Mediation in distribution channels
Mediation in trade turnover - is the implementation of specialized companies, organizations or individuals special functions to promote relations of commercial producers and consumers of the commodity market.
According to market conditions middlemen - a subject specific and independent businesses that operate on the following principles:
-rivnopravnist parties that partnership relations mediator of producers and consumers, which in turn provides an alternative choice of counterparties economic relations, equal responsibility for breach of contract;
- Entrepreneurship, meaning business intelligence, interest in implementing the provisions ingenuity in solving specific problems;
- Efficiency, which provides mobility, dynamic and timely execution of tasks supply and marketing activities;
- Maintenance contractors, ie activities which stems from the need to provide them with a range of services;
- The economic interest of economic entities in indirect distribution channels;
- Commercial principles of activity, ie business activity intermediary to obtain sufficient income;
- The contractual basis of relations with contractors.
Storage mediation - a required element of the market.
Enterprises using intermediaries:
-for the factors most optimal time, place, form and property acquisition software products;
- Reducing the costs of the products or operations of logistics of production;
- Reduction of stocks of finished products or the necessary material and technical resources;
- Reducing supply and marketing operations (Fig. 58);
-diyovoho contact with customers or suppliers - banks, transport, storage, shipping, insurance companies, other entities sphere of commodity circulation;
-dosyahnennya high speed response to changes in market conditions;
- Increase the competitiveness of goods;
- Ensuring access to primary market information.
The experience of countries with developed market relations shows that the sphere of commodity circulation, there are many different companies, organizations and businesses that perform mediation. They buy and sell, store and transport products carry service functions, and so on. E. They can be classified on several grounds, but the most important - is the level of universalization (specialization) of their activities.
So, depending on their functions and range of services intermediary companies and organizations can be divided into functional and versatile and functionally specialized. By functional and universal (so-called distributors regular type) are intermediaries who carry out the full range of functions of production, organizational and commercial activities (trade for its own account goods, transportation, storage, industrial conversion in the range of commercial, consumer lending and advances to suppliers, advertising, consulting and information services, etc.). Functional and specialized intermediaries concentrate its activities only on specific groups of functions. They, in turn, can be divided into agents contact information, information, search, attorneys, information and computing, advertising such engaged in sales or trading post by the method of self-service leasing and more.
Information and contact intermediaries specialized in facilitating the establishment of economic relations between suppliers and consumers. For example, commissioners are looking for partners and sign contracts on their behalf, but perform them by sellers or buyers (consignor). Information, or "friendly" intermediaries do not have the goods and fulfill the conditions sales, which dictate manufacturers. These intermediaries often brokers. Specializing in the narrow range of products, they have full information about market conditions, the possibility of purchasing and sales, and therefore able to maintain high profitability of their activities. Search intermediaries (usually industrial agents) are looking for potential buyers in the main production regions of its activity. Attorneys - sign contracts in the name and on behalf of the sellers or buyers, information and computing - exercise machine processing of economic information.
Depending on product specialization are distinguished intermediary companies and organizations universal commodity or commodity specialist. Dominate commodity and specialized - or several groups of materials (bahatotovarni) or odnotovarni full range of specialized or commodity group.
Essential also has a classification of intermediaries in terms of their independence. Matchmaking companies and organizations can be independent, formally independent (Contractual subordination suppliers or customers) and dependent (sales organization, distribution centers and offices of industrial companies that are subordinate corporate). Typically, the latter include businesses and organizations set up by industry directly or indirectly, which own (without the help of the manufacturer) can not adapt to modern market requirements, provide sufficient range of services have highly qualified specialists in marketing and others.
Independent brokers is that on their behalf, at his own expense, at your own risk conclude and implement agreements with suppliers and customers. The traditional segment of independent brokers have standardized products wholesale relatively low unit cost for a wide range of geographically dispersed customers.
Regarding formally independent agents, they are involved in the production and sale cycle of industrial and large commercial enterprises through contracts. For this practice assignments contracts (contracts with commercial agents or attorneys) or commission (which define the rights and obligations of the commission regarding commercial or technical specifications of relationship with clients), consignment (specifying the ownership of the goods transferred for implementation), simple mediation and others.
For organizational fundamentals of brokerage company or organization can be divided into organized administrative (including the state) and contractual. The latter do not provide the administrative chain of command, based instead on self, finding the most effective options for activities, customer satisfaction.
