In many businessto business industries the nature of

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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 plan. 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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