Manufacturer's Agent

Posted in Marketing and Strategy Terms, Total Reads: 402

Definition: Manufacturer's Agent

Manufacturers’ agents are independent professionals who provide sales and marketing services to the manufacturers and suppliers. They handle different products portfolio that are non-competing and work either for a specified territory or the one based on their skills.

They are called with different names in different industries like representative or brokers or agents. In real estate industry they are called agents or brokers whereas in food and manufacturing they are called representatives. Generally work for multiple lines of industries to remain profitable. These representatives are abreast with the cutting edge technology and very good knowledge about the current trends. They can easily convince the customers. They have a strong sales force to deliver results to the clients in an efficient and timely manner. Generally food industries and electrical take great help of the representatives as there is more to explain about the products. But in other industries only 50% people employ marketing representatives to deal with clients as sometimes it becomes difficult to trust the capability of these representatives. These people can’t control the price or the set targets they just have to present what the offerings of the company are.

To maintain good relationship the agents provide some ancillary services like installation, replacement and maintenance. Most of them provide one or more of these services apart from doing the main job. This helps the agents get the cost-effective sales as they are getting more business from the client.


1. They sell in a defined territory.

2. They don’t handle the competing lines and focus on only one product at a time.

3. Can handle multiple non competing lines

4. Self-operated

5. Works with distributors so have good network.

6. Add value through their knowledge of technology.

7. Focus on customer needs.


1. They don’t take possession of the products

2. They get compensation by commission or sales.

3. Don’t keep inventory.



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