Difference between marketing and sales. Retail and wholesale trade

Wholesale- any activity involving the sale of goods or services to those who purchase them for the purpose of resale or professional use. A wholesaler is a company that purchases significant quantities of goods from various manufacturers and organizes their movement into retail trade or direct sale to the consumer. Wholesalers are different from retailers. Firstly, the wholesaler pays less attention stimulation, atmosphere and location of your retail establishment, because it deals primarily with professional clients rather than end consumers. Secondly, wholesale transactions are larger in volume than retail transactions, and the trading area of ​​a wholesaler is usually larger than that of a retailer. Third, when it comes to law and taxes, the government approaches wholesalers and retailers from different perspectives.

It is beneficial for manufacturing firms to use the services of wholesalers, because even if they have sufficient capital, it is preferable for them to direct funds to the development of production rather than to organizing wholesale trade. And in turn, it is beneficial for wholesalers to maintain good relations with all companies, if only on the grounds that this provides them with the most important weapon for wholesale efficiency - a wide range, a wide selection of goods. The fundamental difference between a wholesaler and a company's sales service is that he receives income and profit from the sale of goods from any company, and not just his own. But the tastes and preferences of consumers are different. Accordingly, the greater the selection of goods a wholesaler has, the higher his income and profit.

Wholesalers are under intense pressure to offer a full range and maintain sufficient inventory for immediate delivery. But this could have a negative impact on profits. Today, wholesalers select only the most profitable product groups for themselves. Preventing “internal” competition, wholesalers prefer, on the one hand, to refuse product advertising, and on the other hand, they retain the traditional network of traveling salesmen who maintain personal contacts with the company’s clientele.

Almost all wholesale transactions use credit. For example, company A has the same good product, like company B. Both have a good reputation, high readiness to service the product, and equally well-established sales connections. Who will the wholesaler choose when all odds are equal? Of course, to the company that will offer him a more reasonable price for a similar product. Well, if everything is the same here, then whoever gives the buyer the best credit terms will win. The opposite situation, of course, is also not uncommon in business practice. Start-up but promising industrial firms often use credit support from large trading companies.

Wholesale trading companies usually purchase goods in large quantities from manufacturers and then resell them industrial enterprises or in the service sector (restaurants, shops). Thus, the wholesaler acts as an intermediary. Quite often the question arises: why is this intermediate link in the circulation of goods needed?

A wholesaler, on the one hand, helps manufacturers regulate the sale of products, speeding up payment for the cost of goods, and on the other hand, provides an important service to retailers, relieving them of the difficulties associated with creating inventory; from the need to make significant investments and knowledge related to product quality, supplier selection and market functioning at home and abroad.

Warehousing of goods is one of the characteristic aspects of a wholesaler's activity. This aspect of activity finds its material embodiment in the form of a warehouse, a room in which goods arriving from enterprises are placed, divided into batches, packaged and only then delivered to consumers. The wholesaler regulates the supply of goods, synchronizing production and consumption material goods. In addition, he assumes financial obligations associated with the immobilization of funds invested in the creation of inventory.

A wholesaler supplies retailers and small sellers with goods in a form that meets their needs. This means that he must split goods into batches convenient for customers, form an assortment and ensure delivery of products at a convenient time. Goods are released from the warehouse in fairly small batches in accordance with the possibilities of sales to consumers in a very short time, which makes it easier financial position clients. The retailer requests a very diverse set of products, which may number several thousand items.

The activity of a wholesaler makes the transportation of products easier and less burdensome. The number of shipments of goods and related operations is reduced when goods pass through a wholesale warehouse

The need for the services of wholesalers in the non-food sector arises due to the “dispersal” of demand from retailers who need small quantities of a variety of goods. Hence, the main functions of the wholesaler are warehousing and forming an assortment (haberdashery, mosquito, hardware, pharmacy and other goods)

Therefore, it is especially important to ensure the exchange of reliable information between manufacturers and retailers, creating better conditions for the operation of retailers and other industries that are clients of wholesalers.

An intermediary in the field of wholesale trade of industrial and technical products can perform the following functions.

