Distribution of goods. Choosing a product distribution system. Procedures and strategies for promoting goods and services

Since we are a small company (limited funds and production capabilities) and are entering the market with an existing product, there is no need to create a network of stores to sell our product. It would be most advisable to distribute our product through existing stores (we have already negotiated with stores of the Detsky Mir chain and various large and not so large stores specializing in children's clothing, and after looking at our samples, they agreed to take them for sale with a minimum volume batches of 10-50 pieces and an extra charge of 10%). Thus, we will have a one-level distribution channel for goods - through retail. In the future, we plan to distribute our product not only in the city of Khabarovsk, but also in surrounding areas, expanding our distribution channel.

Since our production volume is small and we cannot increase it quickly, we need the fastest possible turnover of money. To do this, we will first need to conduct test sales (in small batches to as many stores as possible) in order to find out where to sell faster, perhaps obtain some soft data on consumer preferences, and adjust our distribution policy. As for stores, taking into account our pricing policy, it is better to choose both universal and specialized ones, with an average or low price level.

The volume of inventories must be at the level necessary to ensure uninterrupted operation. As for storage locations (both finished products and inventory), the director’s dacha can be used in this capacity at first, and then, in the event of a significant increase in production volumes, it will be necessary to rent warehouse space. Regarding the transportation of goods: our company has two minibuses that can be used as delivery vehicles.

In principle, clothing is one of the goods that does not sell out very quickly. And if our children's clothing sells out too slowly, then in the future we can use a different distribution scheme for the product (however, if we take it as the main one, then it is necessary to draw up a different marketing plan with this in mind). The essence of this scheme is as follows: we sell some of the goods through the distribution network (see above) in order to have money for current expenses, and the rest we circulate “in circles” to ensure production. That is, by barter we exchange clothes for raw materials for them (for example, cotton in Birobidzhan), then we give it to a spinning (later weaving) factory for processing (we don’t pay them anything for this, since the raw materials will be tolled for them they just keep part of the raw materials as payment). Then we take the fabric from them and use it to produce our own children's clothing. The following speaks in favor of this scheme:

  • a) they don’t buy raw materials from producers of raw materials (processing enterprises have no money), they are cheaper than finished products, producers are ready to barter supplies with clothes, i.e. there is a real agreement;
  • b) there will be no delays in raw materials, production will be stable and can be expanded, and the problem of non-payments will be eliminated;
  • c) the problem of selling a certain part of the product is solved;
  • d) working capital in the form of goods does not depreciate like money.

Main disadvantages:

  • a) it takes time to conclude agreements with all participants in the scheme;
  • b) you will have to control the entire chain yourself.

Any businessman knows that correct evaluation and understanding of his products by customers leads to increased sales revenue. The task of communication marketing policy is to promote the product of a manufacturer or entrepreneur. How are products distributed on the market and through whom? What are the ways to successfully market a product?

Promotion– an action that is focused on increasing sales performance through a certain communicative stimulation of clients, contractors, partners and employees. It pursues the following goals: increasing consumer demand and maintaining a positive attitude towards the company. Product promotion carries out such important functions, How:

  • creating an attractive image of the enterprise: prestige, innovation, low prices;
  • bringing information about products, including their characteristics, to end consumers;
  • maintaining the relevance of the product (service);
  • motivating all participants in the product distribution chain;
  • transformation of the usual perception of products;
  • dissemination of information about the reliability of the company;
  • promotion of expensive goods.

The combination of all these functions can be called a complex. That is, a complex for promoting trade items is a certain generalization of marketing tools and techniques that guarantee the delivery of information about the entrepreneur’s products to end consumers. This set of actions consists of different methods of promoting a product.

Promotion methods– these are certain marketing techniques, means and tools that are used to achieve the goal of increasing sales. They are considered an integral part of a well-formed and competent product advertising strategy or company communication policy. There are a sufficient number of methods for promoting a product in marketing, among them there are some that are particularly popular.

Basic methods of product promotion - 4 components of a marketing campaign

Promotion method 1. Advertising

Advertising is a specific type of communication achieved through the commercial dissemination of information with a clear indication of the source of funding. You need to understand that advertising in general and it as a means of marketing are two different techniques.

An important function of advertising in the second case is to provide potential consumers with information about the manufacturer’s new products. An entrepreneur can spend a lot of money on various campaigns to promote a product, but if it is not popular among buyers, then it is quite difficult to implement it.

  • validity;
  • analysis of the proposed item of trade.

When a person does not find the specified provisions in the information about a product, then the benefits from advertising will most likely come to naught. The arguments with which an entrepreneur can interest consumers in his product are divided into the following types.

  • Subjective– this is the emotional mood that appears from watching an advertisement (for example, after a video about “Fruit Garden” juice).
  • Objective– this is the specificity of the product (for example, advertising of Mezim tablets).

Communication with customers through advertising should be exclusive and different from the presentation of information about competitive products. Uniqueness can be associated with the product, the script of the communication block, or the target audience using this product. The consumer must be provided with a special product, otherwise one should not count on successful sales.

If a potential buyer remembers your advertisement, then it conveyed certain information to him, which expresses the value and effectiveness of the campaign undertaken. Based on the level of perception, three types of information used to promote a product can be distinguished: .

  • In-demand information that is accessible, understandable and quickly remembered. You don't have to spend a lot of money to distribute data like this. Advertising will work even if you submit an ad in the newspaper in several lines. Thus, the target audience in the form of students will find information about writing essays and term papers without much difficulty.
  • Random information that is not remembered or is stored in memory with great difficulty. This type of information is associated by consumers with the advertising medium. That is, the future buyer must understand that even if he needs this or that product or service, he can find it somewhere. For example, most clients who decide to replace old windows with new ones understand that they will find many offers in free advertising publications. Accordingly, the task of the window seller is to regularly submit advertisements to newspapers that are freely distributed among consumers.
  • Unnecessary information that the consumer ignores or is irritated by. There are products intended for a narrow target audience; an overabundance of advertising for such items can irritate other people. Sometimes the seller does not know which buyer needs his product, and which will be dissatisfied with the information about him that often comes across.

When a person consciously comes to the understanding that he needs the advertised product, he makes a decision and buys it. The goal of marketing is to correctly identify the target audience and create a tool for communicating information about a particular product.

You don’t need to make every effort to force people to buy your product; you need to take the right approach to creating a communication campaign that leads the consumer to a conscious purchase. Advertising methods for promoting products are quite effective if marketing principles are correctly applied.

