Every business wants to increase sales, reach new customers, expand market share. The key to growing sales is not merely reaching new customers all on your own, but also to spread your product information (i.e promotion) in such a way that customers, hitherto unknown, get to know about your product and contact you on their own.

While direct marketing is comparatively easy to understand and implement, effective promotion needs creative thinking and innovative application. Successful marketing requires a clever mix of both direct marketing and promotion, ensuring maximum return on investment.

Some of the popular choices of direct marketing are : participation in trade fairs , visiting potential overseas buyers in target markets etc, all of which are rather expensive. In this article, we discuss a low cost option of reaching target markets - commercial representatives, agents and distributors . Contrary to popular belief - appointing representatives, agents and distributors in target markets can be done at zero or minimal cost. However, you need to know what's the best practice and how to locate reliable agents and distributors in Europe and USA. This article discusses when and how to appoint representatives, agents and distributors and lists free sources of information on how to locate reliable agents.

Commercial Representatives, Agents and Distributors constitute a very effective marketing channel for exporters. Imagine having your own man in overseas markets who, with their understanding of local language, culture and market trend can promote your products to right customer segments. An effective market representative can multiply your sales several times at a very reasonable cost. Besides, having physical presence of your business in target country add to customer comfort level significantly.

These are generally individuals or small firms who do not purchase or maintain an inventory of your products. Their most obvious benefits are knowledge of local language and close proximity to existing and potential customers. They usually solicit orders from potential customers on behalf of the exporter (also called principal) and their compensation is a commission from the net export ex factory price or agreed fee. Orders are placed on behalf of the buyer, the agent usually does not get involved in shipping/ delivery.

Also called dealer, wholesaler or stockist, is a larger firm than commercial representative or agent. They have the product knowledge, qualified personnel, local sales network, physical facilities and financial resources to perform all of your export marketing functions. They are equipped to advertise, promote, order, purchase, transport, stock, deliver, finance and repair you products.

Distributors differ from agents in their ability to maintain a continuous inventory of products and spare parts for prompt delivery and reliable customer service. Distributors are compensated in the form of discount from gross export ex factory price and may enjoy other facilities like credit, promotion support etc.

• It is an accepted distribution method in the country you are exporting to
• You are unwilling to spend more or looking for an initial low-cost option to enter the target market
• You do not need to maintain inventory in that country. For example, if you manufacture custom products, capital equipment, branded consumer products, or can have inventory shipped directly for individual orders, you probably do not need to keep stock and maintain a distributorship program in the country to which you are exporting
• You want to maintain direct control of the sales of your products overseas. Since agents sell the product on behalf of the exporter, they must sell it at the exporter's price, under specified conditions and with prescribed representations and
• You intend to benefit from corporate identity and intend to conduct business under your own name

• It is the accepted distribution method in the country you are exporting to
• You are satisfied that the target country is important for your marketing plan
• You need to maintain inventory in the foreign country
• You do not wish to invest in your own distribution network
• Your corporate brand identity in the country is not essential