1. Sales and promotion of goods

Sales promotion, as a section of marketing, is carried out in various forms. So, for example, we can talk about a targeted advertising campaign, conducting various events, promoting quality characteristics products, their advantages compared to other similar types of materials or products.

2. Purchasing and creating a product range for the consumer enterprise

At the buyer's request, the intermediary can:

• - perform the functions of studying market conditions, quoting market prices for the necessary products;
• - identify rational options procurement in terms of the amount of transportation and procurement costs, the reliability of the supplier and the quality of the required resources.

In addition, intermediary services may include:

• - analysis of the assortment of required material resources;
• - compiling a list of potential materials or substitute products in case of shortages for individual items of assortment needs.

Here you can also obtain information about new types of material resources and their sources.

3. Splitting large quantities of goods into smaller ones

A commercial intermediary can create inventories in its warehouses and, thus, purchasing goods in large quantities, then sell them in quantities convenient for the buyer. In this case, the products sold can be brought to high degree technological readiness for use in industrial consumption.

4. Warehousing

A commercial intermediary maintains inventory in specialized warehouses, ensuring their safety. Therefore, the buyer can transfer the material resources received to him for safekeeping or rent the warehouse space necessary for storing the resources.

• 5. Transportation (delivery) of goods from mainline transport
• 6. Financial participation in purchase and sale settlements, responsible storage of consignments and acceptance of the risk of the owner of the goods
• 7. Providing commercial information and consulting

Intermediary enterprises trading in the wholesale trade of goods for industrial and technical purposes, depending on the nature of the functions performed, are usually divided into several groups:

• - independent wholesale intermediaries (distributors);
• - organizations of agents and brokers;
• - wholesale branches of industrial enterprises.

Trade has always been the most important product of the life of any society. Even in ancient times, those countries that promoted the development of sales on their territory not only strengthened their power, but also additionally created the general wealth of the entire population without exception. The first trade involved the exchange of surplus products, at this point there were no standards, so everything simply happened in the same quantity. Gradually, the main idea of ​​such relationships became the individual needs of a person. IN modern world retail and wholesale trade appeared, which focused not only on different numbers of buyers, but also on specific features

Features and functions of wholesale trade

This type of relationship involves selling in large quantities. Such volumes are purchased for subsequent resale or professional use in business. In other words, wholesalers are intermediaries between manufacturers and retailers. At their expense, the efficiency of the overall trading process is ensured. Wholesale trade is much more productive due to the scale of operations and more business contacts. Goods purchased from such enterprises are used for further resale or for business needs.

Functions:

• sales and its promotion;
• procurement and creation of product range;
• splitting large quantities of goods into small ones;
• warehousing;
• full or partial transportation;
• risk taking;
• providing the necessary information about the market;
• management and consulting services.

Factors influencing the development of wholesale trade:

Differences

Retail and wholesale trade have some features:

Classifier of companies

Wholesale trade enterprises are of the following types:

1. Wholesalers-merchants are independent enterprises that always have every right own the goods being sold. They can provide both a full service cycle, which includes storage, installment payment and delivery, and a limited one, requiring immediate payment for the goods and not providing for delivery.
2. Brokers and agents. Such firms are, in a sense, intermediaries in the buying and selling process, who receive a certain amount of money for their services and do not bear any responsibility for the goods.
3. Wholesale branches and offices of manufacturers belong to one of the main types of trade; they work directly with the buyer and are official representatives of a particular manufacturer.
4. Various specialized wholesalers. Available in some sectors of the economy, they collect goods from small traders in large quantities and sell them to large enterprises.

Wholesale trade accounting

The choice of account depends on the type of activity of the company. The Chart of Accounts uses the following: 41 - “Goods” and 45 - “Goods shipped”. Account 41 is needed to control data on the availability and movement of inventory items, regardless of the method of their acquisition. Accounting takes place according to the costs of the enterprise for its acquisition without taxes. Account 45 is used to account for the movement of shipped products and sales revenue. Additionally, finished products that are given on a commission basis are taken into account. The cost of goods is calculated from the actual production cost and the cost of shipping products.

