What are the distribution modes?

Distribution modes include traditional distribution channel mode, vertical distribution channel mode, horizontal distribution channel mode and multi-channel distribution channel mode.

1

The traditional channel system (model) refers to the distribution channel composed of independent producers, wholesalers, retailers and consumers.

There is a loose cooperative relationship among channel members, and each pursues its own profit maximization, which ultimately makes the whole distribution channel inefficient.

Traditional distribution channel system, also known as loose distribution mode, as the name implies, the relationship between channel members is temporary, accidental and unstable.

2

Vertical channel system is vertically composed of manufacturers, wholesalers and retailers, and its members belong to the same company, or are granted exclusive rights, or enterprises with sufficient control ability.

Each member regards himself as a part of the distribution system and pays attention to the success of the whole vertical system.

Vertical channel system includes three forms: ownership type (also called company type), contract type and management type.

The vertical channel system has wide adaptability, and 64% of consumer goods in the United States adopt this system.

Whether it is a large enterprise or a small enterprise, whether it is daily necessities or industrial supplies, vertical distribution channel system is widely used.

three

Horizontal channel system, also known as * * * type marketing channel relationship, refers to the horizontal alliance of two or more companies in marketing opportunities to jointly develop a new distribution channel system.

Its characteristic is that two or more companies combine horizontally to form a new organization, give full play to their respective advantages, and realize the effective and rapid operation of the distribution system, which is actually a kind of horizontal joint operation.

The purpose is to exert the synergy of resources or avoid risks through joint efforts.

Multi-channel system refers to a distribution system that uses multiple channels for the same or different market segments.

(refers to the company establishing more than two channels for distribution activities.

Every channel of the company can reach a certain sales volume.

) two forms: one is that manufacturers sell products with the same trademark through more than two competitive distribution channels.

One is that manufacturers sell differentiated products with different trademarks through various distribution channels.