Way to Get Profit From Your Own Startup With Export Guidelines
Trading Companies.9.29.11
1. Trading Companies What They Do and How to Use Them September 29, 2011 Lee Mulkey ALM COMPANY A Professional Management and Advisory Firm for Global Wholesale Distributors and Manufacturers That Sell Through Distributors.
17. ALM COMPANY A Professional Management and Advisory Firm for Global Wholesale Distributors and Manufacturers That Sell Through Distributors 01-817-291-4323 [email_address]
Editor's Notes
SPEAKING NOTES Short Lecture: Review the types of intermediaries that comprise the marketing channel. Note that not all of these intermediaries are used by the firm and will vary depending on the industry, product, and other factors as to what channels will be used. Comment that the Marketing Channel is often referred to as the Trade of Distribution Channel. Wholesalers & Retailers – Typically called merchants, or distributors (wholesalers) and buy, take title to, and resell the company’s products. Brokers, Manufacturers’ Reps, & Sales Agents – Look for customers, may negotiate a deal, but do not take title to the products. Facilitators – May take part in the distribution process but generally do not get involved in selling or take title to the products themselves. OPTIONAL QUESTIONS TO ASK: Ask the participants what kind of intermediaries are typically used by domestic firms in China? Ask the participants what kind of intermediaries and/or facilitators does ADI use in China? Ask the participants what kind of intermediaries are typically used by foreign firms with no or little physical presence in China but want to sell their products here? Estimated time for this slide and discussion is 3 minutes. Reference: Kotler, pages 504 & 505.
SPEAKING NOTES Describe some of the ways to manage the distributor if in the 3 rd or below position: ETDBW – Channel Compensation to Individual – but not as a company policy. Reward – not a bribe. Pricing strategy – refer to AMLP. Internal Champion – Define and how to reward.