Identifying the Ideal Agent or Distributor
U.S. exporters often appoint foreign reps without much thought. This usually results in appointing
the wrong rep and losing export sales opportunities. In addition, in many countries, it is legally
difficult to change foreign reps. Poor evaluation of a potential foreign rep can lead to a disastrous
marriage without a divorce. There can be nothing more frustrating than to find yourself with the
wrong foreign rep in a key foreign market.
| Foreign Representative Questionnaire |
Who are the end-users of the product that the rep would call on to make a sale?
Based on your domestic sales experience, what are the key industries or customers that use the
product? Who is at the end of the sales channel? List these end-users in order of importance.
Foreign reps who are regularly calling on this type of end-user in their countries will represent your
company. Sometimes, manufacturers sell to more than one industry sector. If this describes your
company, then it may be necessary to appoint more than one foreign rep in a country to cover each
of the key industry sectors you serve. Generally, in industrialized countries, you find reps that
specialize in only one industry sector. They typically only have knowledge about and contacts in that
one industry. The decision should be based on the size and prosperity of the industries in each of
the targeted countries.
What complementary products should the foreign rep be handling?
List the key complementary products that make for the ideal product mix with your product. The
foreign rep already should be carrying a majority of these products. Think of this complimentary
match as "bacon & eggs." You have the "bacon" and you are looking for a foreign rep that has the
"eggs." For example, a U.S. supplier of fishing poles should look for a foreign rep now handling
sporting and hunting equipment - particularly fishing gear. A U.S. supplier of medical x-ray
equipment would look for a foreign rep that handles other medical diagnostic equipment. And, a
U.S. supplier of computer printers would seek a rep handling computer peripheral equipment.
Should the foreign rep carry competing product lines?
It is critical before seriously evaluating potential foreign rep candidates to have a basic awareness of
the local competition in the targeted top foreign markets. A quick scan through the foreign country's
directory of manufacturers and yellow pages can provide this information. The company should not appoint a rep that
handles direct competing lines. This is particularly true since you will depend on the foreign rep for a
good deal of marketing intelligence on competitors. A foreign rep who handles a competitor may
wish to represent you to keep control in his market.
What technical skills or after sales service capabilities must the foreign rep have?
These capabilities and skills are based primarily on the nature of the product. Will you rely on the
foreign rep to help you modify the product in order to fit local content or packaging requirements?
Prepare a detailed list of all these requirements for the foreign rep evaluation. Remember, you will
depend more on the foreign rep to provide these skills and requirements than with reps in the
United States due to the costs to your firm to provide these requirements in foreign markets.
What marketing skills and channels of distribution are required to sell the product?
Use your own experience here. What works best in marketing the product in the United States?
You may be able to use the same concepts in the foreign market. However, you may find that
international consumer product marketing can differ widely from domestic marketing concepts due
to cultural differences.
Obviously, you are looking for a foreign rep that has good product knowledge and has established
an existing channel of distribution for the type of product or complimentary products. The foreign
rep needs to be calling on the primary outlets you serve. They should be knowledgeable of the
major local trade journals to advertise your products. They should be exhibiting at the major trade
shows for the industry.
In addition, the foreign rep should have a large enough outside sales force that can adequately cover
the assigned marketing territory. Catalog salespeople or telephone order takers do not substitute for
reps.
Like domestic sales people, any foreign rep will be encouraged to market the product if you
provide them with current product training, respond quickly to pricing quotations, and provide a
co-op marketing support program.
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