Promotion method 2. Direct sales

Conducting a dialogue between the seller and the buyer, the purpose of which is to provide assistance in purchasing products, is called direct sales. This method of promoting a product does not require financial investments and is considered a higher level of business activity than the provision of any services or regular retail trade.

Even if all marketing conditions are met, if there is a careless attitude towards direct sales, the manufacturer will not be able to effectively promote its product. The secret of this type of implementation is that an ordinary seller does not just accept orders, but becomes an proactive deal-getter.

We do not recommend ignoring direct sales, as this can significantly reduce profits. For example, an entrepreneur has chosen a good location for a commercial outlet, purchased a high-quality product in demand for sale, but the sellers communicate rudely with customers, are not interested in revenue, and, as a rule, the level of trading operations will be extremely low.

The primary function of personal selling is to transform the sales agent into a deal getter. The formation of this type of product sales consists of two main aspects.

  • Customer Focus. This method is aimed at identifying customer needs and recommended ways to implement them.
  • Sales orientation. The method is considered offensive, as it is aimed at aggressively obtaining deals by any means.

Pros of personal selling:

  • personal attitude towards the consumer and the ability to provide all information about the product;
  • minimum expenses that do not bring financial effect;
  • feedback from the consumer, allowing you to make changes and additions to advertising events.

The disadvantage of this method of product promotion is the high level of turnover costs. The more exclusive the product being sold, the more effective personal selling is.

This method of implementation brings good results in solving the following marketing tasks: searching for potential consumers and information about the market, etc. Relying on competent product sales personnel, the entrepreneur has the opportunity to effectively communicate with customers and quickly respond to changes in the market situation.

Promotion method 3. Propaganda

Propaganda is a procedure for forming reliable relationships with society through the free use of space and time in the media. The purpose of this tool is to create a favorable attitude towards the company in order to make the most effective communication actions in the future. Propaganda concerns the entire enterprise, and to conduct public advertising it is necessary to have a large amount of information about the company, including confidential information.

The most important propaganda mechanisms:

  • speeches: representatives of the company should be active when opening various events, making welcoming speeches at them;
  • Events: holding and participating in seminars, round tables, online meetings, press conferences, competitions, exhibitions, competitions.;
  • news: bringing good news about the company, its products, and personnel to the media;
  • publications: newsletters, brochures, reports, articles in newspapers and magazines and other materials that can be used as a means of influencing markets to promote goods;
  • sponsorship: provision of material and monetary assistance to support various events: sports, charitable and other significant for the public;
  • means of identification: application of the company logo, business cards, uniforms for staff, uniform office interior style, promotion of advertising materials about the enterprise, development of forms with its logo, etc.

The focus of propaganda is addressed to the following subjects:

  • consumers: to create a reliable business card for products (including environmental friendliness of the product) and the company’s reputation, using the method of holding public events, promotions, advertising in the media, etc.;
  • counterparties: for the growth of the trading network, attracting new customers and partners through organizing presentations, exhibitions, distributing advertising, etc. Through activities such as product presentation and contacting customers, the company can gain double benefits;
  • key journalists(radio, TV, Internet, press): for free promotion of information about new products, important events in the life of the company, using the method of holding press conferences, as well as distributing press releases, etc.;
  • state and municipal authorities and management: for participation in public social projects and sponsorship of cultural events, etc.

Propaganda activities are developed and implemented in several stages.

  1. Definition of tasks.
  2. Selection of means of communication.
  3. Organization of requests.
  4. Implementation of activities.
  5. Analysis of results.

One pattern can be identified: propaganda prevails over advertising at a high level of market monopolization. Otherwise, the commercial results of the first campaign will be less effective than the second campaign. In any case, propaganda loses to advertising in promoting goods.

Promotion method 4. Sales promotion

The use of certain means that are designed to stir up the interest of the target audience in response to various activities within the boundaries of marketing and communication strategies is called sales promotion. This is another tactic to revitalize the business process.

Sales promotion is a tool for short-term stimulation of the market, which is not able to guarantee either stable demand for products or attracting new regular consumers. But an entrepreneur can get results from such a maneuver much faster than from other methods of promoting a product.

Stimulation tools include: prospectuses, diagrams, presentations, posters, souvenirs, advertising inside product packaging, calendars, exhibitions, catalogs, stickers, tables, etc.

The focus of this sales activation tactic is addressed to the following subjects.

  • How to attract buyer attention: statistics on main channels

Subject

Target

Methods

Buyers

To purchase more goods

promotions aimed at promoting new products;

various competitions;

distribution of free samples (samples);

games, lotteries;

demonstration of products by the promoter;

loyalty programs (discount card, discount for repeat purchase, etc.).

Counterparties

To influence the number of transactions towards their increase

competent staff training;

provision of promotional materials and appropriate equipment for trade;

provision of information, legal and other services;

implementation of a competition based on sales results.

Sales staff

to motivate employees to actively attract customers, as well as to improve the quality of service

financial motivation in the form of bonuses and bonus payments;

moral encouragement in the form of awards with certificates and thanks;

holding competitions among sales managers;

payment for travel packages for employees who do not have any comments from the company administration;

conducting training, retraining, advanced training, and treatment of employees at the expense of the enterprise.

12 product promotion techniques that will increase even “dead” sales

Are you already using additional and cross-selling, regularly holding promotions, offering “locomotive” products, but the average check is not growing? Try to implement non-trivial techniques, which will attract the attention of even indifferent customers and motivate them to purchase. You will learn them from the article in the electronic magazine “Commercial Director”.

What determines the methods used to promote a company’s product?

  1. Promotion campaign goals

The impact of promotion goals on the methods selected can be as follows. If an enterprise is faced with the task of generating information about new products, then priority should be given to advertising over other types of marketing.

If the goal is to convey the detailed characteristics of a product of long-term use, then it is preferable to use personal selling and the sales promotion method to additionally attract customers to retail outlets; advertising should be used in moderation.

  1. Characteristics of the target market

The choice of methods for promoting goods is influenced by the prevalence of the enterprise’s economic relations, as well as their geographical and socio-economic characteristics. If the market is small, then it is better to choose personal selling as a sales method. If products are sold within a limited region, then your method of promoting the product is local media. If on a national scale - national mass media.

  1. Product characteristics

The promotion method is also influenced by the characteristics of the product. To promote technical products, it is better to use personal selling; products intended for mass buyers - advertising campaigns; seasonal products - enhanced sales and sales promotion techniques.

