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
Service outputs of distributor
selling, inventory, credit, transportation, servicing
selling
providing technical and market information to those who specify, purchase, manufacture, or install industrial products. Understanding a customer’s business to be able to solve problems
Inventory
maintaining a local inventory of products on the shelf for immediate delivery or pickup
Credit
extending credit to industrial customers
Transport
provide transportation to user’s location
Servicing
serving products after they have been sold and sometimes even after they have been installed
Industrial channel design
manufacturer -> master distributor -> distributor -> end user
Sales model
Design
Construct
Solve technical problems
Sale is complete when…
customer successfully uses the product
Manufacturer’s agent
Similar responsibilities, customer base, duties, and required skills as Manufacture Sales Representative previously discussed (may even refer to themselves as ‘Manufacturer Rep’). - -
Usually represents multiple companies each of which whose sales in a given territory do not support a full salaried employee.
May call on distributors, end users, specifiers, and manufacturers, Usually complimentary products, DO NOT stock inventory; typically do not own it
3PL’s
third party logistics like transportation, warehousing, etc
other members of supply chain
Banks
Integrators
Architects
Engineers
modifiers
responsibility of manufacturer
Producing quality products
Maintaining consistent lead-times
Creating markets
- End user and specifier calls
- Advertising in magazines, trade journals, internet, trade shows, etc.
Printed or electronic catalogs
Provide technical information and training
Protect the channel (Design Wins)
Understand value and compensate channel partners
RFID
Radio-Frequency IDentification
Manufacturer sales rep (factory rep)
Responsible for sales in a given territory, May call on end users, distributors, specifiers, or agents
roles of distributor
(summary)
Successful distributors are continuing to evolve from the
traditional role of component/product supplier to true business partner, using in-depth knowledge of their customer’s business to reduce the customer’s overall operating costs.
