Planning Motivation Control

Characteristics of the intermediary organizations of the market. Organization of commercial intermediary activities Commercial intermediary activities in the commodity market

Trade and intermediary organizations include organizations that are legally and economically independent of the manufacturer and consumer of goods (sales, export and other subsidiaries and branches of industrial companies do not belong to this category). Trade and intermediary organizations act in order to extract profit, obtained either as a result of the difference between the prices for purchasing goods from exporters and the prices at which these goods are sold to buyers, or in the form of remuneration for the services provided to promote goods to foreign markets. Trade and intermediary organizations are mainly engaged in commercial activities, although the largest of them sometimes also perform production operations (mostly associated with the processing of purchased and sold goods), transportation of goods, insurance, but these functions are subordinated to the implementation of trade activities. Trade and intermediary organizations, as a rule, have their own material and technical base - warehouses, showrooms, retail stores. The role of resellers is played by government agencies and trading companies in developing countries, which carry out operations for the purchase and export of goods.

Depending on the nature of the transactions, the following types of trade and intermediary organizations are distinguished: trade, commission, agency, brokerage, factors.

Trade organizations are organizations that carry out transactions at their own expense and on their own behalf. They work mainly with regular suppliers and maintain long-term relationships with them. By the nature of the operations performed, trade organizations are divided into trading houses, export, import, wholesale, retail enterprises, distributors, stockists.

Trading houses purchase goods from manufacturers or wholesalers in their own country and resell them abroad; purchase foreign goods abroad and resell them to local wholesalers or retailers, as well as industrial consumers. Trading houses carry out mainly operations at their own expense.

Export organizations are trade enterprises that purchase goods at their own expense in the domestic market and then resell them on their behalf abroad. In some cases, they also carry out commission assignments, while acting as commission agents for foreign enterprises, and not enterprises of their own country. Depending on the functions performed and the nomenclature of goods, export enterprises are divided into specialized, universal and enterprises that procure agricultural goods from developing countries.

Specialized export enterprises trade in any one product or goods that are similar in nomenclature (specialized enterprises are usually conventionally referred to as enterprises in which transactions for any one group of goods account for more than 50% of sales).

Universal export enterprises trade in a wide range of mostly mass consumer goods and typically export products from several industries. They buy goods from many businesses, not even limited to one area, and sell them to several countries. Sometimes these organizations focus on only one or two countries. They are most closely connected with their foreign buyers and try to satisfy their interests as fully as possible.

Import enterprises - buy goods abroad at their own expense and then sell them on the domestic market to industrialists, wholesalers and retailers. These enterprises have stocks in warehouses and, on demand, make immediate deliveries to the domestic market. Import enterprises buy goods directly from foreign exporters, either at commodity exchanges and auctions, or through permanent purchasing offices opened by import enterprises abroad.

Wholesale organizations - act as intermediaries between industrial or procurement enterprises and retail trade organizations. They buy goods abroad at their own expense in large batches and sell them on the local market to individual consumers in smaller batches, while making a profit from the price difference

It is rather difficult to draw the line between a wholesale and an import organization.The main difference is that an import organization is mainly engaged in the purchase of goods directly from exporters, while a wholesaler buys not only imported, but also domestically produced goods and promotes them through its own network much further than import organization. Most often, wholesale enterprises purchase foreign goods in the markets of neighboring countries.

Wholesale importing organizations often perform the functions of not only a wholesaler, but also a retailer, sometimes combining this with the production of any product or with the functions of an exporter without a clearly defined specialization.

Retail organizations - often carry out operations for the import and export of goods themselves, without resorting to the services of import and wholesale organizations. Large retail organizations have a wide network of their branches, subsidiaries and purchasing offices abroad. Parcel retailers accept orders from foreigners and citizens residing outside their home country. A distributor buys and sells goods on his own behalf and at his own expense and is usually located in the country of the importer.

Stockists are enterprises in the importing country that carry out export-import operations on the basis of a special consignment warehouse agreement. The agreement is concluded in addition to the main agreement on the granting of the right to sell, agency agreement, commission agreement. The stockist function is sometimes one of the additional functions of the wholesale organization. Stockists, as a rule, have their own warehouses, buy and sell goods at their own expense and on their own behalf.

Export Commission Organizations can represent the seller or the buyer. The seller's representative (selling merchants) fulfills the instructions of the domestic manufacturer-exporter for the sale of his goods in the foreign market and receives a commission from him. At the same time, the organization usually assumes responsibility for the timely delivery of goods to the buyer, transportation, financing and documenting the transaction, the fulfillment of all formalities in the buyer's country and, in some cases, provides warranty maintenance. On behalf of the principal, she can also organize the storage of goods in her country or abroad.

Commission import organizations act as representatives of buyers in their country. They place orders with foreign manufacturers on their own behalf at the expense of domestic committees. In addition, they can provide their committees with various services, including making surveys of the conjuncture of the commodity markets, monitoring the shipments of goods. Large commission organizations have representatives abroad who maintain direct contact with suppliers and inform the head offices of all changes in the market. Sometimes the import commission organization receives goods for consignment from foreign manufacturers. This is especially true for machinery and equipment.

