A company is an organization dedicated to activities with economic or commercial purposes to satisfy the needs of some good or service in the market. There are several types of company, one of the most recognized are commercial companies but what?What is a commercial company? What does? How to recognize it? It is important to make these concepts clear.
A commercial company is one that is responsible for acquiring: raw materials (resources or materials to be processed and converted into goods), goods intermediate (that still require one or more processes before being an act for consumption), finished goods (ready for consumption), capital goods (heavy equipment such as heavy machinery, forklifts, generators or vehicles) to later sell to other companies or consumers end.
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In this article you will find:
Role of a trading company
This type of company has the function of carrying out the exchange of products in the market.
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From a marketing point of view, the commercial function connects the company with the market and does so in the following way:
- Knowing the existing needs in the market, either of the final consumer or of other companies, depending on the product that is sold.
- Developing the demand, that is to say, generating a specific need for the product that is marketed.
- Serve the demand by supplying what it needs. For this, you will have to have products available according to the needs of the consumer, in addition to taking into account the competition, profitability, meeting sales objectives.
To develop a process that helps the execution of the commercial function based on marketing it is necessary:
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- Carry out an analysis of the commercial system: It involves a study of the business environment, which includes the market, the existing demand in the market, segmentation market, behavior of the market.To do this, a market information and research system is used that is carried out through surveys, statistics measurements.
- Strategy design: It consists of setting a plan to achieve the highest number of sales and profitability business through the appropriate combination of the four marketing instruments: product, price, promotion and distribution.
- All business activity must be organized, directed and controlled.
Characteristics of commercial companies
It is characterized because its operations do not include any production process, they do not carry out any transformation on the materials it acquires, nor does it generate the costs incurred in these processes, unlike manufacturing companies or industrial.
Commercial companies fulfill a function of intermediaries, they are in charge of the distribution, transfer, storage and sale of products.
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They can be public or private. There are usually many cases of joint ventures that are engaged in both the production and marketing of products and another type of joint venture is one that buys and sells products and also offers maintenance and repair.
Types of business enterprises
They are classified into three broad categories:
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- Retailers: They sell on a small scale, in a small geographic space and the clients are mostly the final consumers.
- Wholesalers: They market on a large scale, buy in bulk and then sell to retailers.
- Brokers: They sell products in exchange for a commission.
