Benefits Of Marketing Research To Wholesalers:
MR is beneficial to wholesalers in the following areas of their business:
(1) Location of business establishment: Every wholesaler has to locate his business establishment at a convenient place. Location includes location of main office, branches, warehouses and so on. The cost of marketing will be low if the location is optimum. Here, researchers undertake a survey of available convenient places and suggest the convenient places for locating business establishments. Thus, for selection of convenient location, locational survey is useful.
(2) Selection of sales territory: Every wholesaler has to select promising area for his business. This selection is important as turnover and profit are related to the sales territory selected. For such selection, the features of product to be distributed, market demand of different areas, purchasing capacity of customers, possible increase in demand in future, possible benefits of sales promotion measures, etc. need to be taken into consideration. Researchers undertake surveys of different trading areas and suggest the best trading area to the wholesaler.
(3) Reduction of distribution/marketing cost: Every wholesaler will like to reduce the cost of distribution as his net profit is closely linked with the cost of distribution. This cost includes expenditure on advertising, services to retailers, discount and credit facilities offered, arrangement for delivery of goods to retailers and so on. Such distribution cost needs periodical review in order to check wastage and liberal expenditure on distribution. Reducing distribution cost is difficult due to market competition but efforts should be made in this regard with the help of experts i.e. researchers. They suggest ways and means to bring down the cost of distribution without any adverse effect on total sales.
(4) Decision on number of commodities for distribution: Every wholesaler has to decide the number of product lines he can handle efficiently. He has to decide the number of items that he can distribute effectively. Sometimes, marketing of limited items with good demand may be profitable. Similarly, stocking of different items may prove to be costly. In addition, every wholesaler has to consider his financial position, manpower available and storage facilities available while deciding the number of items for the business. Marketing researcher can study all relevant facts and offer suitable guidance to the wholesaler in this regard.
(5) Storage and handling of goods: Every wholesaler has to maintain adequate stocks for smooth and regular supply of goods to retailers. Naturally, he has to give attention to storage, handling and transportation of goods. He has to conduct these activities economically. The wholesaler can undertake studies in these areas in order to find out ways and means for handling these activities speedily and economically. For this, research studies are useful.
(6) Miscellaneous benefits to wholesalers: Marketing research is also useful to wholesalers while dealing with other aspects of marketing. They include cost-profit analysis, stock handling and delivery procedure, credit recoveries, incentives to retailers for their loyalty, sales promotion measures and so on.
In short, MR offers guidance to wholesalers while dealing with their problems and difficulties. It is useful for the expansion of business and also for raising the margin of profit in the business. Wholesalers can undertake such research directly by making suitable internal arrangements. They can even study the published material and use it for the benefit of their business operations. Many wholesalers do not conduct their own research studies but take advantage of research studies conducted by others.
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