There are the following types of wholesale trade:

• sales from warehouse;
• sale in transit.

According to the law, revenue for goods sold is displayed in accounting at the time of shipment. Simply put, immediately after the actual shipment, the accountant reflects this transaction in accounting, even if payment has not yet been processed. Revenue is considered to be received for the goods cash, in accounting it looks like in the following way- Dt 62 / Kt 90.1 “Revenue”. The next operation is to reflect the tax.

The most necessary accounting entries

The following are used for accounting:

• accounting of received goods - D-t 41 /K-t 60 /;
• VAT reflection - D-t 19.3 / K-t 60;
• reduction of debt to the supplier - D-t 60 / K-t 50, 51;
• advance payment to the supplier - Dt 60 / Kt 50, 51.

The different types of wholesale trade do not affect the fundamentals of accounting.

Retail

This type of relationship represents the sale of goods to the end consumer for their own needs without further resale. An indispensable attribute are cash machine and a check. A retail store must meet certain characteristics:

• area of ​​retail premises;
• number of product names;
• service level;
• product placement technologies.

The main basis of this trade is the margin - the difference between the purchase price and the selling price; it is the margin that is the main income. The main purpose of retail trade is to provide maximum convenience when offering a product to a consumer, regardless of personal capabilities. There are the following types of retail companies:

• by breadth of assortment;
• By ;
• according to the nature of the service.

The above types of trade can be combined and create a new direction, such as wholesale retail. It is a mixed form of relationship, which is usually carried out through trading houses or distributors. With this type of relationship, wholesale transactions of small and medium size occur, they are carried out from the warehouse of the retail outlet.

Retail businesses

The main factors for are:

• product range;
• price level;
• concentration of the trading network;
• type of ownership;
• level of services;
• service feature.

Most common businesses

In retail trade, each enterprise belongs to a specific group:

1. Specialized stores - carry out trade in a specific group of goods. Their main task is to satisfy the needs of specific target markets. There are no other products on their shelves.
2. Department stores - large enterprises who sell wide range various goods. Here, each group is distributed into a separate department, which is a specialized store with a full range of products. In such places there is no self-service; the presence of a seller and a counter is required.
3. Supermarkets are engaged in satisfying the needs of potential buyers. The peculiarity is that there is self-service, low prices and a large volume of sales.
4. Supermarkets - the presence of a large retail area and an assortment of various goods, minimum costs labor of sales personnel. It has both self-service and full service departments. Payment occurs after all purchases are made when leaving the store.
5. Hypermarkets - trade area It has gigantic size, the product range is represented by a huge number of different product names. The main principles are: low prices, extended opening hours, large parking lot, self-service. In such stores you can not only make long-term food purchases, but also purchase any goods that belong to other groups.
6. Convenience stores - small size, they work with certain products of a small range. They are located close to customers and provide only popular goods that are sold over the counter. These are small shops located either in residential buildings or close to them.

Retail and wholesale trade have their own special sales points that meet certain standards.

Non-traditional forms of sales

Previously, purchases could only be made in certain places. To do this, you had to visit the store, select a product and immediately pay money for it. This form has always had disadvantages: a lot of time, lack of the right product, and others. Today, other forms of trade have emerged that are great for goods with low turnover:

1. Order by phone - your orders are collected over the phone, after which you receive delivery to the specified address at a convenient time.
2. Vending machines - provide 24-hour sales with full self-service.
3. Discount ordering service - facilitating certain groups of people who make purchases at discounts.
4. Peddling is when sellers come to your home.

Retail and wholesale trade have many differences, but together they create the economic situation of any city and even state.

Wholesale trade is the purchase and sale of goods. Workers in this activity provide communication between producers and consumers. Sometimes a whole organization becomes a client of a wholesale enterprise. She is essentially both a buyer and a consumer. But most often there are one or more intermediate links. Until a product makes its way from the wholesaler to the consumer, it usually passes through 2-3 intermediaries (retailers).

Wholesale marketing includes any type of activity related to the sale of services and products to people who will resell them or use them for personal or business purposes.

