There are many advantages of using the expertise of a manufacturer representative agency in selling and introducing your products in the market. They can be hired to conduct a market study. This is useful in improving the products of the company.
It could be that the sales force of the company is not that experienced in the market that they are targeting. Another is that the product may be new and it is an unknown territory for the company. They need another company that is expert in introducing the product to the market.
The information or observation in the market study can be used to innovate products and to improve further current products to make it more suitable for the target market. If the product is new, their experienced and expertise is very useful in introducing the new product into the market. Some markets can be tough and way out of reach for the company to penetrate.
They need to test the market first before going full force on the marketing campaign to avoid big losses. Hiring a third party company to take good care of this aspect of the business is the next best thing. The cost is much lower as compared to when they will launch their own marketing campaign and hire sales people.
The company being new may not be ready at all to spend that kind of amount. You will be needing a huge sales force to launch the product and they may not be as experienced as you expected them to. Also you will have to maintain your sales force.
They should protect the interest of each company that they are working for. There are many reasons why a company or makers of products would enter into such a deal with another company. One of the reasons is that it is more cost effective for them to hire a third party company to dispose the product than to use their sales people.
They will only be paying the other company sales commission. It is when there is sales only that they will be paying them commissions. Depending how many products they have sold on a given period, that is how much the company will be paying. That is a lot better and a lot cheaper compared to the other option.
Make sure that the company handles products that are not in competition with yours because that defeats the purpose of hiring them. They will not be able to promote your products very well and achieve the full potential of their marketing campaign if there is a competing product that they are also trying to market. Ask them how they can assure you of that.
The expenses on marketing the products are taken good care by the manufacturer representative agency. Either way, the company should benefit from the expertise of the promoter. They are expected to be knowledgeable and experienced in their chosen market.
It could be that the sales force of the company is not that experienced in the market that they are targeting. Another is that the product may be new and it is an unknown territory for the company. They need another company that is expert in introducing the product to the market.
The information or observation in the market study can be used to innovate products and to improve further current products to make it more suitable for the target market. If the product is new, their experienced and expertise is very useful in introducing the new product into the market. Some markets can be tough and way out of reach for the company to penetrate.
They need to test the market first before going full force on the marketing campaign to avoid big losses. Hiring a third party company to take good care of this aspect of the business is the next best thing. The cost is much lower as compared to when they will launch their own marketing campaign and hire sales people.
The company being new may not be ready at all to spend that kind of amount. You will be needing a huge sales force to launch the product and they may not be as experienced as you expected them to. Also you will have to maintain your sales force.
They should protect the interest of each company that they are working for. There are many reasons why a company or makers of products would enter into such a deal with another company. One of the reasons is that it is more cost effective for them to hire a third party company to dispose the product than to use their sales people.
They will only be paying the other company sales commission. It is when there is sales only that they will be paying them commissions. Depending how many products they have sold on a given period, that is how much the company will be paying. That is a lot better and a lot cheaper compared to the other option.
Make sure that the company handles products that are not in competition with yours because that defeats the purpose of hiring them. They will not be able to promote your products very well and achieve the full potential of their marketing campaign if there is a competing product that they are also trying to market. Ask them how they can assure you of that.
The expenses on marketing the products are taken good care by the manufacturer representative agency. Either way, the company should benefit from the expertise of the promoter. They are expected to be knowledgeable and experienced in their chosen market.
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