It is sometimes impractical to have a full staff of sales managers throughout the calendar year, since it is not always necessary to use the personal selling method.

  1. Product life cycle stage

The choice of methods for promoting a product depends on what stage of the life cycle a particular product is at. It is good to accompany the stage of introducing a new technical product to the market with personal sales and sales promotion, and for everyday items - with advertising campaigns.

At the stage of stagnation, marketers, as a rule, reduce activities to promote old products. Communication information blocks are no longer as effective a tool as they were at the time the product was introduced. In this case, it is better to use the direct sales method and sales promotion.

  1. Price

The cost of goods has a significant impact on the choice of promotion method. Increasing personal sales will require products with a high price, and for inexpensive products the tactic of using advertising is perfect.

  1. Possibility of using the method

The choice of using one or another method of promoting a product depends on how it reaches the target audience. For example, at the state level there may be a ban on advertising of a particular product (alcohol, tobacco). The problem worsens when promoting goods for export.

Effective modern methods of promoting goods and services

Promotion method 1. BTL events

The concept below the line (from English - “under the line”) carries a full range of practical activities. The term arose by chance: the director of an American company had to approve a budget for an advertising campaign, which included classic information in the media.

The manager considered that such events would not be enough and, under the existing costs, added by hand additional costs for the distribution of free product samples, promotional coupons for participation in competitions and receiving gifts.

In modern reality, the buyer enjoys having a wide range of options when purchasing the things he needs, as he has unlimited access to a wide range of goods and services. For a person, the opportunity to choose, satisfy needs, personal positioning, and the need to participate in the creation of new public goods are important.

If the manufacturer’s target audience consists of similar buyers, then each time it becomes more and more difficult to develop an effectively sold product. That is why new methods play an important role when promoting a product in order to ensure consumer loyalty. After all, they guarantee that a unique product will reach a specific buyer. BTL services have all of the above qualities, and therefore they are actively developing in the Russian Federation.

The main tools used in the BTL field:

  • competition - a procedure for promoting a product, as a result of which buyers perform a specific task, show their knowledge and skills in order to win a competition prize;
  • presentation - presenting a product with a demonstration of its characteristics and specifics;
  • tasting - providing an opportunity for future consumers to taste the product;
  • distribution of advertising and information materials (flyers, discount coupons) - offering special tools to stimulate sales or advertising at retail outlets, which would allow active sales of the promoted product directly in the store.
  • sampling - distribution of samples (samples) of the advertised product;
  • lottery - an event during which a winner is randomly determined;
  • premium (present for purchasing a product) - promotion of products through the introduction of a special offer.

Promotion method 2. Telemarketing

One of the new methods of product promotion, used in addition to advertising or direct sales, can be used both as programs for searching information and for distributing it. This method performs the following tasks:

  • networking with regular customers ;
  • highlighting real “hints” from publicly available mailing lists;
  • direct sales to future buyers by telephone;
  • using relationships for the production of a new product;
  • hosting an event after implementing direct sales programs;
  • further work with sales leads who were attracted through advertisements, direct sales events or through intermediaries;
  • establishing contacts with customers within the boundaries of the relationship marketing program;
  • Attracting Reluctant Consumers through offering them new products that arouse their interest;
  • conducting marketing research, and the use of various surveys and surveys to further evaluate customer reactions to new products.

Based on this method of product promotion, it is possible to obtain a variety of information from participants, analyze it, and also use information bases for the development and implementation of further marketing programs.

Promotion method 3. Event marketing

This is a set of implemented measures to support the image of the enterprise and the product produced, to promote the brand through unforgettable and exciting events. That is, through certain actions, an enterprise comes into contact with its customers, which, in turn, creates a favorable image of the company and consumer interest. Types of event marketing activities are presented below.

  • Special Events(special events): advertising tours, festivals, sports competitions, organization of city holidays, awards, promotions for the media. Such events are favorable for creating the company’s image, as well as for building the reliability of the brand. As a rule, after a successful event, a positive response from the target audience follows in the form of increased loyalty to the company and a pronounced interest in the product produced by regular and potential buyers.
  • Events for partners, dealers and distributors(trade events). Such events are both business and entertainment in nature, for example: presentation, round table, reception, seminar, congress, conference, forum. The purpose of such actions is to clearly demonstrate the positive qualities of products, convey the latest goods or services to consumers, exchange experiences, find new partners, etc.
  • Corporate events(corporate events): celebration of state and professional holidays, company anniversary, employee birthdays, joint weekend with the team. Such events allow the director of an enterprise to become a more authoritative and respected leader for his subordinates, to effectively convey the ideas of the company administration to each employee, and to show the care and attention of management to the staff.

Promotion method 4. Children's marketing

Children have long been recognized as full-fledged and special consumers, and, as a result, such a method of product promotion as children's marketing has emerged. To develop such strategies aimed at the audience of the younger generation, it is necessary to deeply study its specifics.

A manufacturer of children's products must focus on the needs of schoolchildren and younger children, as well as on the perception of the world through the eyes of a small person. For such marketing, it is important not only the quality and appearance of the product, but also the packaging, as well as the methods used to promote and distribute the product.

Children's needs change as the child grows psychologically and physiologically. This category of the population gives an instant reaction to any social changes; marketers successfully use this feature when developing and promoting children's products. Let's look at why the younger generation is an extremely attractive target audience for marketing:

  • children are very emotional when buying goods that are interesting to them, they easily say goodbye to money;
  • Children often manage their pocket money independently;
  • children have influence on their parents, who buy many items for them;
  • a child, as a rule, remains interested in a certain brand of a product for a long time;
  • Children spend a lot of time watching TV, and therefore advertising.

The children's audience is often represented not by buyers, but by users. Products for children are purchased by elders, but the role of the child in making purchasing decisions is significant. Parents listen to the child’s wishes and provide assistance in choosing a particular brand. As a result, when the final decision to purchase a children's product is voiced by a child, it is made under the influence of the opinions of adults. Manufacturers and trading companies that rely on children's marketing must understand this.

Promotion method 5. Promotions

To become more famous, companies organize various show programs and presentations, sponsor socially beneficial events, city holidays, competitions, festivals, where they widely conduct advertising campaigns and distribute free product samples.

The manufacturer is interested in a quick response from the consumer to actions to stimulate the sale of a new product. Today, promotions are the most effective method of promoting a product; it is not surprising that the number of advertising events has increased.