Organizations acting on behalf of and at the expense of the principal are called agency organizations. Depending on the terms of the agreement, the organization either concludes transactions on its behalf and at its expense, or only mediates when concluding transactions. Agency organizations are characterized by long-term representation and close contact with the principal. Legally, they always retain complete independence from them.

Brokerage organizations (brokers) are a special type of intermediary organizations whose responsibilities include the function of bringing contractors together. Under the laws of some countries, brokers cannot act as buyers or sellers of goods that they are instructed to sell or buy.

Factors are resellers who perform a wide range of intermediary duties on behalf of the exporter. They not only export the products of their principal, but also finance export operations (provision of del credere, payment of an advance to the manufacturer, issuance of loans to buyers), insure export credits, collect payments in the country of sale, and also assist in the selection of foreign agents. Their numerous offices located in the countries of sale take over the operations of receiving goods at the ports of destination.

The concept of commercial intermediaries is their role in organizing the circulation of goods. The concept of the forms and methods of the wholesale of goods. At present, operations carried out with the assistance of organizations and individuals, independent of manufacturers, are becoming more and more widespread in the practice of trading activities, which stand, as it were, between producers and consumers of goods ...


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The use of intermediaries in the sphere of circulation is beneficial primarily to manufacturers, since in this case they are dealing with a limited circle of people interested in selling the goods. The number of direct contacts between the manufacturer and end users is decreasing, while ensuring a wide coverage of the market. Large wholesale bases, small wholesalers, trading houses and shops can act as intermediaries. The use of intermediary structures is due to a number of reasons: the need to invest certain financial resources in organizing the distribution process; the availability of knowledge and experience in the field of market analysis, trade and distribution methods to optimize the distribution network of the enterprise.

Thanks to established contacts with consumers and other market participants, intermediaries are able to ensure the availability of goods to a wide range of buyers, bringing them to target markets. They bridge the long gaps in time, place and ownership that separate goods and services from those who want to use them.

Mediators perform a number of critical functions:

  • 1) market research- determination of customer preferences, collection of information about competitors;
  • 2) sales promotion - creation and distribution of admonishing communications about the product;
  • 3) establishing contact- establishing and maintaining relationships with potential buyers;
  • 4) product adaptation - adjustment of goods to customer requirements (sorting, installation, packaging);
  • 5) conduct of negotiations - negotiation of prices and other terms of delivery;
  • 6) organization of goods circulation- delivery, storage and transportation;
  • 7) financing- finding funds for lending to channel participants and covering the costs of its operation;
  • 8) risk taking- taking responsibility for bringing goods to end consumers.

The performance of the first five functions contributes to the conclusion of the transaction, and the remaining three - the implementation of already concluded transactions. These functions can be performed by both the reseller and the manufacturer. However, if some of them are carried out by the manufacturer, costs increase, and hence the price. The issue of the effectiveness of joint activities is related to how the manufacturer and the intermediary distribute these functions among themselves. When some of the functions are transferred to intermediaries, the costs, and hence the producer's prices, are reduced. The effectiveness of the distribution network of an enterprise depends on the effectiveness of the distribution of functions inherent in the channel between its participants. Since the tasks performed by intermediary structures are diverse, the following categories are distinguished: wholesale intermediaries, retailers, specialized intermediaries.

Wholesale intermediaries profit by buying goods at the wholesale price and selling at a premium, while deducting distribution costs.

Retailers sell goods to end consumers for their personal non-commercial use.

Specialized intermediaries implement specific flows in the distribution channel and are usually not involved in production. These include: insurance companies; financial credit card companies; advertising agencies involved in promoting products to the market; logistics and transport companies; companies conducting marketing research.

Wholesale

Wholesale trade is the business of selling goods or services to those who purchase them for the purpose of resale to retailers or other wholesalers, but not to individual end consumers. Wholesale trade is an important link in distribution and solves many marketing problems. The role of the wholesale trade is to maximize the satisfaction of the needs of retail chains on the basis of supplying them with the necessary goods in certain volumes and on time. Usually located in large cities, wholesale companies are well aware of the needs of end customers and can organize marketing support for retail trade. Experience shows that wholesale firms perform sales functions better than manufacturers, since they have constant contacts with the retail network, and have a well-developed warehouse and transport facilities. Wholesale trade is an important lever for maneuvering material resources, contributes to the reduction of surplus stocks of products at all levels and the elimination of commodity shortages, and takes part in the formation of regional and sectoral commodity markets. Through the wholesale trade, the influence of consumers on producers increases, in turn, the manufacturer chooses the consumers himself. Wholesalers provide partners not only with goods, but also with a wide range of services: advertising at the point of sale; delivery of goods; pre-sale preparation, including packaging and packaging; organization of sales promotion events. In the market for technically complex goods, wholesalers organize service centers with the support of manufacturers. Wholesalers obtain ownership and physical possession of the goods; have warehouses for storing goods, often from several or many manufacturers; are engaged in the promotion of goods; regulate financing, ordering and payment issues with their customers.