What is wholesale trade?

Wholesale trade is one of the types of economic activity that helps to establish relationships between suppliers and buyers. During their interaction, each has its own benefit. Buyers receive affordable goods, sellers receive profit.

At the moment, wholesale trade is developing very rapidly, suppliers and the scope of their activities are expanding day by day. This is due to constant profit, good income. In addition, the emergence of new suppliers is also beneficial for buyers, since the range and competition between them is growing. This invariably leads to lower production costs and, as a consequence, lower prices at final retail outlets.

Wholesale distribution does not have a fixed quantity of goods supplied. An agreement is concluded between the supplier and the buyer, which specifies the amount and number of products. The only thing we can say for sure is that trade is carried out in batches. Typically, delivery is focused on subsequent resale to the final buyer.

Wholesalers and their differences from retailers

A wholesaler is a company or individual that carries out related activities. It provides its services not only to retail organizations, but also to manufacturers and their sales offices.

A wholesale trade center and the people involved in this activity differ from retail centers in several ways:

• Minimizing advertising. A wholesaler deals with professional clients who independently collect information about the product. Only end consumers are interested in advertising.
• Maximum transaction size, as well as a large trading area. Compared to retailers, these parameters are several tens (or even hundreds) times higher.
• Different positions regarding legal norms and taxation by the state.

Sometimes manufacturers bypass wholesalers and market the goods themselves. But this is aimed mainly at small businesses. Large manufacturers prefer not to waste time searching for customers.

Wholesale trade and its essence

The wholesale trade center initially interacts with manufacturers. He goes to the sales office, where he “picks up” a certain amount of products (sometimes the entire product). Then it goes to retailers, and we distribute the shipment between them. Again, sometimes all the goods are picked up by one representative or company. After this, the products are supplied directly to personal consumption.

The most important task of this type economic activity is the regulation of supply and demand. Trade centers, in fact, can successfully cope with it, since they are the so-called intermediate link. They hold back some of the goods, then the demand for them will increase. Also, to increase supply, the products are supplied to the market in abundance.

It should be noted that wholesale trade activities are significantly limited. She can only work with the data that is given to her. It cannot influence the sphere of production or final sales. And it certainly doesn't have any direct impact on consumers.

Wholesale functions

Wholesale trade enterprises are sources of communication between individual regions of the country, and also in a global sense they contribute to interaction between states, both neighboring and distant. This is their main function. But there are also minor ones:

• Stimulation manufacturing enterprises regarding the creation of new products, the modernization of old models and the widespread introduction of modern technologies.
• Participation in creating a range of goods and services, monitoring market conditions.
• Assumption of commercial risk. Some products may become unsaleable. Therefore, there will be no demand for them among retailers. It will not be possible to return the invested funds.
• Organization of warehouse operations, providing all conditions for storing certain products.

Finally, it should be pointed out that wholesale trade in products is intended for another function. She delivers goods to retail chains. Otherwise, they will not see the end consumer.

Retail and consumer service levels

Wholesale and retail trade are very similar. Both of these concepts imply that sales activities will be carried out. But retail sales are the sale of products to end consumers who will use them for personal purposes that are far from commercial.

There are several levels of service in the activity under consideration:

1. Self-service. It implies that a person will independently choose products and their names.
2. Free selection of products. Indicates that the consumer will be offered many goods of the same purpose, among them he will choose those that he likes best.
3. Limited service.
4. Full service (like in a restaurant).

There are a huge number of enterprises engaged in retail trade. These include various shops, catering establishments and others.

It has long been known that competition is the engine of progress. Nowadays, numerous competition in the product sales market forces sellers to resort to in various ways attracting customers in order to improve sales efficiency and increase product sales.

What is the difference between sales and distribution? There are several points of view, according to one of them, sales and sales are completely different concepts. Selling occurs when you try to sell a product using various methods and marketing tools. Even when the client didn’t even think about buying, your task is to interest him and convince him of the need for this particular purchase. Sales occur when customers find your products on their own without you having to resort to oratory or effort. special forces to attract buyers. According to another point of view, sales are a type of marketing. But in any case, the goal is the same - to effectively increase sales of goods.