It is important not just to show the buyer a new product, you need to do it brightly, boldly, and with high quality. Such advertising campaigns should be approached responsibly; it is necessary to purchase materials, arrange transport support, order souvenirs, invite the media to view the event, prepare price lists, catalogues, brochures, leaflets, business cards, invitation cards, etc. in advance.

Decide which staff will actively offer your product to customers. Promoters are specialists who advertise products and must have cultural communication skills with potential consumers. The activity of product promotion directly depends on their professionalism.

Promotion method 6. Merchandising

Merchandising refers to new methods of promoting goods. Techniques of this kind can completely replace a regular salesperson. This technique attracts the buyer to the product directly at the point of sale.

The main goal of merchandising is to make products easily accessible and attractive, as well as to simplify the procedure for purchasing them. The functions of the method are:

  • monitoring the availability of goods on the shelves of retail outlets, taking into account the popularity of certain items;
  • organizing sales points and supplying them with all necessary materials;
  • ensuring the display and location of products, i.e. presentation of specific products.

It is first necessary to create a commensurate stock of goods, and then they are placed in retail outlets in a certain assortment and volume. In merchandising, it is extremely important to correctly select and arrange promotional materials, such as:

  • price tags,
  • stands,
  • booklets,
  • coin boxes,
  • posters,
  • hanging and floor models of products.

Product display (exposition) is considered one of the most important merchandising methods.

Exhibition is the procedure for placing products on specialized retail equipment. If the product is displayed in places that catch the eye of a potential buyer, and the packaging of the items itself has a presentable appearance, then sales of such products grow quite quickly.

Promotion method 7. Packaging

The appearance of products should not be underestimated, as it plays a large communicative role in marketing.

Packaging is a kind of product shell, which is a progressive and independent form of promotion. It can be used as a tool to present and convey information sent through marketing communications. In modern reality, packaging is a significant means of influence through which the manufacturer communicates with customers.

Due to the fact that most retail outlets are focused on self-service, the role of the outer shell is large and has a significant impact on the degree of promotion of the product in the market. Packaging should attract the buyer to the product, convey its features and characteristics, assure the consumer of the quality of the product, create a good impression, etc.

An important role is played by increasing the income of buyers. If consumer wealth becomes higher, then the willingness to pay for quality, reliability, brand, convenience and, among other things, improved packaging also increases.

The manufacturer himself understands that good packaging helps in advertising the product and in brand recognition. A creative and innovative approach to packaging development also brings benefits to the manufacturer in promoting the product, and allows the company's designer to realize his creative ideas.

Promotion method 8. Film merchandising

When designing and developing packaging, the manufacturer often focuses on a particular movie or cartoon character, as well as on any items that are widely used by them. It is extremely effective to use film brands on the product market.

Against the backdrop of a certain figure of a character from a film, product promotion gives a certain advantage to the manufacturer. This reduces the cost of launching new products and significantly reduces the time to market for new products.

Due to the fact that screen characters are widely known and recognizable, consumers are quicker to remember brands that use film brands to promote their products.

An example of film merchandising (Hulk figure in a shopping mall, Bangkok)

Expert opinion

Features of promotion using event marketing

Sergey Knyazev,

general producer of the Knyazev group of companies, Moscow

When there is a need to increase sales throughout Russia, then you need to hold a mega-event in the capital of the country, which would cause a resonance in the federal media, or organize a series of events in the largest cities of Russia. The budget for measures to stimulate sales of products in the country will be 25-100 million rubles, for promoting goods in a specific region - 2-20 million rubles.

Main cost items: coordination of events with the city administration, finding a site for them, developing a script, technical support (lighting, sound, monitors, special effects, etc.), preparing props, costumes, scenery, inviting the media, artists, famous public figures people, etc. We must not forget about secondary expenses that depend on the specific theme of the action.

The result is not at all difficult to determine and record: set the sales level before and after the event. The results can be calculated both as a percentage and in units of goods sold. A good indicator are applications; estimate the number of orders for a product (service) before and after the event.

Carry out a survey of your company's sales representatives and dealers; they, like no one else, will see changes in the increase in demand for your product. For example, our company organized a fireworks festival in order to consolidate the Sharp brand in the market.

The festival attracted an audience of half a million, and various media outlets covered the event in their publications. After the holiday, held on a grand scale, many retail chains selling products from this manufacturer observed a sharp increase in sales of Sharp products. The result of this event lasted for quite a long time.

Basic methods of promoting goods on the Internet

  1. Creating your own website

Almost every company has its own web resource, the address of which it actively distributes on the Internet. On the website you can find a full amount of information about the work of the enterprise, prices for products or services, contact information, etc. Often a web resource is made in the form of an online store. Within its framework, a potential client is invited to choose one or another product, look at its declared characteristics, consumer reviews, and buy products with home delivery. Modern websites are equipped with a service for ordering a call back.

  1. SEO optimization

SEO optimization is a set of actions that are used to increase the ranking of a company’s website when its content is indexed by well-known search engines such as Google, Yandex, Rambler and others. The goal of this technique is to increase the number of visits to the company’s website and, accordingly, the number of future buyers.

  1. Banner advertising

Banner and contextual advertising is a fairly effective method of promoting a product on the Internet. An advertisement in the form of a banner, i.e. a graphic drawing with a link to a company’s web page, placed on resources with a large number of visitors, is extremely effective for promoting a product.

Such popular and active sites, in addition to delivering useful content to people, are large advertising platforms used by various companies to promote their products. Such information attracts potential consumers, arouses interest in a new unique product, thereby provoking them to purchase it.

  1. contextual advertising

This type of advertising is also widely used to promote a product. It works effectively and quite simply: information about your company or new product is displayed on specialized sites whose target audience coincides with the topic of the advertised product.

  1. Viral Marketing

Viral marketing is the active dissemination of the information you need via the Internet. In a couple of hours, a huge number of users can learn about your product or a planned company event. This method of product promotion is widely used by entrepreneurs.

The effectiveness of this technique does not need to be proven. The main advantage of the method: the absence of monetary costs, since the information goes to the people without the involvement of specialized advertising agencies. A person who receives such an advertisement is predisposed towards it favorably due to the fact that it came from the same user.

  1. Social media

SMM promotion is an excellent method of popularizing a product on social networks. These Internet platforms contain a huge number of users, therefore, by advertising itself and its products using SMM, the company will definitely find a target audience that will increase its sales of certain products. You can do social media marketing for a long time and for free.

