Professional Documents
Culture Documents
Merchant Wholesalers :
Independently owned firms that take title to the goods they handle. There are two types:
Rack Jobbers :
Furnish racks or shelves of merchandise such as music and magazines for retailers for
display and sell them on consignment.
Cash-and-Carry Wholesalers :
Serve mostly smaller retailers with a limited assortment of products.
Drop Shippers :
Take orders from retailers and other wholesalers and have the merchandise shipped from
producer to buyer.
Agents :
They generally maintain long-term relationships with the clients they represent
Manufacturers agents represent several manufacturers in a specific territory.
Sales agents represent a single client in a larger territory.
Brokers:
They usually represent clients on a temporary basis.
There are different length and structure of marketing channel that different organisation adopt
according to various factors involved in decision making .
1. Number of Buyers:
If the number of buyer is large then it is better to take the services of middlemen for the
distribution of the goods. On the contrary, the distribution should be done by the
manufacturer directly if the number of buyers is less.
2. Types of Buyers:
Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the
product belong to general category then there can be more middlemen. But in case of
industrial buyers there can be less middlemen.
3. Buying Habits:
A manufacturer should take the services of middlemen if his financial position does not
permit him to sell goods on credit to those consumers who are in the habit of purchasing
goods on credit.
4. Buying Quantity:
It is useful for the manufacturer to rely on the services of middlemen if the goods are bought
in smaller quantity.
5. Size of Market:
If the market area of the product is scattered fairly, then the producer must take the help of
middlemen.
Some of the factors that EXIDE industries take into consideration before
selecting their marketing channel are as follows.
Some of these factors are :
Market size
Customer proximity
Policy of the organization
Length of the marketing channel can be classified into various levels which
could be graphically be represented
Zero Level
Level 1
Level 2
Level 3
PRODUCERS
AGEN
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WHOLESA
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CONSUMER
WHOLESA
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Producers Of Industrial
AGEN
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INDUSTRI
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DISTRIBU
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INDUSTRI
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DISTRIBU
INDUSTRIAL USERS
INDUSTRIAL DISTRIBUTOR :
An industrial distributor performs a variety of marketing channel functions, including selling,
stocking, and delivering a full product assortment and financing. In many ways, industrial
distributors are like wholesalers in consumer channels.
Agent :
Agents do not take ownership of goods but act as a representative of the supplier. They are
also engaged by exporters of services to represent them in overseas markets.
An agent is generally paid by the exporter based on a commission of sales value generated.
The exporter receives orders for customers from the agent but then delivers goods or services
directly to customers, invoices the customers, and collects payments from the customers. The
exporter is also responsible for setting the selling price, although the agent will likely provide
input on local market conditions to help the exporter decide on pricing.
Agents are generally based in the export market and often represent several complementary
product or service lines. They may operate on an exclusive basis, as the sole agent for a
companys goods or services in a specific export market, or as one of a number of agents for
the exporter in that market that is, on a non-exclusive basis. See About Agents below for
more on roles, choosing the right one, and the pros and cons of using this representation
model.
Distributor :
A distributor buys goods that is, the distributor takes title of the goods and then resells
the goods to local end users who may be retailers or consumers. In some cases, the distributor
may sell to other wholesalers who then sell to local retailers or end users.
Distributors may carry complementary and competing lines and usually offer after-sales
service.
Distributors are paid fees by adding a margin to products, and their fees are higher than those
of agents because they usually carry inventory, extend credit for customers, and are
responsible for marketing.
Because a distributor has more responsibilities in selling your product in market than an
agent, they require a higher margin. This may impact on how you price your product; you
will probably need to absorb the distributor margin otherwise your pricing to the end
customer will be too high. Some exporters find that they are unable to use a distributor as
their profit margin is too small to provide enough margin for the distributor and a competitive
price for end users.
BOOK
PUBLISHER
BOOK
WHOLESALER
AMAZON.com
VIRTUAL
RETAILER
CONSUMER
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EXIDE SERVIC NETWORK
MANUFACTURERS
Shamnagar , Chinchwad (Pune) , Haldia
(West Bengal) , Hosur (TN ) , Taljola ,
Ahmednagar , Bawal (Haryana) , Roorkee
(Uttaraknad) , Haridwar
AGENTS
BRANCH
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BROKER
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DISTRIBU
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MAIN DEALERS
RETAILERS
CONSUMERS
C & F (Surat
Exide
Industry
Godown)
Jobbers
Drop
Shippers