How to design the channel?

The main factors affecting channel design are

(1) Customer characteristics: Channel design is deeply influenced by the number of customers, geographical distribution, purchase frequency, average purchase quantity and other factors.

(2) Product features: Large quantities of products are often sold through middlemen; In order to expand sales, direct sales channels should be adopted for goods with fast changes in styles and styles to avoid unnecessary losses; Depressed products should compress marketing channels.

(3) Competitive features: Manufacturers avoid using the same distribution channels as competitors. If competitors use and control traditional channels, manufacturers should use other different channels or channels to promote their products.

(4) Environmental characteristics: The environmental factors that affect the channel structure and behavior can be summarized as social and cultural environment, economic environment and competitive environment.

Extended data

Channel design should first consider the length and structure of the channel, that is, the channel level at which products reach customers from manufacturers (companies). The longer the channel length, the higher the transaction cost and the higher the product sales price, which is not in line with the interests of the company, distributors and customers. Therefore, channel flattening has become the goal of many companies' transformation.

The most ideal mode of flattening is the company's independent operation, compared with other operations, that is, dealer operation. Self-management and other modes have their own advantages and disadvantages. Self-management can strengthen the control of outlets and quickly obtain first-hand market information. The disadvantage is that it needs to directly occupy funds and necessary management costs; The advantage of other businesses is that they can reduce the company's business risks without too much capital investment, but the disadvantage is that the company's control over outlets is weak.

Secondly, the channel model design should solve the problem of channel width structure, that is, how many middlemen are selected at the same distribution level, the more the number, the wider it will be, and vice versa. The design of channel length and width basically establishes the channel framework structure of the company, which is the general method of channel construction.

Through the above methods, the company makes possible choices on the channel grade, the type and quantity of channel length and width before determining the primary selection scheme. Next, the evaluation and optimization of various schemes are very important, and three principles should be followed to evaluate the advantages and disadvantages of channel models:

First, the principle of economy, the company should evaluate and measure the cost and sales level of different channel construction schemes to be selected in order to find the most economical and applicable channel planning scheme.

The second is the control principle, that is, the selected channel mode must be conducive to enhancing the control ability of the channel. Only by effectively controlling channels can we ensure that the market develops according to the established goals. Although self-built channels can control channels to the maximum extent, the cost is very high; On the contrary, if wholesalers are used, it means that more control problems will arise.

The third is the principle of adaptability, because the cooperation between channel members often has a certain degree of commitment in a specific period, but the changes in the market will affect the adaptability and cooperation foundation of the company.

Therefore, in the rapidly changing market, companies need to seek the channel structure and policies that can gain the greatest control to adapt to the ever-changing marketing strategy.

Baidu Encyclopedia-Marketing Channel Design