The Evolution of Marketing Channel Strategy Theory of Channel Strategy

I. The first appearance of the elements of the "marketing mix" in the mid-1950s

In the 1950s, the concept of the "marketing mix" appeared for the first time. Neil Bowden proposed a 12-factor "marketing mix" strategy aimed at guiding corporate marketing practices, namely, "product planning, pricing, labeling, supply and distribution routes, personnel sales, advertising, promotion, packaging, display, support, physical distribution and market research". This combination of strategies in theory for the first time on the scope of the study of marketing better defined; which put forward by the modern marketing channel strategy theory as the basis of the "supply and marketing routes, personnel sales, display, support, physical distribution" and other strategies.

Neil Bowden summarized for the first time the content of marketing activities related to the channel activities, and carried out a preliminary analysis; pointed out that in marketing activities, in the channel should be how to do a good job related to the "supply and marketing routes, personnel sales, display, support, entity distribution" and other activities, on the need to pay attention to the problem, was analyzed. Problems, was analyzed. It can be said that Neil Bowden defines the scope of marketing channel strategy theory; and emphasizes the "supply and marketing routes, personnel sales, display, support, physical distribution" and other seven elements must be coordinated.

Second, the 1960s for the first time the concept of "channel strategy"

In the 1960s, McCarthy put forward a far-reaching 4Ps combination of strategies, namely, "product strategy, price strategy, channel strategy and promotional strategy.

In the 1960s, McCarthy put forward a far-reaching 4Ps strategy, namely "product strategy, price strategy, channel strategy and promotion strategy", which enabled people to find the most important factors from the more complicated marketing variables, and for the first time put forward the concept of "channel strategy".

McCarthy, on the basis of Neil Bowden's research, summarized the 12 factors of marketing practice into four strategies.

Channel strategy consists of the strategy of carrying out various activities to enable target customers to approach and obtain their products. Suggests that various intermediaries and marketing service facilities must be effectively utilized in order to deliver products and services to the target market more efficiently. Points out that manufacturers must understand the various types of retailers, wholesalers and companies engaged in physical distribution and how they make decisions.

Three, the 1990s emphasized the convenience of the channel

Due to the development of marketing, the original 4P combination gradually replaced by the 4C combination, namely "customers, cost, convenience and communication" of the four elements of the new marketing mix strategy; in the channel strategy more emphasis on convenience ( Convenience), the channel strategy. Convenience), that is to say, for the consumption of objects to provide as much as possible to facilitate the consumption of the channel, so that its consumption of non-monetary costs to reduce, such as chain supermarkets for the residents to provide convenient and fast service, reflecting the convenience.

The emphasis here is on the convenience of the channel, the requirements from the consumer's point of view to consider the construction of the channel, to provide convenience for consumers. Now the rise of large chain stores and network marketing, can be considered the implementation of this channel strategy. The implementation of this channel strategy is a complex systematic project, not just a change in concept, but also involves process reorganization, organizational restructuring. Solve the problem of creating a convenient consumption channel for consumers, often lead to a dramatic and huge increase in the rate of shopper or market share. It is important to note that the channel strategy emphasized here - emphasize the convenience or with another "customer, cost, communication" combined, convenience is only an important part of the channel strategy.

Four, into the 21st century began to emphasize relationship marketing

American scholar Don E. Schultz (Schultz) put forward a new "4Rs marketing mix" theory, that is, marketing should contain the following four elements: association, response, relationship and return. In the channel strategy emphasizes relationship marketing, emphasizes that manufacturers should establish long-term, stable and close relationship with customers, reduce customer turnover, establish customer database, database marketing, so as to reduce marketing costs.

Nowadays, in the market economy, cooperation and win-win situation are emphasized between business partners; and the same is true between vendors and customers. The cost of keeping an old customer is only one-fifth of the cost of developing a new one; and a satisfied old customer tends to bring in more new customers, and word-of-mouth advertising is one of the most effective advertisements; moreover, due to the advancement of modern information management technology, it makes it possible to create the technical conditions for the establishment of a long term, stable and close relationship between the vendor and the customer, so that the vendor is able to locate the old customers faster and more accurately. The purpose of the channel is to establish a connection between manufacturers and customers, so as to realize the circulation of goods. In this sense, emphasizing the relationship marketing channel strategy began to return to the core of the marketing channel and the original meaning.

V. Analysis of our scholars on the new trend of channel strategy now

China's scholars believe that the new trend of channel strategy is now manifested in three ways:

(a) the channel structure centered on the construction of the terminal market. In the past, enterprises focused on the top and middle of the sales channel, through the market speculation and the policy of large households to carry out sales work; when the market turned into a relatively saturated state, the requirements of the enterprise by the "management channel" to "management terminal".

(ii) channel members to develop a partnership-type relationship. The traditional channel relationship is "I" and "you" relationship, that is, each member of the channel is an independent business entity to maximize the pursuit of individual interests as the goal, even at the expense of the channel and the overall interests of manufacturers. In the partnership sales channel, manufacturers and distributors from the "you" and "I" relationship to "we" relationship. Manufacturers and distributors integrated management, the realization of manufacturers channel group control, so that the scattered dealers to form an organic system, channel members to achieve their own or everyone's goals **** the same efforts.

(C) channel system from the pyramid type to the direction of flattening. Sales channels to flat structure, that is, the sales channel is getting shorter and shorter, sales outlets are more and more. Sales channels become shorter, you can increase the control of the channel; more sales outlets, but effectively promote the sales volume of the product. Such as some enterprises from the multi-level wholesale links into a layer of wholesale, that is, the formation of manufacturers - dealers - retailers such a model, the enterprise directly facing the dealers, retailers to provide services.