Imagine a European manufacturer wants to introduce its digital thermostats to the U.S. market. The thermostats are designed to reduce power usage and save energy. What are the two basic channel structures it can use? Briefly describe the advantages and disadvantages of each method.

What will be an ideal response?


(1) It can market the thermostats directly using company salespeople. (2) It can market the thermostats through independent foreign intermediaries, such as agents or distributors. Using company salespeople generally provides more control and is less risky than using foreign intermediaries. However, setting up a sales force in a foreign country also entails a greater commitment, both financially and organizationally.

Business

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