  1. E-mail newsletter

E-mail mailing is also a popular and effective method of product promotion. Messages advertising the product are sent to the email addresses of Internet users. Such emails contain information about planned events, competitions, discounts, promotions, bonuses, etc.

Companies using this method of product promotion should not forget that users must first agree to receive such mailings.

  • How to avoid getting into spam: 10 secrets of competent e-mail marketing

Expert opinion

Free advertising may be better than paid advertising

Kirill Redin,

General Director of the trading and production company "Octopus-DV", Khabarovsk

In 2011, our company developed high-quality selling texts and distributed them on such free advertising platforms as “From Hand to Hand”, “Price Pulse”, “Goods and Services”, etc. Sales increased 3-4 times, which amounted to about thirty doors per month. During this experimental period we did not advertise other than in free publications.

Previously, we searched for buyers in the chats of construction sites, where users shared with each other successes and failures in repairs, choice of materials, evaluation of brands, etc. The manager of our company began a correspondence and talked about high-quality inexpensive doors that he installed at home . By entering into similar dialogues on 25–30 specialized sites, we managed to sell 4–8 doors in a week.

Flaws. Time costs. At least one supervisor is required.

What are the methods of promoting a product to the market at minimal cost?

Method 1. Exhibitions

A great way to advertise your company among competitors and consumers is to participate in an exhibition. To do this, you don’t need to rent an expensive site or set up a stand. Think about how you can take part in the exhibition creatively and effectively, while getting the maximum amount of information on potential partners and clients, and also making yourself known.

Carefully review the invitation of the exhibition organizers and its location, look for a low-budget way to demonstrate your activities. It is enough to simply place the company name in the event catalog or on the website. You can rent a couple of square meters at the entrance to the exhibition, hire a teenager who will hand out tasty or healthy little things, accompanying them with business cards with your company’s contact information.

Method 2: Press releases

A good method of promoting a product would be to issue weekly press releases about the work of your company. You shouldn’t make them very voluminous; half an A4 sheet of text is enough, accompanied by a few key phrases about the company.

Informative reasons for press releases about the company must be sought throughout the week. Organize a data collection and processing scheme. Post articles about the company in all possible ways: websites, corporate publication for regular consumers, newsletters, advertisements in the sales area, etc.

You can register your message for free in press release directories. Actively distribute company news to various publications in your area, both print (newspapers, magazines) and online media.

Method 3. Cases

Cases are called success-story or case-study, they differ from each other in nature, but the essence is the same - to demonstrate to people in your target audience a specific example of solving their difficulties. It is better to write the narrative according to the following schemes: “problems solutions effectiveness", "unsatisfactory BEFORE great AFTER.” Such stories are interesting to users.

Plots should not be presented automatically and dryly; they should be humanized. You need to write stories in simple language, imagine that you are addressing the story to your friend. The main thing in such narratives is not to set the goal of increasing sales, you simply report some events and show how you got out of a particular situation, while another person is suffering. In this case, you do not impose information, you share it with her.

Method 4. Reviews

It is imperative to collect feedback from your customers from the moment you first start doing business. If your client is a well-known company, then use them as an example in your advertising campaigns.

In order for the finished product from the manufacturer to reach the end consumer, it takes some effort and a certain amount of time. All this is called distribution of goods and is carried out through so-called distribution channels.

Distribution channel is a set of legal entities and individuals who perform actions and incur costs associated with the movement of goods from the manufacturer to the final consumer. The choice of distribution channel can have a major impact on a manufacturer's success. Therefore, issues of organizing the sale of goods and, in particular, the choice of distribution channel are always the subject of careful development by the manufacturer and form the essence of it sales policy, that is, a set of actions of the manufacturer that ensures the effective movement of goods to the final consumer and their sale. There are three main types of sales policies based on the choice of distribution channel and implementation method:

· extensive distribution, which consists of placing and selling products in any retail trade enterprise that is ready to do this; this distribution is suitable for simple, small and inexpensive products of mass demand (food, detergents, finishing materials, stationery, etc.);

· exclusive distribution, which consists of selecting a single distributor in a given geographic area; this distribution is suitable for products that are either unique and expensive, or products that are manufactured only to order (mainly industrial projects and industrial equipment);

· sampling distribution, which consists of cooperation with several retail enterprises that receive the exclusive right to sell products in a given geographic territory, but unlike the previous case, are forced to compete with each other; This distribution is suitable for expensive, branded products that require certain maintenance (cars and tractors, machine tools, etc.).

In general, the distribution of goods is influenced by many factors and the distribution channel must function taking them into account. As a rule, the following factors significantly influence:

· type of product and conditions of its use;

· services that should accompany the process of its acquisition by buyers;

· frequency of purchases;

· time spent by the buyer on each purchase;

· number of potential buyers in a given territory;

· the size of the territory where distribution of goods is planned;

· concentration of buyers at points of sale;

· presence of competitors (which ones, how many);



· transport support for delivery of goods.

Distribution channel participants perform a number of important functions, without which providing goods to consumers would be very difficult:

1. Researching on information support of goods distribution processes, which allows them to be planned and optimized.

2. Sales promotion through the creation and dissemination of positive information about the product.

3. Establishing and maintaining long-term contacts with potential buyers.

4. Adaptation, adjustment of goods according to customer requirements (sorting, batch formation, installation, packing and packing, color, design, etc.).

5. Conduct of negotiations according to the terms of delivery (coordination of prices, batch volumes, terms, methods of transportation, terms of payment, etc.).

6. Organization of product distribution(see below).

7. Financing– covering the costs of operating the channel.

8. Taking risks related to the functioning of the channel (financial, commercial, transport, etc.).

Obviously, the implementation of the first five functions contributes to the conclusion of transactions, and the remaining three - the completion of already concluded transactions.

All of the above distribution channel functions have three common properties:

· they absorb resources;

· can be performed better due to specialization and unification;

· can be executed by different channel participants in parallel.

If some of them are performed by the manufacturer, then his costs rise accordingly and selling prices should be higher. When transferring some functions to intermediaries, costs and, accordingly, manufacturer prices are reduced. However, intermediaries must charge additional fees to buyers to cover their costs of organizing the work.

The distribution channel is characterized by such a parameter as its level. Distribution channel level determined by the number of intermediaries that stand between the manufacturer and the end consumer. For example, if a consumer purchases a product directly from the manufacturer, that is, there are no intermediaries at all, then there is a zero-level distribution channel or a direct distribution channel. If a manufacturer sells its product for sale to a retail store, where it is purchased by a consumer, then there is a first-level channel. If a manufacturer first sells its product to a wholesale intermediary, who in turn distributes the product to retail stores where the consumer purchases it, then a second-level channel occurs, and so on. Channels of the first, second and subsequent levels are called indirect distribution channels.

