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10.3 Selecting the agent or distributor
One of the major factors in successful distribution, if direct channels are
used, is the selection of the agent or distributor. Terpstra and Sarathy
(2000) state that the international company should specify the distributor’s
demands, which can help a company choose the most suitable one.
Second, the international company should evaluate the distributor’s
history, because the distributor’s past performance is the best predictor of
future performance. Third, the firm should try to ensure that its line will be
a reasonably important share of the distributor’s business. The more
important it is to the distributor, the better treatment its products will
receive.
