Post by account_disabled on Mar 10, 2024 3:35:02 GMT
One of the most effective ways to obtain a competitive advantage in any market is a correct selection of distribution channels. However, this decision, which in theory is limited to choosing between our own sales force, wholesalers, retailers or online, usually comes up against various circumstances in the reality of various external markets, which will dictate the viability of the channel. , or even show market opportunities that can be exploited by those who are able to see them. These circumstances can be basically summarized in the following three elements:
The client: it is necessary to know Ecuador Mobile Number List if there are suppliers who already supply what they are looking for, and in that case, study the possibility of collaborating with them, in order to take advantage of their contacts and knowledge of the market. On the other hand, it is also necessary to ask what the client is like? What reasons push you to choose one product over another? What are your purchasing habits, and how do these impact the way the product is delivered to you? Does the customer need to see and touch the product to make the purchase decision? Control over after-sales service, company image and buyer satisfaction must also be taken into account when working with intermediaries or wholesalers.
Logistics: the operation of communications and road networks, local regulations to be observed, and other factors such as the nature of the product (perishable, susceptible to breakage or damage, flammable, large volume, etc.).
Financing: achieving a significant market share and profits for the company will require a considerable investment. It is necessary to calculate the total cost to use and maintain each of the channels considered – own sales team, intermediaries, internet – along with its total impact on the company's profits, and the brand image for the future.
It is then advisable to start at the end: from the target customer and points of sale where they purchase the product, to those responsible for maintaining stock and acquiring shelf space at points of sale, to transportation and packaging for shipment, according to with dealer specifications.
Naturally, direct options such as sending a sales team to the target market, or establishing manufacturing and sales operations in the target market often exceed the limits of what is profitable, or what is acceptable for many companies. Therefore, taking advantage of a distribution network through intermediaries or licensees with experience in similar products is usually the entry point for most. In this case, it is necessary to check if the chosen intermediaries also work with competing products, in order to create a motivation strategy to encourage the agent or distributor to prefer our brand's product, as well as provide training on the product.
Once the role of the different sections within the internationalization strategy is clear – the target market within each country and each region, volume, market share, economic and personnel commitment, sales and payment conditions, etc. – only then is it possible to select the most appropriate distribution channels, based on the main factors to consider: costs, capital, control, coverage, the type of company, and product life cycle.
What criteria have you found most useful when considering distribution channels abroad? Share your experience with other global entrepreneurs on our blogentrepreneurglobal.info.
The client: it is necessary to know Ecuador Mobile Number List if there are suppliers who already supply what they are looking for, and in that case, study the possibility of collaborating with them, in order to take advantage of their contacts and knowledge of the market. On the other hand, it is also necessary to ask what the client is like? What reasons push you to choose one product over another? What are your purchasing habits, and how do these impact the way the product is delivered to you? Does the customer need to see and touch the product to make the purchase decision? Control over after-sales service, company image and buyer satisfaction must also be taken into account when working with intermediaries or wholesalers.
Logistics: the operation of communications and road networks, local regulations to be observed, and other factors such as the nature of the product (perishable, susceptible to breakage or damage, flammable, large volume, etc.).
Financing: achieving a significant market share and profits for the company will require a considerable investment. It is necessary to calculate the total cost to use and maintain each of the channels considered – own sales team, intermediaries, internet – along with its total impact on the company's profits, and the brand image for the future.
It is then advisable to start at the end: from the target customer and points of sale where they purchase the product, to those responsible for maintaining stock and acquiring shelf space at points of sale, to transportation and packaging for shipment, according to with dealer specifications.
Naturally, direct options such as sending a sales team to the target market, or establishing manufacturing and sales operations in the target market often exceed the limits of what is profitable, or what is acceptable for many companies. Therefore, taking advantage of a distribution network through intermediaries or licensees with experience in similar products is usually the entry point for most. In this case, it is necessary to check if the chosen intermediaries also work with competing products, in order to create a motivation strategy to encourage the agent or distributor to prefer our brand's product, as well as provide training on the product.
Once the role of the different sections within the internationalization strategy is clear – the target market within each country and each region, volume, market share, economic and personnel commitment, sales and payment conditions, etc. – only then is it possible to select the most appropriate distribution channels, based on the main factors to consider: costs, capital, control, coverage, the type of company, and product life cycle.
What criteria have you found most useful when considering distribution channels abroad? Share your experience with other global entrepreneurs on our blogentrepreneurglobal.info.