Product distribution– the process of physical movement of goods from the manufacturer to the final consumer. Obviously, all participants in the distribution channel are involved in the distribution of goods. The distribution of goods includes the following groups of processes:

· receiving and processing orders (approximately 3% of the total costs of product distribution);

· formation of consignments of goods, their packaging and containerization (approximately 5% of the total costs of goods distribution);

· receipt and shipment of goods (approximately 6% of the total costs of goods distribution);

· warehousing (approximately 26% of total distribution costs);

· maintaining guarantee stocks in warehouses (approximately 10% of the total costs of product distribution);

· transportation of goods (approximately 46% of the total costs of goods distribution);

· product distribution management and reporting (approximately 4% of the total costs for product distribution).

Summary

In business practice, immediately after the creation of a small and medium-sized business, problems inevitably arise associated with the organization of accounting and tax accounting, as well as with insufficient awareness of citizens and legal entities regarding. In this regard, it is advisable to create a consulting center for the provision of accounting and legal services, aimed at a wide range of consumers.

High-quality service is expected, guaranteed by the presence of highly qualified specialists and an individual approach to each client.

The purpose of creating an organization is to make a profit, gain and maintain its market share.

The initial costs for opening the center will be …. rubles that will be invested by the founders.

Founders of the enterprise:

The payback period of the project will be …. (from the date of commencement of work). For the first year, the net profit will be equal to rubles. Monthly costs will be rubles.

Description of services

The company's specialists will provide consulting support in the form of one-time consultations or subscription services on issues of accounting, taxation, and law. Service list:

Accounting and tax accounting;

Consulting on taxation, law and accounting;

- filling out tax returns for individuals. individuals and organizations, submission and protection of reports to the tax authorities;

Registration of legal entities and individual entrepreneurs;

Submission of zero reporting;

Drawing up applications and letters for the Federal Tax Service;

Liquidation of IP, LLC.

Advantages and disadvantages compared to competitors are presented in Table 1:



Table 1

The location of the company and all its closest competitors is presented on the map (Appendix 1).

To work with a client, it is necessary to conclude an Agreement for the provision of accounting services, which specifies the rights and obligations of the parties, the cost of services and the payment procedure, the procedure for delivery and acceptance of services, the responsibility of the parties, dispute resolution, validity period, procedure for changing and terminating the contract, other provisions. (Appendix 2.)

Prices for the services provided are shown in Table 2:

Service Price, rub.)
Accounting statements 1. Balance sheet for the quarter 2. Profit and loss statement 3. Monthly service depending on the volume of document flow (for individual entrepreneurs) 4. Monthly service depending on the volume of document flow (for legal entities) 5. Zero reporting 400 (1 page) 800-4700 8800-50000 2000-4000
Tax reporting 1. Unified (simplified) tax return 2. Tax return for a single tax paid in connection with the application of a simplified taxation system 3. Tax return for a single tax on imputed income for certain types of activities 4. Tax return for VAT 5. Notification of using the right to exemption from VAT 6. Tax return for personal income tax (form 3-NDFL) 7. Tax return for personal income tax (form 4-NDFL) 8. Certificate of income of an individual (2 -NDFL) 9. Application for a property deduction, etc. 10. Notice of the creation (reorganization, liquidation, closure) of a legal entity. persons or individual entrepreneurs 11. Notice of opening a current account 100-350 250-400
Legal services 1. Preparation of documents for opening an individual entrepreneur or LLC. 2. Registration of individual entrepreneur, LLC. 3. Liquidation of individual entrepreneur, LLC. 200 rub./doc 2000/3000 rub. 5000/30000 rub.
Consultations: 1. Tax consulting 2. Accounting consulting 3. Legal consulting 350 (1 hour) 350 (1 hour) 400 (1 hour)

table 2

Market analysis

Today in Perm there are 230¹ firms offering accounting services.

Share of consulting centers (accounting firms) by districts of Perm

Potential clients: individuals and legal entities (small and medium businesses).


¹Data on the number of firms is presented according to Double-GIS.

²Data presented by the Department of the Federal Tax Service for the Perm Territory (2013).

Competitor analysis

Currently, the company's main competitors are the accounting companies M-Profit, Megalit, and Aste-M. The choice of these companies is determined by geography (they are located in the city center, in the Leninsky district). Characteristics and analysis of the main competitors in the provision of accounting and legal services are presented in Table No. 3.

Table 3

Marketing plan

The organization's market penetration strategy:

1. Selecting a product distribution system.

Choosing a product distribution system


(Direct sales)

Pricing Method

The organization uses a price-to-competitors strategy. At the same time, the price fully reflects costs, demand and competitiveness of services. The company's pricing policy is consistent with the goal of attracting a wide range of clients.

Over time, it is planned to introduce a system of flexible discounts, cooperation with business centers, feedback from clients, and provision of handouts for clients on specific topics of interest to them. Also, the attention of consumers will be attracted through personal contacts through participation in exhibitions, fairs, and visits to business seminars. Every month it is planned to conduct monthly monitoring of marketing activities by tracking indicators such as:

2. Total number of clients per month.

3. Cost of attracting 1 client.

4. How much does 1 client bring from 1 acquisition channel?

At the end of each reporting period, identify ineffective channels and replace them with others, thereby maintaining the effectiveness of marketing activities.

