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Unformatted text preview: he ones between car manufacturers and their suppliers of parts, materials, and components.
In some industries companies use representatives, agents, or commissioned salespeople.
Technology can change the patterns of distribution in an industry or product category. The Internet,
for example, is changing the options for software distribution, books, music, and other products. Cable
communication is changing the options for distributing video products and video games.
The Distribution Patterns topic may not apply to most service companies, because distribution is
normally about physical distribution of speciﬁc physical products. If you are a restaurant, graphic
artist, architect, or some other service that doesn’t involve distribution, just delete this topic from your
For a few services, distribution may still be relevant. A phone service or cable provider or Internet
provider might describe distribution related to physical infrastructure. Some publishers may prefer to
treat their business as a service rather than a manufacturing company, and in that case distribution
may also be relevant. Competition and Buying Patterns
Explain the nature of competition in this market. This topic is still in the general area of describing the
industry, or type of business. Explain the general nature of competition in this business, and how the
customers seem to choose one provider over another.
What are the keys to success? What buying factors make the most difference? Price? Product
features? Service? Support? Training? Software? Delivery dates? Are brand names important? CHAPTER 9: THE BUSINESS YOU’RE IN 9.3 In the computer business, for example, competition might depend on reputation and trends in one
part of the market, and on channels of distribution and advertising in another. In many businessto-business industries, the nature of competition depends on direct selling, because channels are
impractical. Price is vital in products competing with each other on retail shelves, but delivery and
reliability might be...
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- Winter '09