One of effective ways increasing sales is establishing contacts with customers. The best way to establish contacts with potential clients is through personal meetings. When you see a person, look him in the eyes and smile, you put the client in a positive mood and thereby create a friendly atmosphere for communication and cooperation. In turn, you have a greater chance of influencing the client and getting him to agree to the deal.

No less effective are presentations that are aimed at introducing a wide range of potential buyers to the beneficial properties of the product being offered. This marketing tool will help you present beneficial features products, their purpose and features of use, and also contributes to the establishment personal contacts and further long-term cooperation. To win over the audience, it is important not only to prepare an informative report and present it in an interesting way, but also to look good accordingly.

Telephone conversations have always been and remain a relevant means for promoting products on the sales market. Of course, it is quite difficult to get a client over the phone, since this is blind communication. Therefore, the most valued are specialists who have the skill to use so-called cold calls, the end result of which is to achieve a personal meeting with the client and subsequently persuade him to buy. They received this name because, having called for the first time and offered cooperation, the manager usually encounters a number of obstacles, including cold communication and reluctance to continue the conversation with stranger. How to convince a person who begins to object to you and deny the need for a purchase? The task is not easy. First of all, you need to fully listen to the client and agree with him, this way you can win the person over and start a conversation, and then offer him a good deal and influence a positive decision-making. Understanding the psychology of sales will help persuade a person to mutually beneficial cooperation. A buyer is, first of all, a person who has his own desires and goals, and the motives of his behavior are explained by the desire to achieve these goals and satisfy urgent needs. Knowledge of personality psychology, ability to identify needs and present them correctly useful information information about a product always promises a positive conclusion to the transaction.

Every manager understands that sales performance depends on how the sales department is structured, in other words, on the team of managers who must have the appropriate personal qualities and professional skills. These include activity, communication skills, initiative, flexibility, perseverance, as well as the ability to beautifully present information about a product, find and attract customers, knowledge of the basics of marketing, psychology, etc. Moreover, it is of no small importance to staff the department with specialists, so that there are not many or few of them, but a sufficient number according to the approved staff, depending on the size of the enterprise.

Product distribution- a systematic process of bringing goods from enterprises producing goods to consumers.

Product distribution- this is the activity of planning, implementing and monitoring the organization of contacts between sellers and buyers, for physical movement materials and finished products from their places of origin to their places of use.

Goods distribution is a complex organizational, economic and material (technological) process, since at each stage numerous means and tools are used (trade buildings, structures, trade and technological equipment, vehicles etc.), and many people are involved in its implementation. The basis of the organizational and economic side is commercial activity carried out by the units participating in it - wholesale and retail trade enterprises and includes various operations and processes.

There are 2 forms of product distribution:

1) Transit - goods enter the trading network directly from trading enterprises;

2) Warehouse - through one or more intermediary links.

A distribution channel is a set of firms or individuals who take over or help sell or transfer ownership of a product or service to someone on its way from producer to consumer.

Concept "sales" in the literature it is used in two aspects: in a broad sense - as a holistic process of bringing a product from the manufacturer to the final consumer (transportation, warehousing, storage, processing, promotion to wholesale and retail chains, pre-sale preparation and actual sale of the product), and in a narrow sense - like the actual sale.

In other words, sales is a system of all activities that are carried out after products leave the enterprise gates. How do the concepts of “marketing” and “selling” relate? As follows from the definition, sales is a whole system of processes, and sales completes the process of marketing a product. Selling is a personal communication between a seller and a buyer, aimed at making a profit from sales and requiring knowledge, skills and a certain level of trading competence.

The product distribution system covers a significant area of ​​the enterprise’s economic activity, starting from the warehouse finished products to the point of sale of manufactured goods.

Traditional distribution system(Fig. 1) consists of independent manufacturer, one or more wholesalers and one or more retailers and the consumer. All participants in such a distribution system find each other on the free market, do not bind themselves to long-term obligations, are independent and not controlled by other participants in market relations, pursue the goal of maximizing profits, primarily in their section of the distribution system, and are not interested in issues of optimizing profits in the distribution system generally.

