alpha Plus

2 381 767.83

2 381 767.83

LLC "Eliar Com"



721 325.62



600 043.38

600 043.38

Total, rubles.


13 187 157.17




Table 7.3

Procurement volume of OOO "BigStream Auto", rub.

Provider Name

1st half of 2010

2 nd half of 2010

1st half of 2011

2nd half of 2011


America - Europe IT






APG, Inc.


983 323.77





6 138 005.43





Complex of marketing strategy

Fig. 7.5. Complex marketing strategy

An important direction in the formation of a marketing strategy is the company's product strategy . It can be materials that differ from each other in quality, price, service, etc. When forming a commodity strategy, tasks are set to identify the assortment of goods, brands, packaging and the introduction of new and already sold goods.

Any intermediary organization, developing a commodity strategy, determines the position in the market of each product in relation to the competitors, which determines its quality and price. The product strategy also takes into account the concept of the company's development on the market, the recognition of the goods by consumers, which will ensure the corresponding profit. At the same time, the commodity strategy should be accompanied by marketing research of the goods market, the choice of the target market and the product positioning strategy. It should be linked with such areas of strategic planning as the system of distribution of goods, pricing and promotion of goods.

The second line of activity of wholesale intermediary organizations is the product distribution strategy - the choice of ways of distributing the goods, the formation and management of distribution channels. This raises the problem of how to sell products: either through direct sales directly from manufacturers or through intermediaries. In each of these cases, in order to give preference to this or that variant, it is necessary to take into account a number of factors: the frequency and timing of deliveries, the location of consumers in the region, the scale of the manufacturing enterprises.

It is extremely important to correctly determine the distribution channel of goods.

Distribution channels - organizations acting as intermediaries or participants in the sale, accepting or helping to transfer ownership of the goods to another person; this is the way in which goods move from the supplier to the final consumer.

For the consumer and the manufacturer, the main thing is to promote it through the channel, which would ensure a reduction in total costs for the delivery of products in compliance with the conditions of safety and delivery times. As intermediaries can act as wholesale, and retail intermediary organizations.

Distribution channels can be of three types: direct, indirect and mixed.

1. Direct channels are associated with the movement of goods and services without the participation of intermediary organizations. They are most often established between manufacturers and consumers, who themselves control their marketing program and have limited target markets. In this case, trading margins and commissions for trading companies and intermediaries are excluded.

2. Indirect channels are associated with the movement of goods and services first from the manufacturer to the unfamiliar intermediary participant, and then from it to the consumer. Such channels usually attract enterprises and firms that, in order to increase their markets and sales volumes, agree to abandon many sales functions and expenses and, accordingly, from a certain share of sales control, and also are ready to weaken contacts with consumers.

3. Mixed channels combine the features of the first two channels of commodity circulation. Thus, enterprises of the machine building complex do not take advantage of direct contacts with suppliers, they sell products through a system of intermediaries. There are other state and commercial intermediary organizations and enterprises that guarantee a much larger set of supply and marketing services.

Distribution channel level is any intermediary that performs some kind of work to promote the goods and the nature of ownership of it to the final buyer. One of the determining factors in the choice of distribution channels is the number of intermediaries involved in the distribution of products (the length of the channel).

The length of the channel is determined by the number of intermediate levels it contains.

1. A zero-level channel consists of a producer selling the product directly to consumers.

2. A single-level channel includes one intermediary in the markets of industrial goods. This intermediary is usually a sales agent or broker.

3. A two-level channel consists of two intermediaries. In industrial markets, such intermediaries can be industrial distributors (supply and distribution organizations) and dealers.

4. The three-level channel includes three intermediaries. For example, in the industry between wholesale and retail traders usually are small wholesalers who buy goods from large and transfer them in small lots to retail trade.

The possible scheme of the distribution channels is shown in Fig. 7.6.

As can be seen from the figure, the distribution channels of goods can be direct (L = 0), indirect (L = 1, L = 2 , L = 3) and mixed. Comparative characteristics of the distribution channels are presented in Table. 7.4.

To create interest in the product, the distribution channel members provide feedback to both consumers and product manufacturers, which allows them to analyze the product and find out the buyer's attitude to it.

Thus, in addition to the physical distribution of products, distribution channels organize information, financial flows, storage and transportation. The distribution strategy depends to a large extent on the type of product, market and competitive situation on the market.

