What are the types of marketing channel systems?

Under the condition of modern market economy, the changes of external environmental factors such as social economy, technology, culture, competition and law have brought about changes in marketing channels and promoted the innovation of organizational forms of marketing channels. So what are the types of marketing channel systems? The following is the classification of the marketing channel system that I have carefully arranged for you. I hope you like it.

Types of Marketing Channel System Types of Marketing Channel System: Traditional Marketing Channel System

The traditional marketing channel system consists of manufacturers, wholesalers and retailers. In the process of product distribution, each member, as an independent enterprise entity, pursues the maximization of its own profits, even at the expense of the overall interests of the channel. In this system, no channel member has control over other members. Eventually, the channel efficiency is reduced and the product sales are not smooth, so other types of channel systems come into being.

Types of marketing channel system: vertical marketing channel system

Vertical marketing channel system is a consortium of manufacturers, wholesalers and retailers. In this consortium, one channel member owns the property rights of other members, or has a franchise relationship, or this channel member has considerable strength and other members are willing to cooperate. Vertical marketing channel system can be dominated by manufacturers, wholesalers or retailers. This method overcomes the disadvantages of the traditional marketing channel system, which is dominated by the person in charge of the channel, and all parties in the channel express their opinions, and finally achieves the unified goal and improves the distribution efficiency. There are three types of vertical marketing channel systems: company, management and contract.

1. enterprise vertical marketing channel system

In the vertical marketing channel system, a company owns most of the shares of both the production enterprise and some channel intermediaries, and most of the products produced by the enterprise are sold by the channel intermediaries under the company, or a company owns most of the shares of the production enterprise and all the shares of the channel intermediaries at the same time, so the channel intermediaries are called the underwriters of the production enterprises. Because the control right of product production and sales belongs to the same subject, the distribution of interests between producers and sales intermediaries is relatively easy to solve.

2. Managerial vertical marketing channel system

In the managed vertical marketing channel system, production enterprises and channel middlemen belong to different owners, but their production and distribution are organized, coordinated and managed by large-scale and powerful channel members. In this system, the relationship between channel members is relatively loose, but it depends on the channel system to a certain extent, so all channel members can also? Listen. The conductor of the strong channel. Manufacturers of brand-name products usually have this ability.

3. Contractual vertical marketing channel system

Contract vertical marketing channel system is a contract-based marketing channel system. Coordinate the distribution of benefits among channel members through contracts and unify the actions of channel members in order to achieve the greatest economic and sales effects. Because it is a contract, channel members are very aware of their rights and obligations with others, which can greatly avoid invalid competition and conflict among channel members. At the same time, it is also possible to rapidly expand the channel network on the basis of recognizing the contract and attract more members to participate in the channel operation.

Type of marketing channel system: horizontal marketing channel system

The horizontal marketing channel system consists of two or more unrelated enterprises. * * * With the development of new marketing opportunities, through cooperation, each enterprise combines assets, production capacity or marketing resources to achieve business results that a single enterprise cannot achieve. Enterprises can unite with competitors or non-competitors; We can cooperate temporarily, for a long time, or set up a new enterprise. For example, banks have set up savings offices and ATMs in stores. Banks can quickly enter the market at a very low cost, while stores can provide more convenient services for their customers.

The horizontal marketing channel system can even be used in international marketing. For example, with its excellent performance in the world, Nestle cooperated with General Flour Company to sell its cereal products outside North America; Coca-Cola has established a joint venture with Nestle to distribute instant coffee and tea drinks all over the world. Coca-cola provides experience in managing and distributing beverages around the world, while Nestle offers two famous brands? Nestle coffee and Nestle milk tea.

Types of marketing channel system: marketing multi-channel system

In the past, many enterprises entered a single market through a single channel. Nowadays, with the emergence of customer segmentation and new channels, more and more enterprises adopt marketing multi-channel system. When an enterprise uses two or more marketing channels to reach one or more customer groups, it forms a marketing multi-channel system.

