Suppliers factors affecting Marketing Plan

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Suppliers factors affecting Marketing Plan

 In this article you learn about:

  • What is the difference between suppliers and distributors?
  • How are suppliers affecting internal business environment in marketing plan?
  • What is the Service that Supplier could provide you with?

What is the difference between suppliers and distributors?

Some marketers get confused between both of suppliers and distributor. So I am going to explain it to you clearly.

  • Supplier: is the place (or organization) that is going to supply your company with the raw materials that you need to create (manufacture) your products.
  • Distributor: is the place (or organization) that is responsible for distributing your products to the consumers either in direct way (on distributor to end consumers) or by passing through channel of distributors (Indirect way).

How suppliers are affecting the internal business environment in a marketing plan?

  1. The basis of supplier relationship (Suppliers factors affecting marketing plan):

You should ask yourself these questions:

  • How many suppliers I (or my company) have?
  • Do I have a relationship with them?
  • Do I have good relationships with their managers and subordinates?
  1. Supplier innovation (Suppliers factors affecting marketing plan):

  • Are my suppliers having innovation in delivering the raw materials?
  • Can they get me raw materials of the same quality but of lower cost?
  1. Supply record (Suppliers factors affecting marketing plan):

  • Before you deal with supplier, you need to know if they have experience in the sector you want to introduce your product in. If that supplier has a good experience, is it has a good record as a supplier in that sector?
  • Liquidity and financial stability: you prefer dealing with suppliers who have a good liquidity and financial stability, because this means that they will deliver you with the raw materials continuously (so your product will be maintained in the market, no out of stock).
  1. New Entrants into the supply chain. 

  1. The Selection Of The Supplier (Suppliers factors affecting marketing plan):

The following matrix helps you to know which supplier you should deal with:


What is the Service that Supplier could provide you with?

The supplier could get a raw materials of high quality, intermediate, or low quality, the time of delivery of those materials is differs, innovation of the supplier, warranty is provided or not, quality of delivery, how they respond in critical situations, record of experience in the sector and with your company.

Quadrant No. 1 (High Service Quality and Low Cost):

It’s the best choice for you when you look for new supplier for your products, its super bargaining choice for your company to select a supplier that provides the best quality of service.

Quadrant No. 2 (High Service Quality and High Cost):

This should your second choice if you didn’t find a supplier that provide low cost but providing high service quality, most of the high service quality’s’ suppliers ask the high price for their Service quality. Generally you should invest in getting the best service quality from your suppliers.

Quadrant No.3 (Intermediate Service Quality and Intermediate Cost):

If you didn’t have the enough resources to invest in selecting the supplier that provides the best service quality, then look for the supplier that provides intermediate quality with intermediate cost. So I see it’s your choice if your company didn’t have the enough resources.

Quadrant No. 4 (Low service quality and low cost):

Make this as your last choice, if you didn’t have the money and resources to select the best suppliers that provide the best quality in their services.

Quadrant No. 5 (Low service quality and High cost):

Don’t deal with those types of suppliers at all.

Also, you can enjoy one-to-one Intensive Guerrilla Marketing TrainingCoaching, or Consulting with Mohammed Magdy.

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