Distribution scheme for goods distribution channels

Fig. 7.6. Distribution scheme of goods distribution channels

Table 7.4

Comparative characteristics of distribution channels

Channels of Commodity Delivery/Characteristics








Sales volume





Contact the manufacturers

Very close










Price policy

Very flexible, quickly takes into account the market situation

Flexible, quickly takes into account changes in the market

Insufficiently flexible, requires negotiation of price changes with manufacturers

Generally flexible, satisfies both the consumer and the manufacturer

Knowledge of the subject of sale






Narrow, in a place of concentration of consumers

Wide, all around the market

Narrow, but multiple agents cover the entire market

The most complete

Ownership of products in the sales process


The mediator

The mediator


Product Maintenance Options





Rate of return





Quality reporting





When choosing a strategy for the distribution of goods, an enterprise must take into account the quality of customer service, in particular, the time of placing orders, the reliability of supplies, the choice of communications between the buyer and the seller, when creating the necessary conditions for buyers.

Varieties of the distribution strategy - strategy of attraction and push strategy. When implementing the strategy of attraction, the producer of the product creates selective demand and consumer preferences through advertising, promotion, organization of various services that They win the attention of the buyer or trade intermediaries who come into cooperation with the manufacturers of the products. The push strategy is applied when the firm has limited resources. In this case, the manufacturer of the product transfers part of his funds to the intermediary or sells it with the provision of various kinds of trade discounts to the price of the goods.

The third line of activity of intermediary companies is the price strategy , one of the most effective tools when organizing a business in selling products by intermediary organizations.

The price strategy depends on the quantity of the goods, the channel of its distribution, the participation of the intermediary in the distribution process, the terms of delivery, the origin of the goods, the packaging. The considered product strategy and distribution strategy also have an impact on price determination.

The main objectives of the price strategy are to maximize sales and gain market share, differentiate the quality of products or services and maximize profits. The price is seen as an indicator of product quality and its prestige. With the increase in prices, demand for products decreases and vice versa - its growth causes a sharp decline in sales.

Price elasticity is calculated as the ratio of the percentage change in the volume of demand to the percentage change in the price of goods

Э = ​​С/Ц,

where E is the price elasticity; C - percentage change in the volume of demand; C - percentage change in the price of the goods.

With elastic demand, it is necessary to find ways to reduce the price of goods, with inelastic demand - to analyze the possibility of reducing prices. With a low cost of production, you can reduce the price of goods, which increases sales and, accordingly, the amount of profit. Therefore, it is necessary to track prices and costs of production from competitors, i.e. win a competitive position for this product. It is also necessary to monitor the state of state regulation of prices.

Different price strategies should be distinguished depending on the goods (new or existing).

The strategy of "skimming cream" involves first selling the product at a very high price to representatives of the social stratum that does not care about the financial collapse, then the price gradually decreases to the level of the middle class, and then to the level mass consumption. As a rule, this strategy is used for goods of market novelty.

The policy "penetration policy" assumes that the firm enters the market with the product at relatively low prices in order to capture a larger share of the market in a relatively short time. It is typical for consumer goods and industrial-technological products of simple technology. After penetrating the market, the price rises to a normal level.

The strategy "wipe out policy" is used due to the application of extremely low prices, which practically exclude the possibility of the appearance of similar products of other sellers.

The chain leader strategy uses the pricing mechanism of the lead firm.

The "differentiated prices" strategy is effective at a high degree of demand, as well as when differentiated prices are perceived by buyers. It allows you to stimulate or restrain the sale of various goods in different parts of the market at different prices.

The fourth direction of the marketing strategy is the promotion strategy , i.e. activities carried out in order to maintain communications with the target market and disseminate information about the manufacturer, the volume of its sales.

Communication means:

• advertising - any paid form of non-personal representation of ideas, goods or services by a particular customer (advertising posters, advertisements: headlines, advertising in the Internet);

• publicity - any form of product presentation unpaid to the media (for example, articles in journals);

• sales promotion (the integrated sales promotion system is called "sales promotion" (from English sales promotion);

• propaganda;

• public relations (PR) - a system of public relations, whose goal is to improve the relationship between the organization and the public.

Sources of these communications can be both physical and legal entities that establish business contacts with consumers of products. Depending on the goals set, different types of communications are used to promote goods. In particular, since the market for industrial goods is significantly different from the food market, marketing communications require different approaches to developing a strategy for promoting goods to the market. Thus, the strategy for promoting new products is associated with the formation of demand for them, so the marketing strategy of promotion involves informing prospective buyers about new products, studying their needs, motivations to buy new products and maintain relations with them after sale.

The effectiveness of the strategy for the promotion of goods depends on the integrated use of communication tools and the rational choice of methods for their implementation.

In addition to these marketing strategies, marketing strategies are being developed in the organization of wholesale brokerage operations. They are created in the case of expanding sales in the old market, entering new ones, when designing new sales channels, for example, when the old sales system has ceased to be effective.

