What is the type structure and system structure of distribution channels?

The structure of marketing channels can be divided into zero-level channels, first-level, second-level and third-level channels according to the number of middlemen's buying and selling links, and can also be divided into direct 1 channels and indirect channels, short channels and long channels.

1. Length structure

Marketing channels can be divided into zero-level channels, first-level channels, second-level channels and third-level channels according to the number of middlemen's buying and selling links, and can also be divided into direct 1 channels and indirect channels, short channels and long channels.

(1) Zero-level channel, also known as direct channel, refers to the channel type in which products are directly sold by producers to consumers (users) without the participation of middlemen. Direct selling channel is the main type of product distribution channel. Generally, large-scale equipment and technically complex products that need to provide special services are distributed by enterprises through direct sales channels. For example, it is impossible for an airplane to be introduced through a middleman. In the consumer goods market, direct channels also tend to expand. Like fresh goods, have long-term traditional direct selling habits; The wide application of new technology in the circulation field has also promoted the gradual development of mail order, telephone and TV sales and Internet sales, and promoted the development of direct sales of consumer goods.

(2) Primary channels include primary middlemen. In the consumer goods market, this middleman is usually a retailer; In the industrial market, it can be an agent or a dealer.

(3) Secondary channels include secondary middlemen. The typical mode of secondary channels of consumer goods is distribution through wholesale and retail. In the industrial market, these two middlemen are mostly composed of agents and wholesale dealers.

(4) Three-level channels are channel types including three-level middlemen. Some daily necessities with a wide range of consumption, such as meat food and packaged instant noodles, need a large number of retail institutions for distribution, and many retail institutions are usually not the clients of large wholesalers. In this regard, it is necessary to add a professional distributor between wholesalers and retailers to serve small retailers.

According to the hierarchical structure of distribution channels, we can get the concepts of direct channels, indirect channels, short channels and long channels. The longer the channel, the more difficult it is to coordinate and control.

Direct selling channel refers to the channel type in which products are directly sold by producers to consumers (users) without the participation of middlemen. Indirect channel refers to the channel type in which one or more middlemen participate and products are sold to consumers (users) through one or more commercial links. The above-mentioned zero-level channels are direct channels; Primary, secondary and tertiary channels are collectively referred to as indirect channels. In order to facilitate analysis and decision-making, some scholars define primary channels as short channels, and secondary and tertiary channels as long channels. Obviously, short channels are more suitable for selling products (services) in small areas; Long channels can adapt to selling products (services) in a wider range and more market segments.

2. Width structure

According to the number of intermediaries of the same type used at all levels of the channel, the width structure of the channel can be divided. If manufacturers choose more similar middlemen (wholesalers or retailers) to distribute their products, the distribution channels of such products are called wide channels; On the contrary, it is called a narrow channel.

The width of distribution channels is relative. Influenced by factors such as product nature, market characteristics and enterprise distribution strategy, the width structure of distribution channels can be roughly divided into the following three types:

(1) intensive distribution channels. Intensive distribution channels are channels through which manufacturers distribute their products through as many wholesalers and retailers as possible. Intensive channels can usually expand the market coverage, or make a product quickly enter a new market, so that many consumers and users can buy these products anytime and anywhere. Convenience products in consumer goods (such as convenience food, drinks, toothpaste and toothbrushes) and work products in industrial products (such as office supplies) usually adopt intensive channels.

(2) selective distribution channels. Selective distribution channel is a channel through which manufacturers choose several (more than one) similar middlemen to distribute products according to certain conditions. Selective distribution channels are usually composed of powerful middlemen and can be effectively maintained.

Manufacturer brand's reputation, establish a stable market and competitive advantage. Most of these channels are purchases and special products in consumer crystals and spare parts in industrial products.

(3) exclusive distribution channels. Exclusive distribution channels is a channel for manufacturers to choose only one wholesaler or retailer to distribute their products in a certain regional market, while exclusive distribution channels is a narrow channel. Exclusive agency (or distribution) is conducive to controlling the market, and its products and markets have a particularly enhanced product image, which enhances the cooperation between manufacturers and middlemen, simplifies management procedures, and is adopted by manufacturers with diversified characteristics (such as professional knowledge, brand advantages, professional users, etc.). ).

3. System structure

According to the close relationship between channel members, distribution channels can also be divided into traditional channel systems and integrated channel systems.

(1) traditional channel system. The traditional channel system refers to the distribution channel composed of independent producers, wholesalers, retailers and consumers. The architecture among the members of the traditional channel system is loose. Because every member of this channel is independent, they often go their own way and compete fiercely for the maximization of their own interests, even at the expense of the interests of the entire channel system. In the traditional channel system, almost no member can completely control other members. The traditional channel system is facing severe challenges.