Distributor and dealer relation


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Distributor and dealer relation

  2. 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.
  4. 4. • 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.
  5. 5. 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.
  6. 6. 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.
  7. 7. 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.
  8. 8. 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.
  9. 9. 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.