Wholesale intermediaries make a profit by buying goods at the wholesale price and selling at a premium, while deducting distribution costs. The activity of any intermediary increases the value of the goods. Therefore, the task of the wholesale link in the sales system is to form a minimum wholesale markup (by rationalizing trade and logistics operations) or to add additional value to the product for the buyer who perceives the set price as fair.

Since the wholesale intermediary must satisfy the interests of manufacturers, retailers and end consumers, many methods and forms of wholesale have emerged.

Wholesale trade classification. By breadth assortment can be wide (1–100 thousand items), limited (less than 1000 items), narrow (less than 200 items) and specialized.

By delivery method wholesale trade is subdivided into the following types: delivery by own transport, sale from a warehouse (self-pickup).

By the degree of cooperation distinguish: horizontal cooperation for joint purchases and the organization of wholesale markets; vertical cooperation for marketing purposes and competition with retailers for end-user markets.

By turnover wholesalers are divided into large, medium and small.

From the point of view of organizing wholesale trade There are three general categories: wholesale trade of a manufacturer, an intermediary enterprise, carried out by agents and brokers.

Trade carried out by manufacturers through their own marketing authorities requires the establishment of a subsidiary wholesale company. The activities of such a company are justified if the range and volumes of products produced are sufficient for their profitable sale. Otherwise, it is advisable to transfer the functions of the wholesale link to independent companies. Manufacturer's sales representatives, agents, and brokers usually do not obtain ownership or physical possession of the goods. They are involved in product promotion and negotiation of terms of sale.

The choice of the type of trade for a wholesaler is determined taking into account the desire and size (capacity) of the retail organization. Wholesale trade with personal selection is advisable when a retailer needs to make an urgent purchase (stocks are running out), choose a "hot" assortment, get a novelty for sale, discounts for self-pickup. Personal selection is used when purchasing garments, fabrics, fur products, etc.

To showcase products of market novelty, the wholesaler will often equip a showroom or showroom. In case of personal selection, a survey of visitors, testing of goods can be carried out. The results should be taken into account in the procurement and sale of the demonstrated products. For many standard products, personal selection is organized using self-service. The selected products are moved by means of small-scale mechanization: stackers, trolleys, transport roller tables, etc.

Wholesale trade by written request or by telephone is carried out on the basis of a pre-signed contract between the seller and the buyer, which stipulates the terms of payment for the order. Delivery of goods to the store can be carried out by the transport of a wholesaler or a retailer. The reliability of the wholesale link delivery system will determine whether the retailer saves time or the speed of delivery does not suit him.

Wholesale trade with the help of traveling sales agents and managers is widespread and is the most active form of distribution. The wholesale company organizes an agent network to find buyers - smaller wholesalers and shops. Traveling agents keep in touch with customers, control the availability of goods in the trading floor of the store, their layout, timeliness of payments for goods, etc. Sales agents are usually assigned to a specific territory, a group of customers, or a product range.

Wholesale trade using telemarketing (calls from the office or sales department) requires the creation of a dispatch service, training of personnel in the skills of conducting telephone conversations. The dispatchers transfer the information received about potential buyers to the sales department. The dispatch service can accept orders from customers, conduct telephone surveys, and keep sales statistics.

Wholesale trade at exhibitions and fairs allows you to conclude supply contracts during a visit to the exhibition by the buyer's representatives or to conduct preliminary negotiations. The presence of a large number of professionals (manufacturers, intermediaries, consumers) at such events allows you to get the latest information on market conditions, innovations, competitors' achievements, etc. It is advisable to conduct promotional campaigns aimed at consumers at exhibitions.

Wholesale intermediaries perform the following functions:

  • purchase for consumers- forecasting demand and, based on the analysis of the results, the formation of an assortment for consumers;
  • sales and promotion for manufacturers- providing manufacturers with a staff of sellers to reach out to retailers and business users. Retailers and business buyers are more likely to contact wholesale intermediaries than to the manufacturer, and trust them more;
  • storage of stocks at low prices- reduction of stocks, warehouse investments and risk of suppliers and consumers;
  • transportation - ensuring the fastest and most efficient delivery due to proximity to the manufacturer;
  • breakdown of large batches - procurement at an economically viable scale for onward transfer in smaller volumes to retail operators and business customers;
  • providing marketing information- manufacturers about consumer demands, competitors' activities, industry trends; consumers - about new products;
  • financing- providing a loan to a manufacturer or consumers, buying a product before selling it himself;
  • risk taking- when transporting and storing products, the intermediary assumes the risk of damage, theft or obsolescence of the goods;
  • management, methodological and technical service- a wholesale intermediary can conduct trainings for retail partners, provide methodological and technical assistance in the design of points of sale.

Types of wholesale intermediaries. All wholesale intermediaries can be classified according to the following criteria: form of ownership of intermediary structures; ownership of the promoted goods and services.