Through marketing multi-channel system, enterprises can gain a benefit, that is, increase market coverage and win the opportunity to adjust products and services to meet the needs of various consumer segments. However, this mixed channel system is difficult to control. When more and more channels compete for consumers and sales, channel conflicts will also occur.

The establishment of marketing channel system When designing marketing channels, manufacturers must determine what is an ideal decision, what is feasible and what is applicable. A new company usually starts to sell as a local or regional operator in a limited market. Due to limited funds, it usually uses existing middlemen. In a relatively small market, companies can sell directly to retailers; In a larger market, it can sell products through distributors. In rural areas, comprehensive businessmen can be used; In urban areas, you can go through professional merchants. In a certain area of the country, you can take exclusive distribution because businessmen do it.

1. Establish marketing channel objectives

Channel objectives should be expressed as target service levels. The buckling point of view is: under the competitive situation, when arranging its functions and tasks, the channel organization minimizes the whole channel cost of some expected service levels. Generally speaking, the market can be subdivided according to the output level of consumers for different services. Effective channel planning must first decide what to achieve and which market to enter. The objectives include the expected level of customer service and the role that intermediary organizations should play.

Channel objectives vary according to product characteristics. Perishable goods need direct marketing, because delay and repeated handling will cause huge losses. Huge products, such as building materials or soft drinks, need the shortest transportation distance and the least handling times in the process of transferring products from producers to consumers. Non-standardized products, such as custom machine and special models, are sold directly by the company's sales representatives because the middlemen lack the necessary knowledge. Products requiring installation or long-term service are usually sold by companies or exclusive agents. Products with high unit value are generally sold by company salesmen, rarely through middlemen.

2. Marketing channel design

Reflect the advantages and disadvantages of different types of intermediate mechanisms in performing various tasks. For example, it is cheaper for a manufacturer's representative to contact each customer, because the total cost is shared by several principals. However, the sales efforts of business representatives to each customer are lower than those of company sales representatives. Channel design is also restricted by the channels used by competitors.

Channel design must adapt to the big environment. When the economy is depressed, producers always demand to bring their products to the market in the most economical way. Does this mean using shorter channels to cancel some unnecessary services? They will raise the final price of their products. Laws, regulations and restrictions will also affect channel design. American law prohibits all kinds of channel arrangements that may seriously reduce competition or have a monopoly tendency.

3. Determine the choice of main marketing channels

After the company has determined the target market and expected positioning, the next step is to determine its channel selection. The channel selection scheme is determined by three factors: the type of commercial intermediaries, the number of intermediaries, the conditions of each channel member and their mutual responsibilities.

(1) Type of intermediate mechanism

The company should find out the type of intermediary unit that can undertake its channel work. What kind of intermediary agency to use depends on the service output requirements of the target market and the channel transaction costs (for example, wages and expenses, initial investment, insurance, etc.). ). The company must repeatedly choose the channel type that can promote its long-term profit.

(2) the number of intermediate institutions

Companies must decide how many middlemen to use at each channel level. There are three strategies to choose from: exclusive distribution, selective distribution and intensive distribution.

(1) Franchise

Franchising is to strictly limit the number of middlemen who operate the company's products or services. It is suitable for manufacturers to control a large number of service levels and service sales points for distributors. Generally speaking, exclusive dealers no longer operate competitive brands.

As a result of granting exclusive distribution rights, manufacturers hope to get more active and knowledgeable sales. Franchising can improve the image of products and allow higher prices. This requires close cooperation between companies and distributors. This method is often used to sell new cars, some major electrical appliances and some women's clothing brands.