Marketing budget

Events How it is implemented in the company Provider Expenses
Distribution of advertising letters of offer Carried out 2 times a month through social media. networks and e-mail. - -
Advertisements in newspapers "Pochto-Ring", "Va Bank", "Komsomolskaya Pravda" -
Publishing brochures One-time distribution of brochures by promoters Central Printing House (1500 pcs.)
Advertisements on the street 1 time per month (printed independently) at bus stops, houses, shops and shopping centers in the Leninsky district. - -
Business cards - Central Printing House (150 pcs.)
Placing advertisements on the Internet Post monthly on the free notice board (Avito, properm.ru/doska, do.prm.ru) - -
Advertising in transport Routes: 10,11,14,41,32,68 Central Printing House (20 pcs.)
Website Creation of a website with a convenient and clear interface that attracts attention, where all the necessary information for clients and partners will be placed. - -
Page on social networks Creation of a page on a social network for the purpose of quick and effective contact with clients, which will also provide all the necessary information. - -
Total:

Personnel plan

For the effective operation of the company, it is planned to form a professional team of highly qualified specialists:

Job title Requirements Functions
Director - higher education; - Experience from 2 years; - responsibility, initiative, communication skills. External and internal organizational activities: - recruitment; - image development; - representative functions; - interaction with partners; - advise clients on the company’s services; - calling the existing client base; - answer incoming calls.
Accountant - age from 28 – 60; - higher economic education; - work experience of 3 years; - responsibility, organization, attentiveness, communication skills. - maintaining accounting and tax reporting; - consulting clients on accounting and taxation.
Lawyer - age from 28-60; - higher legal education; - work experience of 5 years; - responsibility, organization, attentiveness, communication skills. - preparation of documents for registration and liquidation of LLC, individual entrepreneur; - advising clients on legal issues.

Payroll calculation

Staff work schedule

This schedule does not contradict labor laws. The director's working day may be free.

Legal plan

The legal form of the business being organized - a limited liability company will be registered in accordance with the procedure for state registration of LLC, which is determined by Federal Law No. 14-FZ dated 02/08/1998 “On Limited Liability Companies” and the Law “On State Registration of Legal Entities and Individual Entrepreneurs” (Federal Law No. 129-FZ).

This legal form was chosen due to a number of advantages:

The participants of an LLC are not liable for its debts and obligations with their property;

The charter of an LLC may provide for restrictions on the admission of new participants into the company, as well as on the alienation of participants’ shares to third parties;

Bear only the risk of loss;

In the event of bankruptcy, if the company's property is not enough to pay off its debts, the founder will be obliged to pay creditors only an amount that will not exceed the authorized capital.

The following documents will be provided for state registration:

Completed form P11001;

Articles of association;

Foundation Agreement;

Minutes of the general meeting of founders;

Document confirming payment of the state fee for LLC registration;

Documents for the legal address in the form of a letter of guarantee from the owner.

The simplified taxation system (Simplified Taxation System) was chosen as the taxation system. Under this taxation system, an organization is exempt from such types of taxes as:

Income tax;

Organizational property tax.

This will allow the organization to reduce its costs during the first time of its existence.

The object of taxation is chosen: “Income - Expenses”.

The transition to the simplified taxation system is carried out at the time of filing documents for registration of an LLC with an application form No. 26.2-1 attached.

After submitting documents for registration, the LLC will be registered within 5 working days and the Federal Tax Service will issue a package of documents: state certificate. registration, registered Charter, Certificate of registration, extract from the Unified State Register of Legal Entities, notification from the Pension Fund and Rosstat.

After issuing the package of documents, you must place an order for printing for the LLC. You can order a seal from any company that produces seals and stamps. Upon acceptance of an order for the production of a seal, the following will be provided:

TIN certificate;

Certificate from the Unified State Register of Legal Entities;

Passport.

Print production time is from 1 to 3 working days. The cost of round printing is from 500 to 1500 rubles. depending on the quality of the equipment.

Opening a current account at JSC VTB Bank

Required documents:

Statement;

A copy of the state certificate registration of a legal entity;

Articles of association;

A copy of the license;

Card with samples of signatures and seal impressions;

Copies of documents confirming the powers of persons;

A copy of the Certificate of registration with the tax authority of a legal entity;

An extract from the Unified State Register of Legal Entities or a copy thereof;

A copy of the document confirming its presence in the Unified State Register of Enterprises and Organizations (USRPO);

A copy of the identity document of the person authorized to sign 1 or 2 times;

Bank account agreement;

- Information about the Client.

The account will be opened within 3-5 calendar days from the date of submission of all necessary documents. The cost of this service is 1100 rubles.

Approximate costs for registering an LLC are given in

table No. 4:

Table No. 4

Production plan

At the initial stage, it is planned to rent premises in the city center, located on the street. Permskaya, 34 with a total area of ​​20 sq.m. on the first floor of an office building. The location of the consultation center is presented below.

The rented area is in good condition and does not require repairs.

The premises have:

Desk (2 pcs.)

Chair (4 pcs.)

Wardrobe (2 pcs.)

To work, you need to purchase the following fixed assets:

No. Name Quantity (pcs) Price, rub) Provider Deadlines (days) Total (RUB)
Computer "El Dorado"
Laptop "El Dorado"
Printer "El Dorado"
Fax "El Dorado"
Landline telephone "El Dorado"
Calculator "El Dorado"
Table lamp "El Dorado"
USB flash drive "El Dorado"
Water cooler "Aqua-service"
Trash can "Office Planet"
TOTAL:

Production plan

Calculation of the total cost of the service

Index 1m. 2 m. 3m. I quarter 4 m. 5 m. 6 m. II quarter 7 m. 8 m. 9 m. III quarter 10 m. 11 m. 12 m. IV quarter Total:
Wage
Social Security contributions
Depreciation*:
Fixed assets:
- computer 1641,5 1641,5 1641,5 4924,5 1641,5 1641,5 1641,5 4924,5 1641,5 1641,5 1641,5 4924,5 1641,5 1641,5 1641,5 4924,5
- laptop 1090,8 1090,8 1090,8 3272,3 1090,8 1090,8 1090,8 3272,3 1090,8 1090,8 1090,8 3272,3 1090,8 1090,8 1090,8 3272,3
- water cooler
- Printer 631,5 631,5 631,5 1894,5 631,5 631,5 631,5 1894,5 631,5 631,5 631,5 1894,5 631,5 631,5 631,5 1894,5
- Fax 299,1 299,1 299,1 897,3 299,1 299,1 299,1 897,3 299,1 299,1 299,1 897,3 299,1 299,1 299,1 897,3
- telephone 148,3 148,3 148,3 444,9 148,3 148,3 148,3 444,9 148,3 148,3 148,3 444,9 148,3 148,3 148,3 444,9
- calculator
- table lamp
- USB flash drive 39,8 39,8 39,8 119,4 39,8 39,8 39,8 119,4 39,8 39,8 39,8 119,4 39,8 39,8 39,8 119,4
- trash can
Intangible assets:
-Operating system "Microsoft Windows" SPK
-Consultant Accountant 833,3 833,3 833,3 833,3 833,3 833,3 833,3 833,3 833,3 833,3 833,3 833,3
-Consultant Lawyer 633,3 633,3 633,3 633,3 633,3 633,3 633,3 633,3 633,3 633,3 633,3 633,3
- Windows Server CAL Rus license
- Program 1C version 7.7
- SBIS+ software
- ESET Antivirus for 2 users
Other including:
- rent
- stationery costs
- marketing costs
- Refilling cartridges 66,7 66,7 66,7 66,7 66,7 66,7 66,7 66,7 66,7 66,7 66,7 66,7
- communication services
- Internet
Total:

Financial plan

Initial costs for opening a counseling center (Table 6).