Implementing marketing strategies in sales activities requires a long time, significant financial costs, since, as a rule, investment in sales is needed.

Thus, wholesalers are constantly looking for new ways to meet the needs of both target customers and suppliers. They realize that ultimately increasing the productivity and effectiveness of all marketing tools is the only way to survive in modern conditions. However, the increasing costs, on the one hand, and the desire of industrial consumers and retail traders to receive a higher level of service, on the other, may reduce the profits of wholesalers. Those wholesalers who are not able to find effective ways to meet the needs of consumers will soon be out of the picture. And, finally, faced with the problem of reducing the growth of wholesale trade in local markets, many large wholesalers have now entered the world market, providing new opportunities for the development of wholesale trade around the world.

Many large wholesale companies in the United States market can fulfill market research to satisfy their own needs or commissioned by clients, which cover the three most important areas:

1) research of professional subjects of the sales market: competitors, retail network, other buyers of goods (these include, for example, the restaurant catering system, cafe, small wholesalers, working in wholesale and retail markets, etc.)

2) research of consumers, the population, in order to obtain from them information about goods in demand, and about the level of dissatisfaction with different brands;

3) market research of suppliers to solve their own problems related to procurement.

Other research can be carried out based on the company's strategic goals.

The organization of marketing research depends on the availability of marketers in their company and their qualifications. If they are absent, third-party analysts may be involved or a ready-made report prepared by the marketing firm on the basis of previous studies may be purchased. At the initiative of the supplier-manufacturer, it is possible to conduct various experimental studies on the evaluation of the consumer qualities of the product.

Market segmentation is an obligatory function of wholesale company marketing. For example, it is necessary in order to select target segments of professional buyers and to know the purchasing preferences of different segments of the population and their reaction to the supplied goods.

The professional sales market is segmented by such criteria as the volume of purchases, the breadth of the assortment, business reputation, solvency, price policy, etc.

If the consumer is a population, then various systems of indicators are applied, choosing from them those that most characterize the consumer segment (social, demographic, economic, behavioral, etc.).

Marketing of purchases serves to gain competitive advantages already at the stage of working with suppliers through the acquisition of goods that can meet the needs of end customers. In this case, the following tasks are solved:

• Buy goods that are in demand by the consumer;

• the procurement process should give the wholesaler an economic benefit by obtaining discounts, deferred payment;

• In case of substandard goods, the wholesaler must be able to replace it.

The manufacturer makes purchases of raw materials, parts of component parts also taking into account the required quality of manufactured goods. The procurement process consists of a number of consecutive steps:

1) determination of requirements in a particular product, a certain brand with the establishment of its quantity;

2) determining the needs in the range, which is desirable to buy from one supplier;

3) the definition of the criteria that constitute the initial basis when evaluating suppliers and negotiating with them (economic, marketing, technical, logistics requirements);

4) search and analysis of suppliers by market research methods;

5) selection of suppliers and organization of negotiations with them;

6) placement of trial orders;

7) evaluation of results;

8) conclusion of long-term contractual agreements.

You can formulate the basic requirements for suppliers:

• popularity (brand awareness);

• Reliability;

• Availability;

• interest in teamwork;

• Understanding the role of marketing in promoting their products;

• the minimum delivery time;

• assuming a share of the risk, for example, related to transportation.

When selecting suppliers, the wholesale company decides whether to choose one supplier (the principle of concentration of orders) or select several (the principle of order dispersion). The advantage of concentrating orders from one supplier allows you to get great discounts at the expense of a larger order size. This is also facilitated by close cooperation, including the implementation of joint projects for the production of new products. A wholesale company can provide information about new demand trends, products coming to the market from other producers.

However, working with one supplier increases the risk of the wholesaler and limits its ability to quickly adapt to the requirements of the retail network. To reduce it, the wholesale company works simultaneously with several suppliers. If suppliers are interested in cooperating with a wholesaler, then it can be used to obtain additional benefits by seeking concessions from them.

Marketing-logistics of the wholesale company is to develop such a transport-warehouse scheme, which would take into account the requirements of marketing purchases and sales marketing. Like other enterprise structures focused on the marketing approach in their work, logistics services should take into account the specifics of the behavior and requirements of retail trade enterprises that they impose on their wholesalers. This, above all, the size of the lot of goods and the speed of delivery.

Often such requirements lead to the wholesale company being forced to choose the storehouses closest to the stores. At the same time, own purchases of large quantities of goods from producers produced by a wholesaler make it solve the following problem: should it have a central distribution warehouse or, bypassing it, deliver goods to regional warehouses.

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