The first decision of the marketing manager is whether to use distributors, provided the option of marketing directly also exists. This is called Channel Selection.

The manager must balance direct sales to those that can be made through third parties in the development of the marketing plan, thus calculating projected future associates sales.

Channel Selection must start by studying the target markets to decide between direct or indirect sales depending on the target market analysis data. we must also take into consideration the distinction between marketing domestically or internationally. International markets served differ widely because of the great variations in the uncontrollable environmental forces.

Forces known as controllable may also vary: distribution channels used locally not available.

Through the net, businesses become to opertate worlwide easily penetrating foreign markets and increase profit and sales. This globalization requieres standardize marketing strategies.

Plan and control a variety of marketing strategies and then coordinate those into a single marketing program. Try to standardize strategies in order to reduce implementation cost.

When selecting Channels of Distribution, management must take into account the characteristics of the market, the product, the company, the legal requirements and the intermediaries available. These are the factors that influence on the Channels of Distribution.

A small product or service sold in small amounts per transaction needs long channels that require the use of middlemen. Normally Network Marketing involves the massive product sales to volume profit, unless you are marketing a perishable good. The company also has the choice of selling through company owned distributors or to train others.

Depending on the financial situation of the firm. A big company may train his own sales force whereas a firm with low budget may use middlemen. Also if management has no experience on selling within certain markets, it must resort to others.

If your product requires extensive after sales service you must be prepared to give this service, you cannot rely on agents. The same principle applies to warehousing and promotion to the final user. The firm may find a cost advantage in relying these tasks to middlemen that will service, warehose and promote its products after they have received the corresponding training.

Finally the firm should be check carefully upon legal requirements for the target markets that may vary depending on local laws.

http://www.iolenterprises.com/ebiznewsletter/index.html

Javier Cristobal
CEO
IOL Enterprises Inc.
http://www.iolenterprises.com