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Slide
14
Benefits
to the Manufacturer
- Potential customers
visit the web sites of brand owning manufacturers every minute of every
day. They conduct research, look for products, compare prices and make
buying decisions. Allowing these prospects to become customers right
at their web site captures business for the manufacturer that might
otherwise be lost to competitors or lack of action. Increased sales
result. In many instances customers need, and are willing to purchase,
more than one product. Manufacturers who control the purchasing opportunities
of their customers are able to offer them further opportunities for
additional sales. Manufacturers can use on-line incentives, collaborative
filtering (product recommendation engines), instant discounts and more
to increase their ability to cross sell.
- By establishing,
sometimes for the first time, a direct connection with their end customers,
manufacturers are able to gain important geo-demographic information
about these customers which allows them to build better products, improve
existing products, offer in-demand complementary products or build additional
products.
- Brand degradation
is an important issue with almost all manufacturers. Products are being
sold over the internet whether the manufacturer supports it or not,
often through illegitimate channels. The only way to truly control internet
sales of a given product is to allow buyers the opportunity to purchase
legitimate products sold directly by the manufacturer. Customers trust
the quality, authenticity and support of the brand’s manufacturer.
- Manufacturers who
sell directly on-line, and fully support their distribution system,
have an opportunity to influence inventory decisions at the retail level.
Information received by customers can be used to support sales of additional
lines, skus or models.
- In a Business-to-Business
(B2B) application, on-line purchasing directly from the manufacturer
can significantly increase ROI. On-line ordering of both end-products
and parts can have a significant impact on a client’s bottom line.
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