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Thursday, 4 October 2018

Distribution of Industrial Products



      Four types of channels are widely used to reach industrial users. Again, a manufacturer may use a sales branch or a sales office to reach the next institution in the channel, or two levels of wholesalers may be used in some cases.

1) producer_industrial user; the direct channel accounts for a greater dollar volume of industrial product than any other distribution structure. Manufacturers are large installations,such as airplanes,generators and heating plants,usually sell directly to users.

2) Producer_industrial distributor_user; producers of operating supplies and small accessory equipment frequently use industrial distributors to reach their markets. Manufacturers of building materials and air conditioning equipments are two examples of firm that make heavy use of the industrial distributor.

3) Producer_industrial distributor_reseller_users; under here, distributors buy various products from manufacturers and bundle them with related products for the purpose of resale. The resellers which are usually smaller and locally based firms,work closely with the end users to meet the purchaser's needs. This channel option is common for computer products as well as other relate high ted items.

4) Producer_agent_users; firms without their own marketing departments finds this a desirable channel. Also a company that want to introduce a new product or enter a new market, may prefer to use agent rather than it's own sales forces.

5) Producer_agents_industrial distributors__users; this channel is similar to the preceding one. It is used for some reasons,it is not feasible to sell through agent directly to the industrial user. The unit sell may be too small for direct selling,or decentralized inventory may be needed to supply users rapidly, in such case, the storage service of any industrial distributor are required.