By means of goods brokerage company or organization can be divided into two groups:
- Those implementing commerce sales system based on agreements consignment, commission sale;
-ti that sell goods through wholesale trade firms, specialized and universal store without making special prior arrangements.
By way of rewarding distinguished intermediary companies and organizations that work through or differences in producer prices and the prices of goods at markets or agreed margins for wholesale prices, specific benefits (eg, subscription fee) additional incentive fees, charging system "price compensation expenses +" and by mixed forms of remuneration.
Classify agents can also according to whose interests they express. On this basis distinguish brokerage companies and organizations that represent the interests of suppliers (producers), consumers (perform marketing functions) and their personal (supply and sales).
In addition, classification intermediaries can be made in terms of executable their commercial work (measure of ownership of goods), availability of storage facilities (have actually leased or not at all), a region of lasting relationships with customers, volume of turnover, the size of their operating costs, rights to determine the conditions of sale and more.
Having generally include the following types of resellers.
Simple intermediaries (agents) - facilitate the conclusion of agreements between producers and consumers, not taking direct part in that neither his name nor capital. In Western countries they sell a limited number of products and can represent 8-10 manufacturers. Unlike most brokers agents can sell the goods as other intermediaries - distributors or retailers, and end users. In the latter case, the sales process can be complex technical content, which makes for multiple meetings with the client, therefore, requires a long time.
Brokers (brokers) as agents facilitate the conclusion of agreements without taking part in them neither his name nor capital. In contrast agents, brokers look for customers by offering various sources of goods, and do not enter into long-term business relationship with any manufacturers or with consumers. Brokers find buyers for large consignments, looking for customers who buy goods at low prices in the period when the offering exceeds demand, or determine possible sources of supply in the period of scarcity. In the back of production service brokers typically used for sales of crude oil, agricultural and industrial equipment, computers and others.
Attorneys - is middlemen who choose to sellers or buyers to implement agreements on its behalf and order. In essence attorneys are simple executors of the will of its customers, though a certain extent can act independently.
Representatives - is believed, with which the company signed a long-term agreement on the representation of their interests. The main function of the representatives are debugging and maintaining relationships with those who directly decides on the purchase. They hold negotiations with customers on prices and other terms and conditions of contracts, advising on the use of goods or services, consider and satisfy complaints and claims, liaise with other agents. As emissaries of their company sales representatives demonstrate products, strengthen and develop economic ties personify them, collect and provide information on the position of the product on the market, plans and wishes of customers, sales forecasts, competitor activity and more. In today's market, such as the United States more than 45% of transactions is implemented reps manufacturers.
Commissioners - is the middlemen who sell products manufacturer (consignor) on a commission basis, ie by sellers who own the goods until their realization. A variety of commissioners is the consignee. The latter, usually with strong warehousing and interested in conducting an active marketing policy.
Wholesalers (merchants, distributors) - is a separate independent company that sorted itself the title of ownership of goods traded. Depending on the number of implemented functions and services are divided into firms with full or partial set of services.
In the West wholesalers who offer a full range of services is divided into two types:
- Major wholesalers (conventional) goods (selling a wide range of goods, perform all functions of intermediary distribution channel);
- Wholesalers luxuries (though they offer range of products is relatively narrow, but within each of the nomenclature they have quite a wide range of them).
Firms that carry a limited range of services are divided into:
- Wholesalers who supply certain industrial goods manufactured in large stores (such dealers retain ownership of the goods displayed on the shelves of retail stores, retailers accounts discharged after selling their goods);
- Wholesalers that sell for cash (sell only those who pay cash and receive product SHIPMENT);
- Wholesalers who receive orders from the retailer or from another company and transmit the order to perform the manufacturer or other intermediary, but they do not create reserves and are not engaged in transportation;
- Wholesalers who have small warehouses and vehicles adapted for trade in goods that spoil quickly.
Sales department (sales) manufacturer - is offices or agencies that are separate from the company, have their own storage facilities and supply products to wholesalers or end users.
Repair and service company - is formally independent, nchayzynhovi fragment or completely dependent on manufacturers departments or agencies.
Asamblery - are organizations that buy mainly farm products or seafood in the places of their production or catch. Usually, they are buying a small amount each vendor product is concentrated significant reserves and thus completing large quantities for sale mainly wholesale market centers.
