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distribution as the only feasible alternative. Companies might insist on
using direct distribution as the best way to get a strong market position.

There is also the possibility that a company might have to change its
distribution channels depending on the size of the market or the product.
For example, DELL use direct distribution channels (its own sales force)

to its customers for its large equipment, but when it started selling smaller
products to a smaller market and individual customers, the company found

that a direct sales force was too expensive and utilised technology as well
as virtual shopping websites.

10.4.2 Distribution intensity

The third choice is between selective and widespread distribution.

Selective distribution means selecting a limited number of retailers in a
market area. Widespread distribution refers to the policy of selling through

any retailer that wishes to handle the product (Doole and Lowe, 2008).
Most international companies hope to make their products as widely
available as possible, so it is a good idea to select a limited number of

distributors to carry inventories and to provide service and promotion. In
countries with uneven income distribution, the company might use

selective distribution if it sells only to a group above a certain income level.
For example, with consumer durables or industrial products, the
distribution in a smaller market might be more selective because of the

thinness of the market and its relative concentration. The fourth decision
is about working with the channels. When the firm sells directly to the

retailer or to the consumer, the costs of direct distribution bring benefits of
control as well as the flexibility to respond to market conditions and better
market feedback. In this case, when the firm cannot afford to go direct it

has to deal with independent intermediaries. The company has to co-
operate rather than maintain control. This could be a problem in some

markets, but the company’s conditions can vary from country to country.
To succeed in the market the company needs an independent

intermediary that does the job well; the way to increase the co-operation
of the intermediary is to increase its commitment to the local market. When

the company changes to local production, it will increase its involvement