Companies entering emerging markets for the first time must exercise particular care in choosing a channel intermediary. Generally, a local distributor is required

Question

What are some of the guidelines that should be considered in selecting a distributor in order to avoid any problems?

Answer 1

Care should be taken in selecting distributors, particularly when entering a new market in a foreign country. Prof. Arnold provided seven specific guidelines to help prevent problems. These guidelines are: (1 ) select distributors, and do not let the distributors select you; (2 ) look for distributors capable of developing markets, rather than those with a few good customer contacts; (3 ) treat local distributors as long-term partners, not temporary market-entry vehicles; (4 ) support market entry by committing money, managers, and proven marketing ideas; (5 ) from the start, maintain control over marketing strategy; (6 ) make sure distributors provide you with detailed market and financial performance data; and (7 ) build links among national distributors at the earliest opportunity. When devising a channel strategy, it is necessary to be realistic about the motives of the typical channel intermediary. If distributors are not properly selected, it can prove to be a nightmare.