Appointing a Dealer


  1. The Branch Manager perceives a need for an additional dealer in an area. Need occurs if any existing dealer leaves or is removed. It could also happen when the company expands into new territory.
  2. The Branch Manager has to convince the general manager of the division about the need for anew dealer.
  3. The selection process for the dealer begins with placing advertisements in newspapers and trade magazines inviting applications. Applications for dealership are directed to the concerned branch manager.
  4. The branch manager then reviews the application forms and prepares a shortlist if necessary. The company has not laid down any concrete guidelines for shortlisting at this stage. The branch manager is allowed to exercise his discretion.
  5. The shortlisted applicants are interviewed by the branch manager along with the regional sales manager of the division. Whatever additional information is required is obtained from the applicants during the interview. The dealers are evaluated on:
    1. Prior business record
    2. The capability of maintaining and running his own showroom
    3. Financial strength
    4. Inventory: The dealer must have enough working capital for maintaining specified level of inventory. This condition is however is applied only in the case of dealers whose territories are located considerably away from a branch office. This is because there is a company owned warehouse along with every branch office and for dealers located in the same cities there is no necessity to maintain separate inventory
    5. Contacts with customers
    6. Availability of salesforce to service customer effectively. In addition, technicians also need to be present to meet the after-sales service requirements of the products
  6. The final selection decision is made after talking with the bankers of the applicant. This is done to check the veracity of information regarding financial strength and prior business experience. It is only after the company is satisfied regarding all aspects of he information, that it sends the dealer an appointment letter
  7. The appointment letter lays down several terms of the contract that have to be fulfilled by the dealer. The company expects the dealers not to sell any competitors’ products. The dealer is also expected to conduct his business only within the clearly demarcated sales territory allocated to him by the company.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Retailing & Strategic Decisions


The strategic part determines the type of business that the retailer would be in. this is governed by two considerations—financial and familiarity considerations and image related consideration:

  1. Financial and familiarity considerations: A most of the outlets are proprietary in nature, the type of business that retailer would like to undertake would be governed by the investment capacity of the person and his familiarity with the product line.
  2. Image related considerations: Retailing is just not a way of business, it is a way of expressing oneself in the society. The shop depending on where it is located and the type of products and brands it deals in, will contribute to the social standing of the shop owner.

As these decisions are taken before taking up dealership with a company, the strategic considerations are not studied. From a marketer’s point of view the managerial considerations become important as they determine (a) whether the retailer would stock and sell their brands, and (b) the effort the retailer would put in to sell the brand.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Selection of Dealers


  • The company does not advertise for new dealers. Whenever the need to appoint a new dealer for an area is felt the word is spread around. This is being used as the type of dealer who sell pumps and motors are mostly concentrated in a locality in every town or city
  • The interested dealers are asked to present before the branch manager and the group marketing manager as to how they would be able to serve the company
  • The selection is then done on the basis of following criteria:
  1. Financial Strength: The capability of the dealer to be able to hold sufficient stock as per the potential of the area, both in the present and in the future, and whether he will be able to pay the companies dues in time.
  2. Manpower: the strength of the workforce for handling sales, delivery, store handling, after sales service etc. the quality of the workforce in terms of educational qualifications, technical competency, and experience is also seen.
  3. Contacts: As the business for these types of products is done on  the basis of contacts that form a major basis for selection and include the present customers of the dealers, experience in dealing with such customers, and overall contacts in the society
  4. Floor space: Depending on the quantity of products to be stocked for the targeted sales, the floor space of the godown should be sufficient and located close to the market
  5. Location: Location and ambiance of the outlet are not important.
  • Feedback from the market is obtained through the market network and the present dealer network. The feedback is sought for things like authenticity of the claims and the reputation of the person to be appointed.
  • Appointment is given to the elected dealers after they give a security deposit. Every dealer is required to make a deposit with the company, which works out to roughly around three months of expected sales.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Communities of Practice


One of the most successful uses of the Internet has been the emergence of informal knowledge communities or a community of interest. It is an environment usually outside of conventional organizational structures, where people can converse with each other about the common problems they face in their workplace or in their professional life, a common passion for some subject or a common mission. Most communities of practice are contained within a single organization but sometimes they cross institutional boundaries.

A community of practice does not necessarily have to be transacted solely on the Internet and in fact the most successful ones almost always have a face-to-face meeting component to them. As good a tool as the Internet is, it can never replace the intimacy and fullness of communication of face-to-face meetings of individuals. The importance of the internet to a community of practice js that it provides a link beyond the times when people can physically meet and hence sustains the group. It also permits a community of practice to develop among people who are not co-located.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Tangible and Intangible Property


Tangible property has a physical existence; land, buildings, and furniture are examples. Property that has no physical existence is called intangible property; patent rights, easements, and bonds are intangible property. The distinction between tangible and intangible property is important primarily for tax and estate planning purposes. Generally, tangible property is subject to tax in the state/province in which it is located, whereas intangible property is usually taxable in the state where its owner lives.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Value-based Pricing


  • Choose four firms in a given market, locate and discuss their relative position.
  • What is the real difference between competing on price and competing on value? Explain.
  • Provide specific examples of companies adapting the following approaches in an attempt to change and improve their value pricing:
  1. Selling “less for less” – no frills.
  2. Selling “more for more.”
  3. Selling “more for same.”
  4. Selling “same for less.”
  5. Selling “more for less.”
  • How might introducing value pricing be different for services rather than goods?
  • Where among the companies does the opportunity for a competitive advantage exist, and why?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Utilities Created by Marketing


 

All of marketing’s functions are performed to move goods from products to consumers. During this process, marketing adds utility (value) to goods and services. There are five types of utilities: 1) form, 2) time, 3) place, 4) possession, and 5) information.

1)      Form utility: refers to the changing of raw materials into a finished product. Taking grains and turning them into cereal is an example of form utility. Form utility is usually considered a production function rather than a marketing function.

2)      Time utility: it helps consumers by making products available when the consumer wishes. Supermarkets that are open 24 hours a day provide time utility. Making fresh fruit available in the winter is also a form of time utility.

3)      Place utility: it makes sure that the goods and services are conveniently located where consumers want them.

4)      Possession utility: it helps make the exchange of goods between buyers and sellers easy.  Anything that helps complete the sale – delivery, installation, warranties, credit – is considered part of possession utility.

5)      Information utility: it informs buyers of the product’s existence, how to use it, the price, and other facts. Such information is provided through advertising, salespeople, and packaging.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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