Rice. 1. Traditional sales system:

R - market, free market relations.

Let's consider what are the qualitative differences between existing marketing distribution systems, how these systems cooperate, interact, conflict, and compete with each other.

So-called conventional (symbiotic) The marketing channel (MCC) operates on the principle of symbiosis and includes independent manufacturers, wholesalers (or sellers) and retailers. Each of them goes about their own business, trying to maximize their profits, even if this does not maximize the profits of the system as a whole. None of the partners in the KMC has the ability to have complete or even significant control over the rest of its members. Their interaction is essentially fragmented, the zones of agreement are limited, figuratively speaking, by “arm’s length”, and the agreements relate mainly to sales volumes, otherwise their behavior is autonomous.

Vertical Marketing System (VMS)- a relatively new form of distribution channels, operates as a single system, since it includes a manufacturer, one or more wholesalers and one or more retailers pursuing common goals and interests; one of the participants plays a leading role. Such a sales system and the organization of relationships between a manufacturing enterprise and sales entities is possible and effective on the basis of the high reputation of its brand, its high authority as a business partner and evidence of the effectiveness of its coordinating activities as a production and commercial entity of the system.

Vertical systems can be of three types (Fig. 2):

- corporate(within a single organizational structure one company, united by ownership status);

- negotiable(within the framework of contractual relations and coordinating programs), which in turn are divided into voluntary associations (chains) of retailers under the auspices of wholesalers; retailer cooperatives; franchised - those who have received the right to use on commercial terms trademark firms under the obligation to comply with technology and principles of production or provision of services; organizations of privilege holders (a system of retail privilege holders under the auspices of the manufacturer, a system of wholesalers - privilege holders under the auspices of the manufacturer, a system of retail privilege holders under the auspices service company);

indirect influence, which are formed under the influence of the size and financial power of one of the participants and its authority in the market.

Product distribution is carried out through distribution channels (product movement Product distribution (distribution) channel They call the path, sometimes quite complex, from the manufacturer to its consumers. Along this route, the goods may pass through a number of intermediaries - firms or individuals who transfer the goods from hand to hand. These intermediaries, as well as manufacturers, sellers and buyers of goods are called channel members.

The set of stages, actions and methods for identifying, selecting and attracting consumers, identifying rational ways and means of supplying goods in accordance with the terms of the contract, justifying methods and types of storage of these goods is distribution process.

Sales channels are:

Direct (no intermediaries).

Indirect (with intermediaries): one-level, two-level, three-level, four-level.

Horizontal (based on competition and individual achievement of profit).

Vertical (based on corporate cooperation and corporate profit).

Channel level - This is any intermediary who performs one or another function in bringing the product closer to the consumer. Since both producers and consumers perform certain work, they are also part of any channel.

Channel length (channel length) - this is the number of intermediate levels (intermediaries).

Channel width - this is the number of intermediaries at a particular stage of product distribution.

With a narrow distribution channel, the enterprise uses one or a few intermediaries, with a wide one - a large number of intermediaries. Depending on the number of intermediaries, there are four types of traditional distribution channels: zero, one-level, two-level and three-level.

Channel zero (direct marketing channel) consists of a producer and a consumer, i.e. goods distribution is carried out without intermediaries. It is advisable to use this channel when the market share is small. Direct marketing is carried out through company stores, mail order, peddling and other methods.

Single level channel: manufacturer? retail? consumer. Includes one intermediary. On consumer markets This is usually a retailer, and in markets for industrial goods - a sales agent or broker.

Two-level channel: manufacturer? wholesale? retail? consumer. Includes two intermediaries. In consumer markets, such intermediaries are wholesalers and retailers; in markets for industrial goods - an industrial distributor and dealer.

Three-level channel: manufacturer? wholesale? chalk co-wholesale trade? retail? consumer. Includes three intermediaries. Thus, in consumer markets, in addition to wholesalers and retailers, small wholesalers take part in distribution, who buy goods from large wholesalers and transfer them in small quantities to retail. In markets for industrial goods, the functions of small wholesalers are performed by agents.

