What are the distribution channels? What are their characteristics?

1. Direct distribution channel means that producers supply products directly to consumers or users without the intervention of middlemen.

2. Indirect distribution channels refer to producers using middlemen to supply goods to consumers or users, and middlemen participate in exchange activities.

Second, the forms of distribution channels are different.

1. The form of direct distribution channel is: producer-user. Direct selling channel is the main type of industrial product distribution. For example, large-scale equipment, special tools and products with complex technology that need to provide specialized services are all delivered directly.

2. The typical form of indirect distribution channel is producer-wholesaler-retailer-individual consumer (a few are group users).

Third, the specific ways are different.

1, there are many ways of direct distribution, but in summary, there are the following:

Order distribution. It means that the production enterprise and the user sign the purchase and sale contract or agreement first, and supply the goods according to the terms of the contract and pay the payment within the specified time. Generally speaking, the active contacts are mostly sales producers (such as manufacturers sending personnel to promote sales), and some popular products or raw materials and spare parts are required by users.

Open your own business department. Refers to the place or business circle where production enterprises usually set up sales offices outside the production area and users are concentrated. There are also some production enterprises or business districts close to users that open stores in front of the factory.

Joint distribution. For example, between industrial and commercial enterprises and between production enterprises, they should unite to sell.

2. Specific ways of indirect distribution channels: There are many ways for enterprises to sell through middlemen in the market, such as factory-store linkage, special distribution, retailers or wholesalers directly buying goods from factories, and middlemen holding various trade fairs for factories.

Fourth, the advantages are different.

1. Advantages of direct distribution channel:

It is beneficial to the information communication between production and demand, and can be produced on demand to better meet the needs of target customers. Because it is face-to-face sales, users can better grasp the performance, characteristics and usage of goods; Producers can directly understand the characteristics and changing trends of users' demand and purchase, and then understand the advantages and disadvantages of competitors and the changes of their marketing environment, thus creating conditions for on-demand production.

Can reduce the loss of products in the circulation process. Because the intermediate link of commodity circulation is removed, the sales loss is reduced, and sometimes the circulation of commodities can be accelerated.

It can make buyers and sellers relatively stable in marketing. Generally speaking, direct selling channels sign commodity exchange contracts, and the quantity, time, price, quality and service are all executed according to the contracts. The relationship between buyers and sellers is fixed in a certain period of time in the form of law, so that both parties can devote their energy to other strategic planning.

Promotions can be made directly in the sales process. Enterprise direct selling is actually a direct promotion activity. For example, enterprises send personnel to direct sales, which not only promotes users' orders, but also expands the influence of enterprises and products in the market and promotes new users' orders.

2. Advantages of indirect distribution channels:

It is helpful for the wide sales of products. Middlemen connect producers at the beginning of commodity circulation and consumers at the end, which is conducive to adjusting the contradiction between production and consumption in variety, quantity, time and space.

It not only helps to meet the needs of manufacturers' target customers, but also helps to realize the value of production enterprises' products, which can make products widely distributed, consolidate existing target markets and expand new markets.

Alleviate the shortage of manpower, financial resources and material resources of producers. The middlemen bought the producer's products and paid the payment, which enabled the producer to realize the value of the products in advance and started a new capital cycle and production process. In addition, middlemen have to bear the costs of storage, transportation and other manpower and material resources in the sales process, which makes up for the lack of marketing efforts of manufacturers.

Indirect promotion. Consumers often shop around before buying products, and a middleman usually distributes similar products from many manufacturers. Different introductions and publicity of similar products by middlemen have great influence on product sales. In addition, powerful middlemen can also pay certain advertising fees and have certain after-sales service capabilities.

Conducive to the specialization and cooperation between enterprises. With the increasing socialization of modern machine industry production and the rapid development of science and technology, the specialized division of labor is becoming increasingly fine. Only by extensively developing specialization and cooperation can enterprises better meet the challenges of new technologies and materials, withstand the severe test of the market and produce in large quantities and with high efficiency.

Middlemen are the product of specialization and cooperative development. The integration of producer's production and marketing makes it difficult to effectively organize commodity circulation and disperse production energy. With the cooperation of middlemen, producers can get rid of complicated sales business, concentrate on production, devote themselves to technological research and innovation, promote the specialization and cooperation among production enterprises and improve production and operation efficiency.

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