Question

1. Assume you are a salesperson for a global equipment manufacturer. From your position, is it better to sell directly to the farmer, or is it better to sell your product to a local dealer and allow the dealer to sell to the farmer? Explain your answer thoroughly. (It may be helpful to lay out the pros and cons of each strategy to explain why you chose what you chose) a. b.

Answer 1

a. As a sales person for a global equipment manufacturer, it would be better to sell directly to a local dealer and allow the dealer to sell to the farmer.

b. By selling the equipment directly to the local dealer, I will be able to sell more products to different customers. If we do not have adequate information on the needs of the farmers, the local dealers will help to understand the same and market the product more effectively. As we are global manufacturers we need to concentrate on selling the product globally to different markets. But for that we need to create brand awareness, which is not possible if we directly approach the farmers. Farmers may not be aware of our brand, but they would buy our product based on their trust on the local dealers when it is sold through the dealers. Another advantage is that I would be able to dell my product in bulk but if I sell to farmers, each farmer may need only one equipment and the process of selling would be difficult and time consuming. A disadvantage of this method is that we may get a lower price per unit of the equipment compared to the other option, but while considering the sales volume this loss can be compensated. Moreover working with retailers will help to understand more opportunities and tie up with other retailers to explore the market more deeply. Hence I would choose the option to sell to a local dealer and allow the dealer to sell to the farmer.