Manufacture’s Representative: are the people who work part-time for the manufacture and are paid a commission and pay their own expenses based on the territory or market that is allocated to them. The greatest advantage for them is the time which is at their disposal to utilize it to sell the products of different manufactures which could be sold to the same customer in majority of the cases. This method also helps to avoid channel conflicts and the disasters which might occur. There are very less fixed costs that are incurred as they are not employees but work as a part from their own independent businesses.
Sales Force: Direct sales forces are the representatives who work directly for the company as employees and are been paid as per the salary norms. They are involved in the process of being influencers in buyer preferences, in convincing and thereby carrying out a closure or an action. The basic qualities of them include the personal confrontations which they carry out with the customers, cultivation of relationship which arises from their sale deed or even the outcome and the response which the buyer gets from the sales demonstration.
Since they get a fixed salary they may not put in huge efforts to achieve their targets as such would affect their performance. Independent Distributors: Most of the electronic original equipment manufacturers adopt independent distributor channel option for the purpose of cost cutting which is the need of the hour for most of the companies. Since the demand has been increasing, distributors keep increasing their capabilities and hence the companies have to be more efficient by relying on the independent distributors.
An important assignment for the company is what operations to outsource and whether they can leverage on their human resources and the core competencies of the company. The independent distributors are in a better position to analyze the changing market shifts and the consumer preferences. The only disadvantage may be that the distributor will have its own distribution pattern and methodology and strategies to be followed.
Conclusion: Each channel alternative has its positive and negative implications on the distribution pattern but in the case of Asian manufactures the firm can go for the Independent distributor option because of the changing dynamics which this channel adopts.
MLA Bnet, “Why Use A Manufacturers’ Representative?. ” 2008. CNET Networks. 28th May ,2008. http://findarticles. com/p/articles/mi_qa5331/is_200703/ai_n21283666 Gale, T. “Be a stronger competitor: Use technology to leverage your people’s skills. ” 2008. Microsoft Corporation. 28th May, 2008. http://www. microsoft. com/dynamics/industry/technologyindistribution. mspx