Naftonsyyiyvu stations - and retain leading wholesale gasoline, oil or other large-tonnage oil products.
Trading houses - a large wholesale and retail firms that conduct not only trade and brokering, but also invest capital in production. Typically, the trading house creates transport schemes transport products, it provides warehousing, insurance, and even organized wholesale retail through their shops. After reducing the number of intermediaries trading house increases its revenues, which continue to invest in stimulating the production of goods. The partners of the Firm - is primarily companies that produce consumer goods.
With the development of market relations, the term "mediator" is becoming more common and understandable in Ukraine. However, establishing and implementing economic ties, our producers and consumers primarily trying to establish direct contact, even when this would require higher cost than indirect relationships.
The main problem here is still very low level of culture of mediation in Ukraine, a conceptual framework which should be marketing.
As you know, marketing - a system of ideas, norms and rules according to which the main condition for achieving the goals of the enterprise - producers (revenue, increase sales, market share, etc.) is to identify and meet the needs and demands of consumers more effectively than is able to do competitors. And someone who solves problems better consumer, provides the consumer greater benefits against other competitive offers, while at the same time positively solve their own internal problems, that gets the appropriate revenue covers costs is desired profit.
So, before you start talking about mediation marketing, is to answer some fundamental questions:
- Why producers or consumers need the services of intermediaries?
- Problems of producers or consumers with intermediaries to solve?
- Which benefit from mediation are producers or consumers?
Finally, all these issues can be combined into one. What is the value of the intermediary and its activities for producers or consumers?
According to the theory of marketing value - is significant and important in terms of consumer items, ideas and more. It is a common belief, the belief that good or bad is immaterial in life, relationships, deeds, and so on. D. Generally, the values are as relevant systems. Let us consider the system of values mediator in terms of its customer service. For this we use the theory according to which the values are divided into terminal (understanding of the purpose and final state, which try to approach) and tools (picture of the desired behavior methods to achieve terminal values). Terminal values mediator is the ability to provide on the one hand (in terms of producers), sales of manufactured products and the desired income, and the other (in terms of the consumer) - the purchase of necessary consumer products and maximum satisfaction of its needs with minimal cost to it. Thus there should be a significant advantage mediator qualification of producers and consumers, since the latter never lose their right to carry out the sale of products on their own (unmediated).
From this basic tool agent values are:
-partnerska position independent mediator Counterparty economic relations, which is the equality of relations, taking into account not only its own commercial interests, but also the needs of the operation and development of both producers and consumers;
- A creative approach to solving the problems of consumers and producers, which is to find the best options and most advanced methods such resolution;
- Speed, mobility and timeliness of brokerage as the main prerequisite for reducing the time of purchase - sale;
- Active policy, initiative and enterprise customers in search of their services;
- Knowledge about the market of production and sales, prospects of their development status and dynamics of consumer demand and the needs, strategies and tactics manufacturers etc.
- The ability to provide a wide range of industrial, information, transportation, marketing and other services to create supply and sales related supplies;
- A positive image;
- High qualified personnel;
- Progressive management system.
Thus, the main objective of mediation is to create a proper marketing system of values. The difficulty of this task lies in its multi-: on the one hand, the mediator should be "advantageous" for producers, on the other - for the consumer, whose interests are often diametrically opposed. Thus, producers interested in selling manufactured products at high enough prices, the supply distribution organization, using marketing strategies "push" research markets, consumer behavior, information on the status and trends of needs and demand creation marketing stocks and more. Instead, consumers are interested in purchasing the right products at affordable prices, supply distribution organization, using strategies to "pull" the study of industrial markets, the behavior of producers, information on the status and dynamic offering of products, availability of supply of stocks.
Of course, the benefits of such activities should be itself an intermediary, that intermediary transactions must be profitable for him. But it is his own problem.
Thus, the dual position of mediator, standing between producer and consumer, and need to find their own commercial advantage are the main feature of intermediary marketing.
Creation of an appropriate system of values for both producers and consumers - the main problem mediator. In this connection it should be ready for implementation of relevant marketing functions. The system of functions given in Table. 33.
Of course, this table is not exhaustive of all possible aspects of a mediator. But what is important? Only after these functions, taking into account the needs and interests above their contractors is a long way for the successful functioning of market intermediaries.