If the product isn’t liquidating else is dumped in dealer
how you’ll liquidate?
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Answer Posted / balesh
It'll depend on the situation. If the liquidity crunch is
acute, then you'll have to go for a distress sale.
Else sales promtions and discounts might help. Either way
the problem has arisen due to lack of demand and to
generate the demand marketing has to be done. And please
Don't mix distribution with marketing. they are separate
departments.
For example, just because a saleman gets a bonus, he might
dump the material at the distributor. company might think
there is more demand (bullwhip effect) and they will
produce more. eventually there is more product and less
demand and nothing can be done about it. everybody loses in
this case.
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