Producers and suppliers of goods and services have very important role in marketing process. Without production of goods, sales becomes impossible. Even if the firm itself is production unit, the suppliers' service is essential for the supply of necessary raw materials, labor force, capital, machines and equipment etc.
So, the role of producers and suppliers can be mentioned as follows:
1. Market anticipation
Before producing any goods, the producers should first identify the needs of consumers. For this purpose relevant information are collected from different sources and analyzed. Market research is carried out to anticipate demand.
2. Operations
After consumers' needs have been identified, the producer makes plan for the production of the goods, makes arrangement for the regular supply of raw materials and other necessary things from suppliers.
3. Pricing
After the goods have been produced, price of goods is determined. Generally,selling price is determined on the basis of production cost and profit margin.
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4. Promotion
Different promotional activities such as advertisement, publicity, personal contact, public relation etc. are conducted to give information to the customers about goods or services.
5. Distribution
The producers use different distribution channels to supply goods to the ultimate consumers. In this process, the ownership of goods or services is transferred to the buyers.
