exam 1 Flashcards
End user
does not resell in present form
contractor
is an end user
OEM
original equipment manufacturer
MRO
maintenance, repair, and operations
levels of distribution
Exclusive -> selective -> intensive
Exclusive: like Maserati
Selective: like rolex
Intensive: like washer and dryer
Breaking bulk
selling product in smaller quantities than allowed by manufacturing
assortment
bundling products and services together
purchase time
when the consumer wants to place the order
Inside sales
no face to face with customers, must be able to analyze and respond quickly, should have good problem solving skills
Outside sales
- rep should be a specialist in the customer’s business area
- meet customers in person at customers’ business place
- sufficient product knowledge
- should be able to advise customers and recommend products and services that will help the customer by reducing their operating costs
- saving money and solving problems.
sales manager
- training, coordination, evaluation, technical expertise of inside and outside sales force
- set goals and quotas for salespeople, identify important accounts and primary products to those accounts
- evaluate results and reward those who meet objectives
- major role in determining product lines to purchase and inventory
PAID
professional association for industrial distribution
Product based purchasing
- Buy what can be sold at profit,
- Distributor decides what to buy, sales team figures out to whom it can be sold at a profit,
- A little “Old School” but still exists in many channels
Customer based purchasing
Distributor decides to buy based on the requirements of
the customers they are serving, Tries to provide products at desired service level and
most economical cost
buy-outs
Required when merchandise ordered by customer not available in inventory, Normally buy-outs are done from the local competitor to satisfy customer orders, Better forecasting will lead to less instances of buy-outs
