In today’s business the final consumer is often referred to as the crucial part as they decide what to purchase and companies act accordingly. That’s why even manufactur-ers more and more try to steer and guide consumers – they are a key for (future) suc-cess since controlling the consumer means controlling the entire chain of distribution.
However, as already mentioned for the sake of this thesis the author will exclusively focus on wholesale. Of course, the remaining channels cannot be considered less im-portant but will not be part of this investigation. Hence, the following section will elabo-rate on wholesale business before the authors will then provide some further insight into sales management.
2.2.1 Wholesale business and it’s characteristics
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In case of not being pure distributors, wholesalers are active in a quite competitive en-vironment. Wholesalers have to differentiate themselves through sales policy instru-ments and associated services exclusively. Ergo, “sales” is absolutely crucial since efficiency and effectiveness of the sales force have large impact on the company’s bot-tom line. In combination with quite a high proportion of marketing/sales/distribution costs, particularly wholesaler need to have accurate controlling and sales management tools in place. When it comes to profit improvement STEINKELLNER stated that, even though there’re many ways, wholesalers tend to resort to the easiest options to im-prove margins, which is increasing sellout price levels. This, however, usually ends up in a decrease in sales volumes, which in turn possibly even results in financial harm. The second option is lowering cost prices, which is mostly realized by increasing pur-chase volumes. Unfortunately, larger purchasing volumes often result in higher stock with an according decrease in stock turn-rate, an increase in slow-moving articles and eventually less liquidity. This trade-off must be optimally
This case concerns Greene’s Jewelry Wholesale, LLC and former employee Jennifer Lawson. Greene’s sues Jennifer Lawson for breach of the confidentially agreement that was signed when first employed and Ms. Lawson counter-sues Greene’s for wrongful termination. Greene’s Jewelry Wholesale, LLC. is owned by Mary Jane and Allen Green, in Derry, New Hampshire. They own a warehouse and two storefronts originally starting back in the late 1950’s. Greene’s employs 502 individuals in a variety of departments which include sales and marketing, research and development, human resources, and manufacturing. The primary asset of Greene’s Jewelry is their secret patented process for creating a synthetic gold-colored material called “Ever-Gold,” which is used in
To start off with, in a sense, wholesalers provide a major service to retailers and are crucial to the success of those retailers. One reason that the wholesalers are so important to retailers is that without the wholesalers, retailers would not have an accessible way to get their products. For example, if Macy’s was not connected with a wholesaler, they would not be able to gain products, therefore making it difficult to make a profit. Another reason that the wholesalers are very important is that they give the retailer a reason to mark up the product allowing them to make a profit. For instance, if a retailer purchases a product for $50, they can then mark the product up to $75 to make a $15 profit off of that item. Overall,
Key Issues: At the end of 2012, Costco was a successful business; however, there are some issues that they would need to deal with. These issues mainly arise from their previous successful ventures as a warehouse wholesale company. The first issue is that Costco has competitors that can actually be and are a threat to their success. Competition allows a company to improve itself and prove its prowess to its customers. However, when a competitor is able to provide the service at a much reduced cost, problems will arise.
Firstly, one of the most important focuses would be given to the target customer as we will need to know more about their taste and preferences. What it is they need and or want. Particular topics covering this area will be, the need for ‘Market segmentation’, identifying a competitive position in the market about to enter in the market and studying consumer behaviour, will all be discussed.
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
Over the last decade, product marketing and ways through which communication takes place between manufacturers and consumers has changed tremendously (Belch & Belch 2004). Due to the technological revolutions and the rise of innovations such as the mobile phones and the internet, control over information has shifted apparently from the manufacturer's hands to the hands of consumers (Belch & Belch 2004). The market environment has also changed due to globalization of marketing strategies, loss of confidence in media advertising, increased reliance on targeted communication methods, and media fragmentation and so on (Belch & Belch 2004).
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
In the 21st century, small and large, private and public businesses are all aiming towards economic growth. The small business marketplace is extremely dynamic and the changes are fast. Here are some facts from the US Small Business Administration on small businesses. There are about 30 million small businesses in the United States and employ just over half of the country’s private workforce. They employ a staggering 40% of high tech workers such as computer professionals, scientists and engineers. More than half of the small businesses are home-based businesses and two percent of them are franchises. One of the most important aspects is the fact that a majority of innovations in the United States come from small businesses. In 2008, there were 627,200 new businesses that started, 596,600 businesses that were closed and 43,546 companies that filed for bankruptcy. According to business experts, of all the small business startups, one-third of them are profitable and successful, a third of them just about break-even and the rest of them are down with negative earnings Some buyer’s develops as independent business owners, while others are more likely to prosper as franchise owners. According to a recent report by the Small Business Administration (2007), the United States had approximately 26.8 million small business firms in 2006. In fact, as recently reported by Moutray (2006), most firms in the U.S., are very small and account for about half of the country's non-farm real GDP. Over the past decade small business has generated 60–80% of new jobs annually. In reality, there are easy answers to the independent business versus franchise dilemma. Although, a franchise system offers benefits to owners such as brand recognition, to inc...
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
Value is an integral part of marketing (Newman, 2015). If consumers are provided with goods and ideas of greater value by a business compared to its competitors, that have shown the businesses in depth market research taken in order to fulfill its consumer’s particular needs then it can create longer affiliations with the consumers due to the level of satisfaction and quality provided. Based on the concept of “Demand Chain Management” (Madhani, 2015).
A small business can be defined as a legal entity consisting of very few employees. Establishing a business such as a proprietorship is the least complicated among business structures. Proprietorships also have a major advantage over other business structures with regards to filing taxes. Profits generated by the business are taxed at individual tax rates thus avoiding the double taxation incurred by corporations. Local economies, government offices, schools and the unemployed benefit greatly from the growth stimulated by these companies. The taxes collected from small businesses and job creation makes small business a vital part of the community.
The shifting of the consumer’s taste of simple products to high quality branded products is not sudden. It grew out in the middle of the 20th century and the companies selling various products needed a new way to differentiate their products from the others giving it a unique identity.
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach