What are the basic types of channels?

There are three types: length structure hierarchy, width structure and breadth structure.

I. Hierarchical structure of length structure

The length structure of marketing channels, also known as hierarchical structure, refers to a channel structure defined according to the number of buying and selling links of channel middlemen, that is, the number of channel hierarchies. Usually a marketing channel can be divided into zero-level, first-level, second-level and third-level channels according to the number of channel levels.

Zero-level channel, also known as direct channel, refers to the channel structure without the participation of channel middlemen. Zero-level channel can also be understood as a special case of distribution channel structure. In the zero-level channel, products or services are directly sold by producers to consumers. Zero-level channel is the main channel to sell large or expensive products and products with complex technology and special services. In the IT industry chain, some well-known IT companies at home and abroad, such as Lenovo, occupy a leading position. The large customer department or industry customer department set up by companies such as IBMHP belongs to zero-level channel, and Dell's direct sales model is a typical zero-level channel.

The main channels include channel middlemen, usually agents, commission agents or distributors in the industrial market, and retailers in the consumer market.

Secondary channels include two channel middlemen, usually agents and wholesalers in industrial products market and wholesalers and retailers in consumer goods market.

The third-level channels include three channels, middlemen, which mainly appear in daily necessities with wide consumption, such as meat products and packaged instant noodles. In the IT industry chain, some small retailers are usually not customers of big agents, so a first-class professional distributor is derived between big agents and small retailers, and a three-level channel structure appears.

Second, the width structure

The channel width structure is defined according to the number of channel middlemen at all levels. Channel width structure is influenced by product nature, market characteristics, user distribution and enterprise distribution strategy. The channel width structure is divided into the following types:

Intensive distribution channel, also known as extensive distribution channel, refers to a channel type in which manufacturers choose as many channel middlemen as possible to distribute their products at the same channel level. Intensive distribution channels are more common in convenience products in the field of consumer goods, such as toothpaste, toothbrushes, drinks and so on.

Selective distribution channel refers to a channel type that selects a small number of channel middlemen to distribute goods at a certain channel level. In the IT industry chain, many products adopt selective distribution channels.

Exclusive distribution channels exclusive distribution channels refers to the channel type where only one channel middleman is selected at a certain channel level. In the IT industry chain, this channel structure mostly appears at the level of general agent or general distribution. At the same time, when many new products are launched, they also choose exclusive distribution mode. After the products were widely accepted by the market, many companies turned from exclusive distribution channels model to selective distribution channel model, such as Toshiba's notebook product channel and Samsung's notebook product channel.

Third, the breadth structure

The breadth structure of channels is actually a diversified choice of channels, that is to say, many companies actually adopt a combination of multiple channels, that is, they adopt a mixed channel model for sales. For example, some companies set up large customer departments to sell directly to customers in large industries, adopt a wide range of distribution channels for a large number of small and medium-sized enterprise users, and cover consumers in remote areas by mail order.

Generally speaking, the channel structure can be divided into two categories: direct sales and distribution, in which direct sales can be subdivided into several categories, such as large customer departments directly established by manufacturers, industry customer departments directly established by manufacturers or sales companies and their subsidiaries directly established. In addition, direct mail-order telephone sales companies and online sales can be further subdivided into two categories: agents and distributors. Both of these methods may choose intensive, selective and exclusive methods. Figure 3 vividly depicts the structural types of marketing channels.

Traditional marketing channels: wholesalers, agents and retailers.

New distribution channels: chain operation, franchising, self-operated sales organizations of production enterprises, and online direct selling?