Tweet

Know the Buyer's Food Chain

Written by: Bill Warner

Article Overview: Knowing that you have, or will have, a winning product does not give you time to rest. You have to grease the skids by making your buyers aware that you have a product that solves an important problem that they have. Founded upon your in-depth understanding of your buyers, you need to structure the appropriate marketing campaigns that raise buyer awareness of the product's value and availability. This can be mind numbing work, but is very necessary in order to not have surprises that could stop your business later. Many hours spent on understanding the distribution channel can save you from a whole lot of costly mistakes later when you are trying to get the revenue for your hard work.

Know the Buyer's Food Chain

Knowing that you have, or will have, a winning product does not give you time to rest. You have to grease the skids by making your buyers aware that you have a product that solves an important problem that they have. Founded upon your in-depth understanding of your buyers, you need to structure the appropriate marketing campaigns that raise buyer awareness of the product's value and availability.

Know How the Buyer Buys

Almost always, it is not obvious how the buyer actually buys. Knowing this is the subject of millions of dollars that some companies spend in order to introduce products to the consumer retail industries. Advertising agencies and research firms get rich figuring this stuff out. The best way, and a lot cheaper, is to ask them yourself. Approach representative examples of your buyers and ask them how they purchase products in your market segment. Answer these questions:
* Who do they buy from
* Where do they learn about new products
* What are the payment requirements
* What incentives are offered
* What are the terms and conditions for the purchase
* Is credit required
* What are the price ranges
* How is the delivered

There will be many additional questions, depending on the market segment and product, but the idea is to thoroughly understand what will influence the buyer's decision.

Who does the buyer's seller buy from?

If you followed the heading for this paragraph you realize that there is a food chain of buyers and sellers that extends from your back door all the way to the consumer of your product. This food chain is made up of the likes of:
* Manufacturers representatives
* Wholesalers
* Distributors
* Integrators
* Valued added resellers
* Remarketers

Each of these points in your food chain offers some additional value and takes a cut of the sale. In order to get your product to market, you will have to understand the entire food chain that exists between you and your buyer.

As you did with the ultimate buyer, you will have to understand each of the points in the food chain for your business. They are buyers too. You will need to know many of the same things, plus:
* Discounts expected
* The value added they provide
* The incentives that will have to be offered
* The training requirements and costs
* Basically how the flow of goods through these channels works

This can be mind numbing work, but is very necessary in order to not have surprises that could stop your business later. Many hours spent on understanding the distribution channel can save you from a whole lot of costly mistakes later when you are trying to get the revenue for your hard work.

Related Articles
  What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 6)
  What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 20)
  Who Are Your Buyers and Who Feeds Them
  What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 8)
  Are Multiple Supply Chains Important Survey Response 2

Article Tags: advertising agencies, appropriate marketing, back door, buyer awareness, buyers and sellers, food chain, grease, heading, incentives, manufacturers representatives, market segment, marketing campaigns, paragraph, representative examples, resellers, retail industries, skids, wholesalers



Related Forum Posts
Re: Are You Complying with the FTC? - A lot online marketers will run to Cyprus and other Islands to do their businesses. FTC rule or no rule the Internet is a global thing and still a wild wild west. Buyers should be careful and do due diligent before buying anything online
Good Potential for Packaging Industry - There are a lot of competitors, but I think there is huge potential for more cost effective recyclable packaging. Food packets, packing for products, all is growing industries, with competitive pricing its possible to earn little from these.
Re: Are You Complying with the FTC? - [quote="ideasuniversity":2shwf6gr]A lot online marketers will run to Cyprus and other Islands to do their businesses. FTC rule or no rule the Internet is a global thing and still a wild wild west. Buyers should be careful and do due diligent before buying anything online[/quote:2shwf6gr] Exactly. The consumers should have enough common sense to check out a program or product before buying it if they're worried it might be a scam. There's plenty of resources available to aide them in the process. But, unfortunately, everyone must suffer regardless.
How Many Hours A Week Do You Watch TV? - About a year ago or so, I completely cut off my cable TV. Food Network was the only channel I miss but I really don't miss it more than I expected. News, Sports, you know, the stuff you thought be hard to miss out on, I never realized how unimportant they could be and my "selective ignorance" really hasn't hurt my life. If I want news, I could always turn on to the Internet. How about you? Warmest Regards, Takuya
Re: America's 9 Most Stolen Products - Hey Evan, I'm pretty surprised by some of the items on the list. Cell phones and small electronic gadgets are the normal items to get stolen in my area that I hear about. Food, especially meat and stuff, seems odd, but the reasons are understandable as Michelle pointed out. Meat is rather expensive these days, and I'm sure many have a hard time affording the meat they would really like to have. Those excuses are hilarious.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Are You Too Good for Your Job?

What should your free giveaway be?

Multilevel Marketing: 4 Tips To MLM Success

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.