1106

Problem

What product/market factors lend themselves to the use of manufacturers’ representatives?

Step-by-step solution

Show all steps

Step 1/1

Following factors are the main reasons to the use of manufacturer’s representatives (Reps):

• 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

• As reps provide only sales force then organization kept its goods with it which gives the organization more control in the market while with indirect sales channels goods are kept with distributors

• Working with reps involved only either their fixed salary or commission but working with sales channels involves lots of other operating cost. So working with reps can eliminate all the operating costs

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