What are the methods of distribution?

What are the basic methods of distribution

Basic methods of distribution: sales agency Franchising Chain dealership Zero channel marketing

What is a distribution channel and what are the types of distribution channels

A distribution channel is "the pathway through which ownership is transferred, either directly or indirectly, when a product moves from the producer to the final consumer or industrial user." Definition from Kendive and Steele.

Due to the individual consumers and productive groups of users in China to consume different major commodities, the purpose of consumption and purchasing characteristics of the differences, objectively make China's enterprise sales channel constitutes the two basic modes: the enterprise to productive groups of users of the sales channel mode and the enterprise to the individual consumer sales channel mode.

1. Enterprise sales channel mode for productive group users. wholesalers - users, producers - wholesalers - retailers - users, producers --agent--wholesaler--retailer--user

2. Business to individual Consumer sales channel model. There are the following: producer-consumer, producer-retailer-consumer, producer- wholesaler - retailer - consumer, producer - agent - retailer --producer-consumer, producer-agent-wholesaler-retailer --consumers

According to the presence or absence of intermediaries involved in exchange activities, all the channels in the above two models can be summarized into the two most basic types of sales channels: direct distribution channels and indirect distribution channels. Indirect channels are further divided into short and long channels.

(a) direct distribution channels

The direct distribution channel means that the producer will supply the product directly to the consumer or user, without the intervention of intermediaries.

The direct distribution channel is in the form of: producer - user. Direct channel is the main type of industrial distribution. For example, large-scale equipment, special tools and technically complex products that require the provision of specialized services, are used in direct distribution, some of the consumer goods are also used in direct distribution type, such as fresh goods. In recent years, especially since 1988, the proportion of enterprise self-distribution has increased significantly. For example, in 1990, China's steel mills by the self-sales of steel, accounting for 38% of the country's total steel production; automobile to directive plan for sale accounted for only 20.20%.

1. The specific ways of direct distribution channels

The direct distribution of enterprises is more, but summarized as follows:

(1) ordering distribution. It refers to the production enterprise and the user first signed a purchase and sale contract or agreement, in accordance with the terms of the contract within a specified period of time for the supply of goods, delivery of money. Generally speaking, most of the active contact party is the sales of the production side (such as manufacturers to send salesmen), there are also some of the popular products or tight raw materials, spare parts, etc. by the user door-to-door request for goods.

(2) since the opening of the store sales. It refers to the production enterprises are usually set up outside the production area, the user is more concentrated in the place or business district. There are also some neighboring users or commercial areas of the production enterprises will be set up in front of the factory store.

(3) joint distribution. Such as industrial and commercial enterprises, production enterprises to join together for sales.

2. Advantages and disadvantages of direct distribution channels

(1) the advantages of direct distribution channels:

① conducive to the production and demand side of the communication of information, can be produced according to demand, to better meet the needs of the target customers. Because it is face-to-face sales, users can better grasp the performance of the goods, characteristics and methods of use; producers can directly understand the user's needs, purchase and other characteristics and their trends, and then understand the strengths and weaknesses of competitors and changes in the marketing environment, to create the conditions for the production of on-demand.

② can reduce the loss of products in the circulation process. As a result of the removal of intermediate links in the flow of goods, reducing sales losses, and sometimes accelerate the flow of goods.

③ can make the purchase and sale of both sides in the marketing of relative stability. Generally speaking, direct marketing channels for the exchange of goods, are signed contracts, quantity, time, price, quality, service and so on according to the provisions of the contract to fulfill the relationship between the purchase and sale of the two parties in the form of legal in a certain period of time fixed, so that both sides of the energy used in other aspects of the strategic planning.

④ can be directly in the sales process promotion. Enterprise direct distribution, in fact, and often direct promotional activities. For example , the enterprise sent direct sales, not only to promote the user orders, but also to expand the influence of the enterprise and the product in the market, but also to promote the ordering of new users.

(2) the disadvantages of direct distribution channels:

① in terms of products and target customers: for the vast majority of the means of living goods, the purchase of miniaturization, diversification and repetition . Producers who rely on their own strength to set up a wide range of sales outlets, often incompetent, or even contrary to their wishes, it is difficult to make the product in a short period of time, widespread distribution, it is difficult to quickly occupy or consolidate the market, the needs of the enterprise's target customers do not get ......

