Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 12 May 2021

Abstract and Keywords

This article examines the advantages and disadvantages of using manufacturer's representatives, and develops a framework for managing and compensating independent agents. Strategic decisions concerning whether the selling function should be performed using a company sales force, an outsourced partner, or combination of the two have an important impact on a firm's competitive advantage. Commission-compensated representatives do not take title of the product, do not set prices, usually do not handle merchandise, and do not sell competing products. However, they typically sell non-competing products. Several factors affect the decision to outsource the sales force, including the feasibility of building commitment with the independent representative, market coverage efficiencies, and selling effectiveness. Several advantages are offered including stability of the rep, market focused agility, portfolio selling capabilities, and risk reduction. Certain challenges are involved in managing the relationship. A different set of management competencies is required compared to a conventional in-house sales force.

Keywords: manufacturer's representatives, sales force, outsourced partner, commission-compensated representatives, market coverage efficiencies

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.