By the form of ownership of intermediary structures wholesale intermediaries are divided into three groups: wholesalers owned by the manufacturer (sales or sales service, manufacturer's stores); independent wholesale intermediaries; cooperatives and purchasing offices owned by retailers.

The manufacturer can distribute products through its own sales division, which provides direct control over the supply. This control is important for technical systems requiring installation and maintenance; perishable goods; consulting services. In addition, the sale of high value goods allows the manufacturer to profitably sell them directly to the end consumer.

The manufacturer's own wholesale structures include sales (sales) branches, a sales office, trade fairs, shopping centers.

Sales branch stores stocks and processes orders for goods, performs warehousing functions, serves as a sales office for sales representatives in their territories. They dominate the marketing channels for machinery and equipment.

Sales office has no inventory of products, but serves as a regional office for the manufacturer's sales personnel. Proximity to the consumer allows you to reduce sales costs and provide effective customer service.

Trade fair- periodic display by the manufacturer of its goods to wholesale and retail buyers.

Shopping center- providing the manufacturer with space for permanent exhibitions of goods. In Moscow, such centers were opened by companies such as Sony, Samsung.

Ownership of the promoted goods and services may remain with the manufacturer or be transferred to independent resellers.

Types of intermediaries. In relation to producers, intermediaries should be divided into dependent and independent.

They purchase goods from manufacturers in their ownership for subsequent resale with an acceptable attachment, which covers their costs and forms a profit (Figure 5.2).

Rice. 5.2. Independent intermediaries

They do not purchase goods as their own, but receive commissions from manufacturers for the sale of products (Figure 5.3).

Most of the wholesalers promote their products to the regions through the creation of a dealer network. Dealers are independent resellers authorized by one or a limited number of merchant companies to provide support to end customers. The regional dealer provides regular purchases of goods, planning purchases and sales. The reduction in the number of dealers during the period of default led to the fact that the most proactive and enterprising remained on the market. For example, a Moscow dealer company, representing a large foreign chain selling footwear, opened a store branch in one of the cities of Siberia, using the experience gained. New store design, trade equipment, non-standard solutions for store presentation, concept

Rice. 5.3. Dependent intermediaries

sales applied by a foreign manufacturer allowed the company to attract the attention of local consumers, declare itself in the city as a representative of advanced technologies, and significantly increase sales. The dealer usually has a parallel business, betting on different consumer segments, bearing independent expenses for business development and receiving all the profits from sales.

Distributor- an individual or legal entity - a wholesale intermediary serving various industries, having warehouses and vehicles and carrying out commercial activities on its own behalf and at its own expense. Generalist Distributors provide a wide variety and quantity of products for a specific geographic region. Specialized distributors distribute a narrow range of products and provide consumers with the information they need. Distributors of a wide profile are also called wholesalers, distributors of multi-product or with a wide range, distributors with their own warehouse. Their advantages are: a wide range of goods, its availability; competitive pricing; established relationships with clients.

The reasons for the rapid pace of change in the activities of intermediaries are related to the increased volume of information and the speed of its transmission via the Internet and e-mail. Today it is necessary to adapt very quickly to new market conditions, to a new type of consumers. Economic instability also makes it difficult for intermediaries to work, forcing them to change their strategy of working in the market. For example, specialized distributors are looking to add new product lines to their assortment to make their business less sensitive to changes in market conditions.

Wholesalers are divided, depending on the range of functions performed, into full-functional and limited-functional.

Full featured wholesalers provide a full range of services for retail and business consumers. They are able to quickly deliver goods to consumers while minimizing inventory. A wholesaler has a staff of salespeople who contact retail consumers, arrange shipping, and provide credit to customers.

Full-service wholesalers are mainly involved in the sale of pharmaceuticals, groceries, and small machinery and equipment in the business goods market. Full-featured wholesalers include shelf wholesalers (shelving jobbers).

Jobber- an intermediary in the market who, like a wholesaler, collects goods into a general category from a number of manufacturers and sells them to retail distributors. Jobbers store and deliver goods (hygiene products, toys) to retailers, place them on shelves, arrange points of sale, set prices, and visit stores to replenish shelves with their goods.

Limited functional wholesalers are divided into four categories: Pay-and-Take Wholesalers, Truck Wholesalers, Short Route Forwarders, Mail Order Wholesalers.

Pay and Take Wholesaler (Cash & Carry) performs all wholesale functions, except for financing and delivery, sell goods of current demand to small shops and other retail outlets for cash. The client arrives for the goods himself, pays for it and takes it to his retail network. German network mark-up Metro Cash & Salu for goods for business buyers (cafes, small traders) is about 10%, while in large Russian chains for an individual buyer it reaches 25-50 %.

Truck Wholesaler is engaged in the sale of products with a limited shelf life (bread, milk, fruits, sweets, etc.). Delivery of goods in small quantities for cash to shops, cafes, supermarkets is carried out.

