Question

What are the differences between a Merchandising company and a Manufacturing Company

Answer 1

Solution:

The main difference between merchandising business and manufacturing company is that a manufacturer makes goods to sell and a merchandiser buys or acquires goods or resale.

Merchandising company	Manufacturing company
Merchandiser buys or acquires goods or resale	The manufacturing company makes goods to sell.
A merchandiser owns strength in acquiring goods, increasing their value and marketing them to buyers.	The successful manufacturer features expertise in developing an operation that produces high quality, efficient or high value goods and then distributing them.
The distribution or trade channel represents the flow of goods from manufacturer through distribution, retailer and on to the final customer.	The manufacturer makes goods and traditionally sells them to the distributor or retailer
Retailer merchandising businesses focus on promoting their company and product bands to target customers.	Manufacturers typically uses a combination of push and pull marketing strategies. Pull marketing occurs when the manufacutrer promotes its brands to end customer. Push marketing occurs when a manufacturer pormotes goods directly to trade buyers or merchandisers.
A Merchanidser buys that finished goods from manufacturers and either holds its new inventory in a distribution center or in storage areas in stores.	For manufacturers production inventory includes raw materials used in producing finished goods. Low costs and efficient use of raw inventory to profitability.