Strategies for Motivating Dealership
1. Enhancing Profit Opportunities
Company S may also motivate the dealerships by enhancing the dealer’s profit opportunities. This may be achieved through tactics such as; giving easier terms, more advertising and promotion (Bradley, 2003). This tactics will make it easier for the dealerships to sell company S products thereby encouraging the dealership to take more of the company products. One of the advantages of this strategy is that it enhances profit opportunities not only for the dealerships but also for the company. When the dealers are able to sell more the company also makes more profits. Another advantage of this strategy is that it strengthens the relationship between the company and the dealers creating a loyalty. One of the disadvantages of this strategy is that it may increase cost for the organization. Advertising and promotion requires funding and may increase the cost of distributing products.
2. Encourage Greater Participation of Dealership in Decision Making
The company should create a sense of partnership between them and the dealership (Lamb, Hair & McDaniel, 2008). This can be achieved by giving the dealers an opportunity to contribute towards the decisions of the company that may have an impact on the distribution of the products. These decisions may involve issues such as; pricing, promotion, advertising and delivery of goods. This strategy has several advantages. One of the advantages is that greater involvement of the dealers in the company’s decisions will create a sense of ownership among the dealers thus motivating them to do what is best for the company. The second advantage is that since the dealers are closer to the customers they may have a better understanding of the customers needs and preferences and therefore they involvement would lead to better decisions by the company.
One of the greatest disadvantages of this strategy is that it may create a lot of exposure of...