② Selective distribution

Selective distribution uses more than one company, but it does not mean that all middlemen who are willing to distribute operate a specific product. Some reputable companies, or some new companies, use selective distribution to attract dealers. By establishing a good working relationship with the selected middlemen, the company can obtain above-average promotion efforts without spending too much resources to deal with many sales points. Selective distribution can enable producers to obtain sufficient market coverage, and compared with intensive distribution, it has greater control and lower cost.

③ Dense distribution

Intensive distribution is characterized by using stores to sell as many goods or services as possible. When consumers demand to buy locally in large quantities and conveniently, it is very important to implement intensive distribution. This strategy is usually used for convenience items.

4. Evaluate the main marketing channel schemes.

Assuming that the manufacturer has determined several channel schemes, it is necessary to determine which one can best meet the company's long-term goals. Each channel needs to be evaluated by three criteria: economy, controllability and adaptability.

(1) economic standard

Each channel scheme will generate different levels of sales and costs. The first question is whether the sales of the company's sales team is high or the sales of the company's sales team is high. The next step is to estimate the cost of different sales of each channel. The last step is to compare the sales volume with the cost.

(2) Control standards

The evaluation must be further expanded to consider the control of two channels. Using sales agents means that there will be more control problems.

(3) Adaptability standard

In order to develop channels, channel members all promise to maintain the obligation for a certain period of time to some extent. However, due to the manufacturer's ability to respond to the changing market, the duration of its commitment is shortening. In the rapidly changing and uncertain product market, manufacturers need to seek the channel structure and policies that can gain the greatest control to adapt to the ever-changing marketing strategy.

Channel Network Design (I) Factors Affecting Channel Design

1. Customer characteristics. Including the number of potential customers, customers' geographical distribution, customers' purchasing characteristics and customers' purchasing quantity. , have an important impact on channel design.

2. Product features. It mainly includes product price, product quantity, product standardization, product technical performance, product natural attributes, product life cycle, product seasonal strength, product requirements for additional services, product categories, etc. For example, the marketing channels of consumer goods and industrial products are generally quite different, and the choice of marketing channels for consumer goods is often greater, while the channels for industrial products are generally relatively short (see the figure below.

3. Market conditions. Mainly refers to the location of the target market, the channels used by competitors, the scale of market intermediaries, etc.

4. Enterprise factors. The financial resources and scale of enterprises, the management level of enterprises, the desire of enterprises to control channels and the goodwill of enterprises also have different degrees of influence on channel design.

5. Environmental characteristics. Such as political situation, economic situation and legal environment.

(B) the choice of marketing channel strategy

1. General sales channel strategy, also known as extensive sales strategy or intensive sales strategy. Refers to the sales channel strategy for enterprises to choose as many products as possible. Generally applicable to the marketing of convenience products.

2. Selective sales channel strategy. It refers to the marketing channel strategy that enterprises choose some middlemen to sell products. Generally applicable to the marketing of optional products and special crystals.

3. Exclusive sales channel strategy. Also known as exclusive sales channel strategy. Refers to the channel strategy that an enterprise chooses only one middleman to handle products. Generally applicable to the marketing of patented products or goods with brand advantages.

(3) Rights and obligations of channel members

When designing sales channels, enterprises need to stipulate the rights and obligations of channel members, often check and motivate middlemen, and adjust distribution channels when necessary.

1. Price policy. In order to encourage middlemen to purchase goods, or to ensure that enterprises sell enough goods, enterprises can formulate price lists and give different rebates to different purchase quantities. And define the pricing authority of the product.

2. Terms of sale. For middlemen who pay in advance or on time, different discounts can be given according to the payment time.

3. The regional rights of middlemen. The regional distribution right of middlemen should be clearly stipulated in the form of contracts. Enterprises may have special agents in many areas, especially in neighboring areas or in the same area. The middlemen are very concerned about the number of dealers and the size of franchise stores.

4. Who is responsible for the specific services? Such as advertising, financial assistance, personnel training and so on. For the sake of prudence, the specific service content that both parties should provide can be fixed in the form of a treaty.

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