West African Trade: A Study of Competition, Oligopoly and Monopoly in a Changing Economy

By P. T. Bauer | Go to book overview

CHAPTER 10
CONCENTRATION, MARKETING ARRANGEMENTS AND COMPETITION (II)

1. SOLE AGENCIES AND OTHER EXCLUSIVE DISTRIBUTING ARRANGEMENTS

The manufacturers of many types of product distribute their products in some markets through merchants or agents to whom sole distributing rights are granted. This method is one of several open to a manufacturer who wishes to enter a particular market, and by it the distributor relieves the manufacturer of the necessity for local marketing activities, such as the carrying of adequate stocks, the promotion of sales (whether by advertising or by canvassing the trade), the handling and execution of orders and, where necessary, the provision of aftersale services. The satisfactory performance of these activities in some cases requires a substantial organization, as well as considerable knowledge of local trading conditions. An established distributor may be able to provide the necessary services for a new product or brand more cheaply and effectively than could the manufacturer if the latter were to set up a new organization specially for the purpose. The distributor may, however, incur appreciable costs for the introduction and promotion of the new product. These costs are in the nature of capital outlays, and the distributor is not likely to incur them unless he is reasonably certain to secure the profits for himself, at least for some years. Sole distributing rights ensure that the benefits of his efforts will accrue to his advantage and not to that of his competitors; the granting of such rights may be regarded as the necessary payment by the manufacturer for the investment and the service which he requires.1 Sometimes the sole distributor in return for his exclusive rights undertakes not to handle competing brands; thus the exclusiveness may be reciprocal.

Although they are referred to as sole agents, the firms holding sole distributing rights often act as principals and not as agents. They own the stocks they carry, assume the credit and other trading risks, and may bear a substantial proportion of the cost of promoting the brand. Moreover, the sole distributor is usually free to determine the price at

____________________
1
Frequently the reward for the special services takes the form of an overriding commission payable on all sales in the territory to the distributor or agent who first introduced the product or brand in recognition of his services in handling and popularizing a particular article or brand. The recipient of such an overriding commission is also frequently referred to as a sole agent.

-130-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
West African Trade: A Study of Competition, Oligopoly and Monopoly in a Changing Economy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 450

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.