Short route forwarder accepts orders from consumers and sends them to the manufacturer, who in turn sends the ordered product to the consumer. The shipper assumes ownership of the ordered goods, bears the risks for the period from the receipt of the order to the delivery of the product to the customer, but does not store or transport stocks. Works in the market for the sale of bulky goods - timber, coal, etc.

Mail order wholesaler sends out by mail or by road delivery catalogs that customers order by mail or by phone. Works in the jewelry, cosmetics, sporting goods market.

Dependent wholesalers may take over the storage and transportation of the product, but never take ownership of the product. The main function is to bring the buyer and the seller together.

Agents and brokers are divided into five groups: commission traders, auction houses, brokers, sales agents, manufacturers' agents.

Commission traders take goods into physical possession. They often take agricultural products from farmers, bring them to the market and sell them.

Auction house collects in one place buyers and sellers, provides an opportunity for buyers to familiarize themselves with the product before making a specific offer on the terms of sale. The sale of goods of different price levels is also carried out at online auctions. Trade through the auction house is used when selling art objects, furs.

Broker works mainly in order to bring the seller and the buyer together, to help in the negotiation process. Represents either the seller or the buyer, but not both. Receives payment from the client upon completion of the transaction. Operates in industries where there are many small suppliers and buyers (in the real estate market, securities). Since he is involved in one-time deals, he cannot be an effective channel for goods movement.

By creating a stable distribution channel, a company can choose a sales agent or manufacturer's agent as a partner.

Sales agent(sales agent) has the right to make decisions on prices, promotion of goods, and provides financial support to the manufacturer. Often he has the exclusive right to sell the products, works as an independent marketing service, as he is responsible for the marketing program for the client firm's product. This is usually due to the inability of the client or manufacturer to engage in sales. Works in the field of sales of products of the textile, machine-building, metallurgical industries.

Manufacturer agents organize sales on the terms of the manufacturer (price, territory, delivery and warranty services, percentage of the commission is negotiated by the contract). Serves representatives of small businesses who cannot maintain their own staff of regional sellers. They work with several clients at the same time, are used to develop new markets. Sell ​​furniture, clothing, electrical goods, etc.

Cooperatives and purchasing offices owned by retailers, they conduct wholesales on the market. Retail stores can join forces to organize joint purchases and form purchasing groups that include multiple stores. Such purchases provide cost savings due to the purchase of large quantities of goods. A group of retail stores can create a purchasing cooperative. Large retail chains set up their own centralized purchasing offices to conduct direct purchases from manufacturers.

Trade and intermediary activities- this is an activity in which intermediaries act as counterparties in the sale and purchase of goods; are engaged in the study of the supply and demand of goods and their purchase from producers, wholesales of goods by buyers.

At all stages of the development of the domestic economy, the choice of channels for the physical distribution of goods belonged to the most urgent tasks solved in the field of material and technical support (MTO) of production. It was carried out mainly by separating transit and warehouse supplies. At the same time, there were significant differences in the motivation of the wholesale and production links accepted by intermediaries.

The position of intermediaries in warehouse supplies was determined mainly by the size of orders submitted by consumers, the possibilities of their combination, the achievement of the total volume of warehouse supplies, ensuring the level of income and the availability of funds for the development of the material and technical base. When solving the problem at the highest levels of management of the MTZ system, the logs of the approach were partially used - options were selected that reflect attempts to optimize the levels of total stocks of products and costs in the delivery process, including transport services.

The production links, acting as consumers, considered it expedient for themselves to use warehouse delivery in cases where the funds allocated to them for material resources did not allow ordering products directly to manufacturing enterprises in accordance with the established norms of transit supplies.

It should be noted that with the motivation of intermediary links and consumer enterprises, their interests in warehouse supplies in what coincided, which contributed to the development of this channel of commodity circulation. Therefore, there was a systematic increase in both the volume of warehouse supplies and their share in the total turnover of products.

However, the absolute and relative volumes of warehouse supplies clearly did not meet the requirements of intensive economic growth, since they were dictated mainly by the desire of consumers "to keep within the allocated funds."

As for the manufacturers-suppliers, they were not only completely indifferent to the choice of distribution channels, but also their attitude to the fulfillment of orders of intermediary organizations as third-rate customers determined their unreliability. In turn, the intermediaries showed no interest in taking on commitments to improve warehouse supplies.

The establishment of market relations, highlighting the problem of product sales, changed the situation that had developed radically. The main stakeholder in the organization of rational distribution of goods has become a product manufacturer. In a market economy, its viability depends not only on the production of goods in demand, but also on the ways in which they can be offered and sold to buyers on a mutually beneficial basis.

The market is based on the high activity of the seller, his real interest in the continuous search for effective forms and methods of meeting demand. Of course, the activity of the producer does not cause the passivity of the consumer of the product - he himself also acts as a producer of goods, works, services. It is important that the consumer, when choosing the best option to meet his demand, has an active partner in the person of the product manufacturer, who is ready and able to offer both the necessary product and a profitable way to purchase it.

