The following guidelines point out ways and means of increasing sales and profits in highly competitive foreign markets. A firm must be flexible in using these techniques, since situations vary depending upon the nature of the product line, the personality of the distributor, and other special market factors. Close coordination between manufacturer and distributor is, of course, essential, and the company representative is the person in this relationship, helping the distributor to overcome obstacles and acting as an indispensable communications link.

CONTROLS and COMMUNICATIONS

1. See to it that headquarters executives, regional representatives, and marketing experts visit the distributor often.

2. Secure monthly and quarterly reports on: sales, inventory, after-sales services, storage facilities, competition activity, new product and technological developments, and distribution patterns.

3. Maintain regular, sympathetic, and clear correspondence.

4. Bring distributors occasionally to the U.S., to foreign plants and to major regional offices.

5. Develop the distributor's identification with your company and make him proud to be your representative by communicating the importance of the distributor to corporate goals, taking him into your confidence on future plans, asking for his ideas for improving your business, improving your company's image locally and regionally.

6. Hold regional distributor conferences.

7. Send giveaways and free samples to distributors, bearing your company's name.

8. Reward good performance with cash prizes, trips abroad, achievement certificates or plaques.

9. Publicize successful distributors in advertising and in-house newsletters.

10. Cover costs of his club and society memberships.

11. Provide training and training materials.

12. Reward a successful distributor with an exclusive contract.

13. Offer credit terms that are competitive or better, both in length and method of payment.

14. Give better credit terms to new distributors or to those in highly competitive markets.

15. Offer incentive prices for expanded sales.

16. Assist in overcoming exchange difficulties.

17. Assist in securing local financing.

18. Share advertising and promotion costs.

19. Ship semi-manufactured goods for local finishing to get lower tariffs and greater margins for the distributor.

20. Provide training programs to develop distributor skills in product management, market research, and general business.

21. Develop advertising campaigns in local media (newspapers, magazines, cinemas, radio, out door); in international media (mainly magazines), and by providing local advertising materials.

22. Develop promotion through clear and impressive export catalogs (preferably in the local language), plenty of samples for customers, contributions to local charities, participation in local trade fairs, close identification of your firm with local country aspirations (where possible), direct mail campaigns, sponsorship of local sports and cultural events, documentary films and slides for school, clubs, and customers.

23. Upgrade after-sales servicing to ensure customer satisfaction, generate reorder sales, and build the distributor's service income.

24. Provide necessary service and technical manuals in the local language.

25. Cooperate in market surveys to spot sales trends.

26. Warehouse at strategic spot around the globe to assure prompt filling of orders.

27. Maintain regional technical centers to support effective after-sales servicing by the distributors.

28. Compare ratios of your sales with competitor sales.

29. Match sales against past performance.

30. Check against market-survey targets.

31. Watch inventory turnover ratios.

32. Compare notes with retailers on your distributor's sales efforts.

33. Check local media for effectiveness of advertising (and to see that ads are really being placed).

34. Compare short-term and long-term effectiveness of distributor's activities.

35. If dissatisfied with distributor's performance, tell him so in person, not by letter.

36. Tie credit and terms to distributor performance.

37. Set deadlines for selling a fixed amount.

38. Threaten (nicely) to give new products or all products to competing distributor.

39. Switch from an exclusive to a nonexclusive contract -- if possible.

40. Suspend shipments to the distributor.

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Date Updated: June 11, 2010