What kinds of channels are there and what are their advantages and disadvantages?

Also known as zero-level channel, it 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.

Scope of application of direct 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.

Advantages of direct selling channel: direct meeting of production and marketing, few links, which is conducive to reducing circulation costs, timely understanding of market conditions, and facilitating production enterprises to carry out maintenance services.

Disadvantages of direct sales channels: As the production enterprises operate their own sales and directly serve users, they must bear all the manpower, material resources and financial resources needed for sales; In the case of relatively dispersed market, it will bring a heavy burden to enterprises and adversely affect their production and business activities.

2, Indirect Channel (indirect channel):

It refers to the sales channel for goods to reach consumers or users from the production field, that is, producers resell their products to final consumers or users through several middlemen. Indirect channel is the main channel usually used in consumer goods sales.

Scope of application of indirect channels:

Indirect distribution channels are mainly used for products produced by small and medium-sized production enterprises that lack export experience and ability and have no overseas distribution channels and information networks; Or face a market with little potential and great risks; Indirect channels are generally applicable to consumer goods.

Advantages of indirect channels: simplifying commodity sales through specialized division of labor; The intervention of middlemen shares the operational risks of producers; With the help of intermediate links, the coverage of commodity sales can be increased, which is conducive to expanding the market share of commodities.

Disadvantages of indirect channels: too many intermediate links will increase the operating cost of goods. ? It limits the expansion of domestic enterprises' sales ability in foreign markets.

Extended data:

First of all, the choice of channels should be suitable for personal circumstances.

When choosing the distribution channel model, enterprises should pay attention to combining their own advantages in many aspects, and combine the design of distribution channel model with the product strategy, price strategy and promotion strategy of enterprises to enhance the combined advantages of marketing strategies.

In channel selection, it is not enough to only consider speeding up and reducing fees, but also consider the product distribution ability of the channel, whether the products can be sold in time and accurately, and whether the market share is enough to cover the target market.

Second, reverse thinking about the feasibility of channel design.

Consumers are the last link in the whole channel of enterprises, channels and terminals. As the link of the whole link, the feasibility of channel design is one of the important principles.

Smooth and efficient distribution channel mode can not only enable consumers to buy satisfactory goods at reasonable prices at appropriate places and times, but also improve the distribution efficiency of enterprises, strive to reduce distribution costs, obtain maximum economic benefits at the lowest possible distribution costs, and win competitive time and price advantages.

Third, channel selection cannot be "on paper"

Once the distribution channel model of an enterprise is determined, it needs a lot of manpower, material resources and financial resources to establish and consolidate, and the whole process is often complicated and slow. Therefore, the channels chosen by enterprises must be operable, and they cannot be empty talk and flashy like Zhao Kuo's On the Art of War.

Fourth, pay attention to the controllability of channels.

In the market, various factors affecting distribution channels are always changing, and some original distribution channels will inevitably have some unreasonable problems. In this case, the distribution channel needs to have a certain adjustment function to adapt to the unpredictable changes in the market and maintain the adaptability and vitality of the channel.

Baidu Encyclopedia-Indirect Channel

Baidu encyclopedia-direct channel