The results of the activities of enterprises in the market conditions entirely depend on their own entrepreneurial spirit and ability to find and use in a timely manner all the reserves for increasing the efficiency of their production. But this alone is not enough. An important and organic addition to effective production activities is a wide range of active actions in the sphere of circulation, which presupposes the achievement of the final goal - the sale of goods, which means the actual recognition in the market of the usefulness and rationality of the entire work of the enterprise.

The expediency of a manufacturer's appeal to an independent reseller arises, as a rule, in the production and sale of products of fairly widespread use, used by many consumers and in small quantities.

A manufacturer cannot do without the help of a reseller for two reasons:

1) striving for the maximum expansion (or preservation) of its segment in the market in a competitive environment;

2) the impossibility of keeping costs at an acceptable level within the current market prices when trying to meet a large number of small orders, they spontaneously arrive and fulfill them within the time frame required by the buyer.

But what is economically unsolvable (or solved with great losses) for the manufacturer is quite achievable for a reseller operating in the zone of maximum proximity to the consumer and converting large batches of products, bought into small ones, corresponding to individual demand. At the same time, a high level of service for small consumers is combined with the advantages of loading production from manufacturers with sufficiently large orders and using them to deliver the manufactured products to the consumption zones of mainline transport. In turn, resellers carry out large warehouse operations and have the ability to efficiently use vehicles to deliver goods to the consumers they serve.

Trade and intermediary the link, thus, provides with the help of other infrastructure enterprises the communication of the initial and final links and the coordination of their mutual and at the same time conflicting interests. But at the same time, the presence of an intermediary link in itself raises the problem of its own interests and the economic logic of behavior. This problem is as follows:

1. Choosing an "economic niche" that is, assessing the content and scope of the reseller's potential activities in the product market. These scales must be sufficient for profitable operation, taking into account the prices prevailing in the market and projected own costs, which in turn depends on the product specialization, the breadth of the range of goods sold, the number of customers served and the service area.

With the same scale of functioning of an intermediary, the area of ​​his activity is directly proportional to the level of his product specialization, while trade costs are inversely proportional to the level of specialization. Thus, narrow specialization implies, other things being equal, the need to expand the service area, but with its limitation depending on transport costs.

2. The required level of commodity stocks. The fact is that in a trading enterprise, the funds invested in stocks have a much greater impact on the efficiency of its activities than in an industrial one. With approximately the same turnover of fixed assets in the manufacture and circulation of production products, in industry their ratio to material circulating assets is 5-5.5: 1, while in trade in industrial goods it is 0.5: 1. So, if industrial enterprises, as a rule, fixed assets have a decisive influence on the overall rate of turnover of all invested funds, while in trade and intermediary links - circulating assets. Therefore, resellers are faced with the problem of resolving the contradiction between their desire to maximize the satisfaction of demand and content for this sufficiently high level of commodity stocks in a wide range, on the one hand, and the need to ensure a high turnover rate of the funds at their disposal, on the other.

In an effort to find a way out of this situation, the intermediary can ignore some of the potential orders of buyers in order to reduce the level of inventories by limiting the range of his purchases only to those types of goods for which the batch sizes coming from manufacturers can be quickly sold. But this means a loss of clientele and a weakening of its position in the market. A more rational and practically real other way is to change the source of goods receipt, that is, to purchase them not from the manufacturer, but from another reseller, who is more profitable to purchase them in large quantities. In this case, a new link appears in the chain of movement of goods, thanks to which, with a certain increase in costs, it becomes possible to expand the range of goods sold in the link of the final sale with a minimum level of their stocks.

The modern market with its inherent competitive relations creates conditions for expanding the scope of activities and developing the activity of resellers, who, like manufacturing enterprises, use the concept of marketing in their activities.

Trade and intermediary activity in the conditions of developed market relations is characterized by the following features:

1. Motives and conditions of occurrence - the result of the action of the objective laws of commodity production and circulation, the formation of the real needs of business entities.

2. Role and place of mediation- This is an organic part of the trade and distribution system, effectively contributes to the promotion of goods from producer to consumer.

3. Subject of commercial intermediation- any product is intended for professional use or resale.

4. Economic guarantees- an intermediary entrepreneur shares the risk with manufacturers of goods in connection with the impossibility of selling them or selling them at prices that do not provide the required level of profit.

5. The main objectives of the mediator- the intermediary works in favor of his counterparties and in his own interests in order to obtain the corresponding profit.

6. Legal relationship to the subject of mediation- mainly acquire ownership of goods.

7. Organizational conditions of operation- the variety and dynamism of organizational forms of mediation, types of work and services.

8. Degree of freedom and limits of activity- free specialization is expedient in the market segment where the qualification advantage can be achieved.

9. Methods and techniques for working with consumers- a differentiated approach to various needs, an orientation to specific consumer needs, carried out on the basis of marketing research on a segmented market.

10. Source of income- payment is determined by socially necessary costs for the implementation of these works within the wholesale price of the manufacturer and the price of demand.

11. Remuneration for labor - based on the results of activities and the real contribution of each employee.

The activities of the sales and intermediary link should be based on a number of principles:

1. Enhancing the role of strategic planning and management to ensure stable production and consumption of products in the national economy, creating on this basis conditions for a more stable and reliable functioning of the sphere of circulation.

