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Problem

Compare and contrast the functions performed by industrial distributors and manufacturers’ representatives.

Step-by-step solution

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Step 1/3

Industrial Distributors

• The marketing strategy of an organization can be judge on the basis of quality of its industrial distributors

• Industrial distributors provide complete intermediary from maintaining inventory, product sold, delivery, installation, credit and after sales services ALSO

• Key responsibilities of industrial distributors are to contact with all the customers, provide product to each and every customer on time, assemble and install, if required, and provide after sales services

• Generally organizations use industrial distributors in heavily concentrated business market because the most use of industrial distributors is for maintenance, repair and operations (MRO) supplies

Step 2/3

Manufacturer’s representatives (Reps)

• Reps are also called selling hands of manufacturer’s because they perform the complete selling process on behalf of the manufacture

• Reps work in limited geographical area so they know very well about the market potential

• Reps provide only sales force to the organizations which make the use of it quiet economic so rep is best alternative for the organizations which cannot afford to maintain their own sales force

• Generally reps are so experienced in their serving areas that they can provide all the information about their serving industry from information about innovations, latest trends, latest technologies, etc.

Differences

Manufacturers’ representatives are given commission based on their sales and not paid if they doesn’t make a sale but the industrial distributors doesn’t belong to this category, they are almost like partners with the manufacturers.

Manufacturers’ representatives could be run either by a single person or group of people whereas the industrial distribution should have the minimum sales support.

Manufactures representatives provide more economic benefits to the manufacturers than that of the industrial distributors.

Step 3/3

Similarities

Both the industrial distributors and manufacture representatives are independent and build a good relationship with the manufacturers.

Both provide the additional services to the customers which include installation, warehousing, repair etc.