Definition of marketing channel

Marketing channel is a traditional circulation planning task, that is, putting the right amount of products into the right point of sale at the right time and presenting the products to consumers in the target market in an appropriate display way to facilitate consumers' purchase. Includes four parts:

(1) Business flow: generally speaking, it refers to the buying and selling of commodities.

(2) Logistics: refers to the flow of commodities brought about by commodity trading activities.

(3) Information flow: information accompanying the flow of goods, such as what is the fastest-turning commodity? Which products are most interesting to customers? Daily sales and monthly sales, etc.

(4) Capital circulation: refers to the coordinated application of the financial system in the circulation process, such as credit card and bank transfer.

Most manufacturers do not sell their products directly to the final consumers. Between producers and final consumers, there are wholesalers and retailers who buy goods and resell them after obtaining ownership. Brokers, manufacturing representatives and sales agents are responsible for finding customers.

Marketing channel decision is one of the important decisions of enterprises, which will affect other marketing decisions. For example, pricing will change with the adoption of large distributors or high-level entrustment. The company's direct sales personnel are also equipped with different numbers according to the strength of channels. In addition, the company's marketing channel decision is a long-term commitment to other companies and must be observed. For example, after the authorization of marketing regional distribution, the original agreement must be observed.

Marketing channels depend on the combination of external forces, and it takes a lot of time to establish them. It represents the long-term commitment between the company and the middlemen, and also represents the company's choice of a marketing mix strategy. Therefore, when choosing marketing channels, we must pay attention to the trend change of marketing environment and plan the marketing channels of enterprises with a long-term vision.