2. The allocation of economic in stimulating material and financial flows in the most effective sectors, based on the economic, political and social tasks solved by the country at each specific stage.

3. Worldwide mobilization of internal reserves, ensuring the rational use and economy of financial and material resources in every link of the national economic complex.

4. Increasing responsibility for the fulfillment of contractual obligations for the supply and transportation of products by all participants in the market turnover on the basis of mutual rights and obligations stipulated by economic agreements, contracts, orders.

5. The most efficient organization of the process of sales of products manufactured by enterprises and purchases of material resources by consumers in the required range and in a form prepared for production consumption with minimal distribution costs and total stocks.

6. Creation of economic conditions and the use of marketing tools that allow efficiently and effectively meet the needs of buyers, flexibly maneuver material resources and accelerate their turnover in favor of stabilizing and growing the economy.

7. Creation of a modern, highly technically equipped material and technical base with key elements of the market infrastructure in the commercial sector, its continuous improvement for the proportional development of the sphere of circulation in accordance with the requirements of the sphere of production.

8. The use of scientific methods of material flow management based on modern logistic approaches and methods, wide use of the possibilities of the electronic market, the Internet system in order to maximize and timely meet the market demands of buyers.

9. The use of forms and methods of social and ethical marketing to establish mechanisms for mutually beneficial agreements not only with market partners, but also in society through the active use of communication models, in particular public relations.

Compliance with the principles of the formation of commercial ties will allow the trade and intermediary system to actively influence production, identify discrepancies between supply and demand for certain types of goods and services, and form rational commercial ties between suppliers and consumers.

The company needs to determine which of the intermediaries it knows are able to ensure the optimal functioning of its channel. Consider three distinguished groups of intermediaries shown in Fig. 23 sales representatives, wholesalers and retailers.

Rice. 23. The main types and forms of mediation

Usually, several selection criteria are applied, which are guided by the manufacturer when choosing an intermediary:

- company size , measured by sales volume is the most common criterion. In most markets, the bulk of revenue comes from a small number of traders (law of concentration). In such conditions, dealing with all distributors is very expensive and ineffective;

Service quality - another important criterion. Intermediaries are paid to perform certain functions that some perform more efficiently than others;

- the technical competence and equipment of the distributor is the third main criterion, especially for the market of complex goods, where after-sales service plays an important role.

Wholesale trade covers any activity related to the sale of goods and services to those who buy them for further resale (retail) or professional use (industrial enterprises, organizations, institutions). Mutual sales among wholesalers is also an important part of their activities.

Wholesale activity can be carried out in three main organizational forms:

1) through the wholesale subdivisions of manufacturing firms (using direct sales channels);

2) through independent wholesale intermediaries;

3) through dependent wholesale intermediaries.

Commodity intermediation should also be considered in terms of distribution channels. There are two types of intermediary organizations - independent and dependent. Let's consider each of them.

Independent intermediaries include wholesalers serving various industries and offering themselves to manufacturers of goods that consume those industries as sales intermediaries. Wholesalers take ownership of the goods and sell them to the consumer from their warehouse, taking on some of the marketing risk.

The classification of wholesale intermediary enterprises is shown in Fig. 24.


Rice. 24. Classification scheme of independent wholesalers

When using direct distribution channels, the manufacturer performs all the functions in the distribution of his goods through his sales divisions. The main structural units of direct channels are sales branches and sales offices of the enterprise.

Sales branches are located in places where numerous consumers of this product are concentrated. They have storage facilities for saving significant stocks, as well as a service system, if this is due to the type of market and type of product.

Sales offices of enterprises do not perform physical operations with goods, since they usually have only their samples. The task of these departments is to establish contacts with consumers, advertising activities, collecting orders and placing them, organizing the transit delivery of goods from the warehouse of the enterprise or its sales branches.

The sale of products through the sales divisions of the manufacturer is more typical for the industrial goods market, although sometimes it is also carried out on the consumer market. Its use may be advisable under the following conditions:

· The financial capabilities of the enterprise allow it to create and operate a system of its own sales bodies;

· The volume of sales of products is sufficient to cover the costs of direct marketing;

· Consumers of products are geographically concentrated;

· The market for this product is vertical, that is, the product is sold by representatives of one or two industries that have a small number of enterprises;

· The goods are shipped in large quantities with the maximum filling of the vehicle (railway cars, etc.);

· The product is technically complex, requires special installation and adjustment.

The advantages of a direct channel include the fact that the sales staff of the enterprise is engaged in the sale of its products and knows them well. Qualified specialists of the company can provide expert advice and technical assistance in mastering complex technology at a very high level.

In general, direct distribution channels for most products are considered ineffective, and firms attract different types of intermediaries.

Dependent sales intermediaries include brokers, sales agents, commission agents, purchasing offices, auctions. According to the classification shown in Fig. 25, Dependent Sales Resellers are classified into a number of groups, the most important of which is the agent group, made up of manufacturer's agents and sales agents.


