The Modern Way of Operating Businesses

There are many different ways to market a product and Green Warehouses is experimenting with using dealerships as the intermediaries.  “Using a middle-man in product marketing allows manufacturing companies to focus on their main goal – creating a quality product”, (Fisk, 2006, pg. 150). Because dealerships currently promote and have strong loyalties to competing manufacturers, Green Warehouses wants to ensure that its program stands out and the salesmen feel incentive to sell their products. With their scooters having a better fuel economy than that of its competitors, Green Warehouses feels it has a stronger product. But because the dealerships have strong loyalties to their current scooter manufacturers, Green Warehouses will need to have an effective and innovative program strategy to be successful.

The first program installment Green Warehouses plans to put in place is to offer higher commissions than the other manufacturers. This feature should have the most significant impact because the dealerships want to make more money and the salesmen want to as well. If the dealership knows that it can make more money per Green Warehouses sale, then its salesmen will be more motivated to sell that product – no matter the brand or manufacturing loyalty. “Money is the greatest motivating factor in sales, period”, (Sexton, 2006, pg. 130). The downside and opportunity cost of this is that Green Warehouses will not makes as much profit per sale. To manage the effectiveness of this strategy, Green Warehouses will need to monitor sales and see if they increase in the dealerships that have the higher commissions. This goes along with the importance of supply management. The right inventory needs to be shipped to the correct locations, as well as having the correct amounts of inventory. Warehouses need to be able to communicate efficiently in regard to the stock they need.

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