In addition to the above, enterprises can use several distribution channels if they enter different market segments or expand their product sales activities. This type of distribution system is called mixed.

Existing distribution channels involve the use of three main distribution methods:

1. Direct , which consists in the fact that the manufacturer sells its products through the sales department or through sales branches directly to the consumer. The direct marketing method allows the manufacturer to maintain contact with the consumer and thereby control the sale of its products. In this case, trade margins and commissions for traders and intermediaries are excluded;

2. Indirect (through an intermediary). The trade distribution method involves the manufacturer selling his products to wholesale or retail trade. Incorporation of trade is beneficial when the manufacturer does not have a dominant position in the market, when the product needs to be introduced into the full range of the trade, or when the trader has extensive experience in the trade and has influence in the market;

3. Combined (mixed).

If a company supplies goods directly to retailers or the end consumer, then trade margins disappear, but the company’s costs increase due to appropriation trading functions(storage, transportation, sale). In this case, with equal market relations, direct sales are profitable if the saved trade margins are higher than the additional distribution costs.

With indirect marketing, the benefits are very difficult to determine because the market channel is virtually uncontrollable, strategy creation and change is conservative and time-consuming, availability and presence of the manufacturer cannot be guaranteed, and there is no direct contact with the clientele.

The choice of specific distribution partners also largely depends on which distribution method is preferred by the manufacturer:

1. Intensive (when the company’s product should be almost everywhere),

2. Selective (selective), based on the criteria of territorial, group requirements, characteristics;

3. Exceptional (exclusive), if these requirements are extremely individualized or the cost of the product is very high.

With intensive sales, the manufacturing company has to deal with all possible sales intermediaries. As a rule, in this case, intermediaries are not selected based on quality. However, large manufacturers They can afford not to deal with small traders and not to have their goods delivered to them, trusting that large intermediaries will already provide them with the required share of sales. But even in this case, it is important that these intermediaries are geographically located at an optimal distance from each other.

In certain cases, a manufacturing company prefers to have a single, exclusive sales intermediary who exclusively sells the goods of this company. For such an advantage on the part of the merchant, as a rule, additional services are required, compliance with certain conditions, for example, an established sales volume, etc.

In Fig. The most noticeable features of the considered competitive concepts in the field of sales are presented.

Rice. Characteristics of competitive concepts in the distribution system

Form of product distribution- This is an organizational technique that is a variety of ways to promote goods from the manufacturer to the consumer.

There are 2 forms:

- transit when goods are delivered to a retail distribution network directly from manufacturing enterprises, bypassing the warehouses of intermediaries;

- warehouse- through one or more intermediary warehouse links.

Types of sales activities:

1. Wholesale- sale of large quantities of goods for subsequent professional use or resale.

2. Retail- sales of goods individually or in small, non-standard, scattered batches.

Wholesale and retail trade are types of sales of goods that affect the relationship of the manufacturer with suppliers, intermediaries and consumers in the system of distribution and promotion of goods (services).

Allocation decision criteria

The following criteria can be used as decision-making criteria when implementing marketing policy measures: the amount of turnover; market share; distribution expenses; the degree of branching of the distribution network, which is characterized by the level of preservation of the product during its distribution from the manufacturer to the final consumer; image of sales channels; the level of cooperation between subjects in the distribution system, ensuring a reduction in conflict and commercial risk; flexibility and survivability of the sales network.

The criteria for the effectiveness of distribution channels are:

1. Controllability - the ability to implement a strong-willed decision;

2. Providing guarantees;

3. Quality of customer service;

4. Consultations;

5. Conflict resolution;

6. Flexibility - the ability to quickly create and change a channel;

7. Availability and good location of the product;

8. Readiness for delivery and delivery time;

9. Customer proximity and distribution reliability.

Restrictions for the formation of distribution channels:

Current legislation (for example, the sale of drugs only through pharmacies);

Restrictions on product quality (liability, shelf life);

Technical (warehouse, transport and service capacities);