A Case Study On Marketing Agency Credit Risk Control Of J Company

Marketing agency as a newly emerging marketing model has been concerned by most of the enterprises in current global economy. It means sole agent for manufacturer to make brand positioning, advertising, market analysis, sales channel construction, production sales and profit and so on. But now among competitive buyer’s market, due to lack of scientific and meticulous management of marketing agency credit, manufacturer is facing reduced cash flow, tremendous financial pressure and many other problems. Therefore marketing agency credit management has attracted increasing attention. Take J as an example, a state-owned holding large-scale machinery manufacturing enterprise, massive marketing uncollectible receivable makes Purchasing Department and Producing Department don’t have enough funding, machines are frequently delivered late causing marketing agency presents fine requirements; lack of cash flow for Human Resources Department, staff salary becomes difficult problem leading a large number of staff turnover; General Manager’s Office repeatedly asked the loan application to the Group’s headquarter makes group leaders doubt leadership of J not reach the leadership assessment standard; lack of funds, technical department can’t meet requirement of training and overtime so that technical level has remained stagnant and state of personnel becomes more and more inattentive; no positively bonus policy or unfulfilled bonus directly affect J’s sales and image ultimately.Based on above background, from theory of marketing credit risk and marketing agency credit, this subject is to comprehensively analyze broken trust of marketing agency from4aspects of J company:unsound marketing agency credit management mechanism, lack of marketing agency credit investigation and lack of credit rating, lack of J company’s own right protection and lack of maintenance mechanism, backward account receivables tracking management and recovery method; and also strive to improve J’s traditional credit management system of marketing agency, to suggest practical recommendations and countermeasures according to practical situation of J company. Through making effective marketing agency credit management policies, helping and guiding Marketing Department’s business contact with other departments and their timely collection, collation, analysis and evaluation of marketing agency information, it is required of classification management on assess results to safeguard J claims. At the same time it is required to track undue account receivable at any time, to diagnose respectively and to collect due account receivables regularly, so that account receivables can always be at top optimization. Through above approached, it is strived to prevent and solve fundamentally too large account receivables for J company. Meanwhile, it is strived to advice effective application for other companies who are facing same problems.