Retail.

Retail trade includes all business activities associated with the sale of goods and services to final consumers for personal, family or household use. This is the final stage of distribution channels. Manufacturers, importers and wholesalers act as retailers when they sell products directly to end consumers.

In general, retail has four different functions. She participates in the sorting process, collecting a range of goods and services from a large number of suppliers and offering them for sale; The breadth and depth of the assortment depends on the strategy of a particular retailer. He provides information to consumers through advertising, display windows and signs, as well as personnel; assists other distribution channel participants in marketing research; stores goods, sets prices for them, places them in retail premises and carries out other operations with goods; usually pays suppliers for products before they are sold to end consumers; completes transactions, using appropriate store locations and opening hours, credit policies and other services (such as delivery).

Retail trade deals with two broad categories of suppliers - those who sell goods or services for use by the trade and those who sell what will be resold.

Suppliers must understand the retailer's goals, strategies and business practices in order to serve it successfully. Often retailers and their suppliers have different points of view that must be reconciled.

Retailing can be classified by ownership, store strategy structure and non-store trading. Within one classification, a retail store can fall into several categories at once. Retail analysis provides information about its qualities, relative size and importance, various strategies and the impact of external factors.

Classification by forms of ownership.

Independent Retailer has only one store and offers personal service, convenient location and direct contact with the consumer. Almost 80% of all retail organizations are independent, including many hair salons, dry cleaners, furniture stores, gas stations and auto service stations, etc. There are so many of them because this activity is easy to start, often requiring little investment and low qualifications.

Chain. Involves joint ownership of a number of retail outlets. It typically uses a centralized purchasing and decision-making system. While independent traders have a simple organization, networks are characterized by specialization, standardization and complex management systems. As a result, they can serve a large, dispersed market and maintain a well-known brand name.

Retail franchises represent contractual agreements between a manufacturer, a wholesale or service organization, and retail outlets. They allow the latter to carry out certain business activities under a well-known brand and in accordance with a specific set of rules.

Rented department is a department in a retail store (usually a department store, specialty store, or discount store) that is rented to a third party. The manager of the rental department is responsible for all aspects of its operations and pays a share of sales in the form of rent.

Cooperative created by retailers or consumers. In the first case, independent retailers have joint purchasing and transport services, warehouses, joint advertising, planning and other functions.

It should be noted that recently there have been a number of trends characteristic of retail trade:

The country's aging population, changes in population structure and saturation of many major markets are forcing retailers to seek new strategies.

Consumer interest in the quality of goods and level of service is growing.

More and more retailers are concerned about reducing costs.

Widespread use of the latest scientific and technical achievements, and first of all, the latest computer technologies.

Wholesale.

Wholesale trade includes any activity of selling goods or services to those who purchase them for resale or professional use.

Wholesalers differ from retailers in a number of ways. First, the wholesaler pays less attention to the incentive, atmosphere and location of his sales establishment, since he deals primarily with professional clients rather than with end consumers. Secondly, wholesale transactions are usually larger in volume than retail transactions, and the wholesaler's trading area is usually larger than that of the retailer. Third, with regard to legal regulations and taxes, the government approaches wholesalers and retailers from different perspectives.

Wholesalers are used when they can be used to more effectively perform one or more of the following functions:

Sales and its promotion. Wholesalers have a sales force that helps a manufacturer reach many small customers at a relatively low cost. The wholesaler has more business contacts, and often the buyer trusts him more than some distant manufacturer.

Purchasing and formation of product assortment. The wholesaler is able to select products and create the necessary product range, thus saving the client from significant hassle.

Breaking down large quantities of goods into small ones. Wholesalers provide customers with cost savings by purchasing goods by the carload and breaking large quantities into small ones.

Warehousing. Wholesalers store inventory, thereby helping to reduce related costs for suppliers and consumers.

Transportation. Wholesalers provide faster delivery of goods because they are closer to customers than manufacturers.

Financing. Wholesalers finance their customers by providing them with credit, and at the same time finance their suppliers by issuing orders in advance and paying bills on time.

Taking risks. By taking ownership of the product and bearing the costs of theft, damage, deterioration and obsolescence, wholesalers assume some of the risk.

Providing market information. Wholesalers provide their suppliers and customers with information about the activities of competitors, new products, price dynamics, etc.

Management and consulting services. A wholesaler often helps retailers improve their operations by training their salespeople, participating in store layout and display design, and setting up accounting and inventory management systems.

In recent years, the growth of wholesale trade has been facilitated by several significant trends in the economy: 1) the growth of mass production in large enterprises remote from the main users of finished products; 2) increasing production volumes for future use, and not to fulfill specific orders already received; 3) an increase in the number of layers of intermediate producers and users; and 4) an increased need to tailor products to the needs of intermediate and final users in terms of quantity, packaging and variety.

Wholesale trade includes any activity of selling goods or services to those who purchase them for resale or professional use. Wholesalers help manufacturers efficiently deliver products to a variety of retailers and industrial customers throughout the country. Wholesalers perform many different functions, including sales and promotion activities, purchasing and product assortment, breaking down large quantities into small quantities, warehousing, transportation, financing, risk taking, providing market information and management and consulting services. All wholesalers can be divided into four groups. Wholesalers-merchants acquire ownership of the goods. They can be further divided into full-service wholesalers (wholesalers, distributors of industrial goods) and limited-service wholesalers (cash wholesalers, traveling wholesalers, organizing wholesalers, consigning wholesalers, agricultural production cooperatives and parcel wholesalers). Agents and brokers do not acquire ownership of the product, but receive a commission for facilitating the purchase and sale. Wholesale branches and manufacturers' offices are divisions of companies that are not wholesalers, divisions created in order to do without the services of professional wholesalers. Various specialized wholesalers include agricultural wholesalers, wholesale oil depots, and wholesale auctioneers. Wholesale trade is an independent branch of the economy. Forward-thinking wholesalers are constantly tailoring their services to the specific needs of target consumers and looking for ways and means to reduce the costs of doing business.