Slide 24

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.