2. WHO IS A MANUFACTURER
DEALER AND DISTRIBUTOR???
MANUFACTURER: Any person who is
responsible for designing and manufacturing
a product with a view to placing it on the
community market under his own name.
DISTRIBUTOR: An entity that buys products
warehouses them and resells to retailers or
direct to the customers.
DEALER: Individual or firm that buy goods
from a manufacturer or distributor for
selling them to the end users.
5. • Some retailers are critical of their franchisee
agreement. They accuse the manufacturer of
overproduction and as a consequence
overloading dealers.
• Some dealers also protest manufacturers
practicing by passing the dealers and selling the
product direct to the customers.
• Dealer dissatisfaction is caused by inequitable
distribution practices.
• Some manufacturers are prone to characterize
retailers as small incompetent trade people with
little capital and capacity inspite of the the fact
that they have grown during several years.
6. MANUFACTURE- DEALER-
DISTRIBUTOR RELATIONSHIP:
• The relationship between the brand name manufacturer
and the wholesaler and retailer is a true partnership .
• Their mutual interest is to make a fair profit in performing
their respective functions in supplying the product of
which they can proud.
• PARTNERSHIP IN RISK: It is a philosophy in which a
manufacturer risking millions of rupees in product
improvement and dealer sharing their risk by investing
their capital with the expectation of reselling it to the
market.
• When manufacturers wholesalers and retailers work
together sharing common interest problems recognizing
mutual obligations a profitable relationship is assured.
7. ORGANIZATION FOR DISTRIBUTOR
DEALER RELATION
• Administration of dealer relation in large corporation is
delegated to a dealer relation board appointed by the board
of director. The board responsibility is to familiarize itself with
the problems of the dealers and to find out a solution for
their problem.
• To further communicate a district regional as well as zonal
council meet annually.
• Moreover many companies inaugrate its dealer relation
programs to give chances to dealer to be in direct contact
with the top level management. The director of dealer
relation hears dealer complaints and refers them to
appropriate management and collaborates with the marketing
department .
• Another form of dealer manufacturer organization is dealer
relation committee composed of heads of corporate department
having relations with dealers including accounting , claim ,credit.
8. OBJECTIVES OF DISTRIBUTOR
DEALER RELATIONSHIP
• To determine the attitude of distributors and
dealers as a basis for dealers relations and policies.
• To create a better understanding with distributors
and dealers by clarifying companies policies.
• To give them personal confidence by providing
better knowledge of manufacturer resources, facilities
etc.
• By organizing sales training programs, sales
equipment, sales suggestion etc.
• To provide customer finance service to enable dealer
to sell a maximum volume of merchandise to the
customers.
9. OBJECTIVES OF DISTRIBUTOR
DEALER RELATIONSHIP
• To receive dealer complaints regarding sales and
advertising practices and assure resolution of
these complaints.
• To consider ideas, suggestions, or complaints that
may be presented by dealers.
• To review termination of dealer franchise
agreements and decide whether a termination
will become effective or not.
• To adopt distribution policies designed to gain the
goodwill and loyalty of distributor and dealers.
• To familiarize the manufacturers with the
problems of dealers as they are related to
company policies and relationships.
10. OBJECTIVES OF DISTRIBUTOR
DEALER RELATIONSHIP
• To aid distributors and dealers in advertising by providing them with
advertising plans, store and window display, outdoor display sign.
• To keep management appraised of the effectiveness of company
plans and programs as they relate to the company relationship with
dealers.
• To aid distributor and dealers improving their management
method with better interior store arrangement and equipment.
• To aid distributors and dealers in providing better mechanical
service to a users by providing dealers with improved service
equipment, training dealers service personnel and offering a liberal
service policy.
• To stimulate distributor and dealer interest in and loyalty to the
manufacturer products and establish a partnership relationship.