The distribution model includes which kinds of channel mode?

Distribution model includes traditional distribution channel model, vertical distribution channel model, horizontal distribution channel model, multi-channel distribution channel model. 1. Traditional channel system (model), refers to the distribution channel composed of independent producers, wholesalers, retailers, and consumers. Each member of the channel is a loose partnership, each pursuing its own profit maximization, ultimately making the entire distribution channel inefficient. The traditional distribution channel system, also known as the loose distribution model, as the name implies, the relationship between the channel members is temporary, accidental, and unstable. 2. Vertical channel system, which consists of producers, wholesalers, and retailers vertically integrated, whose members are part of the same company, or members of a franchise, or a company with sufficient control. Each member views itself as a part of the distribution system and is concerned with the success of the vertical system as a whole. Vertical channel systems include three forms: ownership (also known as corporate), contractual, and management. Vertical channel systems are widely adaptable, with 64 percent of consumer products in the United States utilizing such systems. Whether large enterprises, or small businesses, whether daily necessities or industrial supplies, are a large number of vertical distribution channel system. 3. Horizontal channel system, also known as *** raw marketing channel relationship, it refers to two or more companies horizontally combined together, *** together with the development of new marketing opportunities for the distribution channel system. It is characterized by two or more companies horizontally combined *** with the formation of new institutions, to play their respective advantages, to achieve effective and rapid operation of the distribution system, in fact, a horizontal joint operation. The purpose is to play a synergistic effect of resources through the joint or risk avoidance 4. Multi-channel system, refers to the same or different market segments, the use of multiple channels of the distribution system. (It means that a company establishes more than two channels for its distribution activities. Each of the company's channels can realize a certain amount of sales.) Two forms: one is where a manufacturer sells the same trademarked product through more than two competing distribution channels. One is where a manufacturer sells differentiated products with different trademarks through multiple distribution channels.

What does distribution mean? Is there a difference between distribution and agency?

Distribution is actually you to the general agent side of the goods - to help them to sell, of course, you can earn a little profit from it, the most profitable or the general agent side of the factory, but if you are an agent, may be the price of goods must be cheaper than the distributor you go to pick up the goods, and more is the company to provide the preferential activities you can enjoy

Distribution mode is what it means

Point and click the distribution model:

Three distributors ABC, B is the distribution of A, C is the distribution of B, when C's store to generate orders. Single, C can get a rebate X, B can get a rebate Y, A can get a rebate Z, X & gt; Y & gt; Z, and X + Y + Z = supplier preset the total commission, and so on.

If the above is not well understood look at the following:

One: who sells who take the sales of gold, regardless of the distributor level product sales of gold proportion consistent. Distributors can be unlimited fission, but no matter which level of distributors sales of money is the same.

Second: each distributor's lower level sells goods, the upper level distributors can get promotion commission. Promotional overhead of up to two levels.　　Three: The distribution level is three levels, and the maximum number of relationships that can be generated due to sales is three. Everyone can become a distributor in the promotion of the first level, take the first level of promotion of gold.

Hope to adopt!

There are several distribution models for micro-distribution

One level of distribution

Two levels of distribution

Three levels of distribution

Three levels of distribution

Three levels of distribution after the illegal

weifenxiao

Distribution options are what?

Distribution is a new way to expand your online sales channels, and Chopsticks Multi-Store Distribution has this feature.