Rice. 25. The main types and forms of activity of dependent sales intermediaries

Independent intermediaries are called intermediaries who take ownership of the goods and, accordingly, the risk of their further sale. This is the most widespread type of wholesale intermediaries in the world.

Independent wholesalers are divided into two groups:

Full service wholesalers (distributors, wholesalers);

Wholesalers with a limited service cycle (wholesalers-salesmen).

Full service commercial wholesalers provide a wide range of services:

Form a product range;

Store inventory;

Provide trade credit;

Provide delivery of products;

Help manufacturers in marketing research, advertising, planning.

Wholesalers differ among themselves in the breadth of the assortment set of goods. Highly specialized wholesalers work with one assortment group of goods with a significant saturation. Mixed assortment wholesalers deal with several assortment groups of goods.

Distributors trade entirely on their own behalf, conclude contracts with both sellers and buyers, have warehouses, service products and perform many other intermediary functions. Quite often they act as general intermediaries for a certain manufacturer.

Limited service wholesalers perform significantly fewer functions. These are various types of intermediaries, including:

§ wholesaler-traveling salesmen, who are mainly engaged in a limited range of short-term storage goods (milk, bread), which they sell for cash, bypassing retail outlets;

§ Organizing wholesalers who work in industries that supply raw materials or other bulk goods. From the moment the order is accepted until the delivery is completed, they take full ownership of the goods and all associated risk. Such wholesalers do not have storage facilities, but only organize the delivery of ordered goods from the manufacturer to the consumer.

The use of independent wholesale intermediaries is advisable under the following conditions:

Sales activities are carried out in a horizontal market, where consumers belong to different segments, which requires a strong sales network, which can only be created by large manufacturers;

The market is geographically dispersed, as a result of which direct contacts with consumers are unprofitable;

Consumers buy goods in small batches, inconvenient for warehouse and transport handling; the wholesale company has the ability to combine individual small orders in commercial size lots;

The product meets standard needs and does not require implementation through direct sales channels;

There is a need for frequent urgent deliveries to numerous customers.

A large group of dependent wholesale intermediaries is made up of agents and brokers who, unlike resellers, do not take ownership of the goods being sold. Accordingly, they do not make independent decisions regarding prices and other terms of sale and act within the powers granted to them by the manufacturer in accordance with signed contracts, receiving commissions or payments for services for mediation.

A characteristic feature of agents and brokers is specialization in the field of information and contact functions. The main difference between them is that agents work mainly on a long-term basis, while brokers work on a temporary basis.

Brokers connect consumers with sellers and take part in negotiations on the terms of delivery of goods. The broker's services are paid by the party that attracts him. However, it does not contain inventory, does not take part in financing the agreement and, as a rule, cannot complete its conclusion without the formal approval of the customer.

The manufacturer's agents work with the manufacturer under a power of attorney and carry out sales operations on behalf of and at the expense of the principal, receiving appropriate remuneration for this. They may work for multiple manufacturers and deal with non-competitive products that complement each other. Such agents can be granted the exclusive right to sell these goods in a certain territory, which makes it possible to avoid conflicts caused by the intersection of interests, and to have a sufficiently complete range of products for their territory of sale. They do not provide loans, do not have warehouses, and only sometimes help manufacturers in marketing research and planning.

Most of these agents are small commercial organizations.

As a rule, the manufacturer's agents sell an insignificant part of the company's products and do not significantly influence its marketing policy.

Sales agents are contractually responsible for marketing all of the manufacturer's products. We can say that they are turning into marketing divisions of the manufacturer and, within the framework of the given powers, negotiate prices, credits, supplies and other terms of sale. Significantly affect the marketing strategy of small producers.

Sales agents' offices are often located in large sales centers and are directly close to the consumer. Such agents do not have storage facilities; the supply of goods under the concluded agreements is carried out in transit.

With the ability to employ multiple manufacturer agents, a firm can only employ one sales agent.

The use of agents and brokers is advisable in such cases:

The manufacturer has a weak financial position and cannot create its own sales network;

The goods do not require complex maintenance and are suitable for direct shipment to consumers;

The manufacturer enters a new market and has problems establishing business contacts.

Intermediary commission agents have warehouses for storing goods, which they sell under a commission agreement on their own behalf at the expense of the principal (manufacturer). Commission agents receive goods for sale on consignment principles.

Consignment is a condition for the sale of goods through the consignment warehouses of intermediaries, when the ownership of the goods that came to the intermediary's warehouse remains with the supplier until the goods are sold to the consumer.

Commissioners sometimes offer credit, secure the supply of goods, facilitate marketing research, but generally do not assist in promoting the goods. They can negotiate prices with the consumer, provided that prices do not fall below the minimum level specified by the manufacturer, and also participate in auctions.

Test questions:

1. Features of trade and intermediary activities in Ukraine.

2. Classification of independent wholesalers.

3. Types and forms of activity of dependent sales intermediaries.

4. The main types and forms of mediation.