What are the sales channels

To do a good job of sales, first of all, we need to have a good sales channel, there are a lot of factors when choosing a sales channel, but also to master the channel sales skills, the following information can be referred to.　　　　Sales channel refers to the goods transmitted from the producer to the user's hands through the whole process, as well as the corresponding set of marketing and sales organizations. Correct use of sales channels, you can make the enterprise quickly and timely transfer of products to consumers, to achieve the expansion of commodity sales, accelerate capital turnover, reduce the cost of flow of the purpose. Any enterprise to sell their products smoothly, you need to correctly select the product sales channels. Selection of sales channels has two aspects: one is to choose the type of sales channels, but the choice of specific intermediaries.　　　　Factors affecting the choice of sales channels are: product factors, including the size of the value of the unit of product, product weight and volume of the size of the product, the style and fashion of the product, the product of corruption and perishability, general products approved products, the degree of technical services, new products to make a small; market factors, including the size of the market surface, the user's purchasing habits, the market sales of the seasonal and temporal, the competition's Sales channels, etc.; the enterprise's own factors, including the company's size and reputation, management capabilities and experience, the degree of control of sales channels.　　　　1. Selection of types of sales channels (1) Direct sales strategy and indirect sales strategy. According to whether the goods in the transaction process through intermediate links to categorize, can be divided into two types of direct and indirect sales channels. Direct sales channel is the enterprise to use the production and marketing business mode, that is, the goods from the production field to the consumer field without any intermediate links, indirect sales channel refers to the transfer of goods from the production field to the hands of the user to go through a number of intermediaries sales channel. Direct sales sales in a timely manner, less intermediary costs, easy to control prices, timely understanding of the market, conducive to the provision of services and other advantages, but this method allows producers to spend more investment, sites and manpower, so consumption of a wide range of commodities, the market size, it is not appropriate to use this method. Indirect sales due to the inclusion of intermediaries, enterprises can make use of the knowledge, experience and relationship of intermediaries, thus playing the role of simplifying the transaction, shortening the time of buying and selling, and concentrating human, financial and material resources for the development of production to enhance the sale of goods and so on.　　　　Generally speaking, in the following cases, it is suitable to adopt direct sales strategy: ① market concentration, sales range is small; ② high technology or manufacturing costs and after-sales differences in large products, as well as deterioration or damaged goods, make goods, customized products, and so on. (iii) The company itself should have marketing skills, strong management ability, rich experience, strong financial resources, or need to highly control the marketing situation of the goods.　　　　On the contrary, an indirect marketing strategy is suitable in the following cases: ① The market is decentralized with a wide range of sales, such as most consumer goods. ② `Non-technical or small difference between manufacturing cost and selling price, as well as non-perishable and non-fragile goods, daily necessities, standardized goods, etc.'. (iii) `Enterprises themselves lack marketing skills and experience, have poor management capabilities and weak financial resources, and do not require much control over their goods and marketing.　　　　(2) Long channel and short channel strategies. Sales channel according to its length to categorize, can be divided into a number of different lengths of the form of goods from the production area transferred to the process of the user, after the more links, the longer the sales channel; and vice versa, the shorter. Consumer goods sales channels and four basic types: producer - consumer; producer - retailer - consumer; producer - agent or wholesaler - retailer - consumer; producer - agent - wholesaler - retailer - consumer. There are three basic types of industrial sales channels: producer - industrial user; producer - agent or industrial distributor - industrial user; producer - agent - industrial distributor - industrial user. After an enterprise decides to adopt an indirect sales strategy, it also has to make a choice on the length of the applicable channel. From the requirements of saving the cost of commodity circulation, accelerate the process of social reproduction, should minimize the intermediate links, choose a short channel. But do not think that the fewer intermediate links the better, in most cases, the role of the wholesaler is irreplaceable producers and retailers. Therefore, the use of long channel strategy or short channel strategy, we must take into account the characteristics of the goods, the characteristics of the market, the conditions of the enterprise itself and the effectiveness of the implementation of the strategy. Generally speaking in the following cases are suitable for the adoption of short-channel sales strategy: ① from the point of view of the characteristics of the product, perishable, perishable, expensive, highly fashionable, trendy, after-sales service to be ......

What is direct sales and distribution

What are the similarities and differences between direct sales and distribution:

The term distribution is a concept that we have introduced from the West, and in Western economics, the meaning of distribution is the establishment of sales channels, meaning that the product is sold to consumers through certain channels. From this point of view, any kind of sales method we can call it called distribution. Because the product must be distributed through a certain way in order to reach the hands of consumers, as a modern enterprise, in order to stay in the market competition, we must study all the distribution methods. From the history of the development of distribution, distribution has three basic forms: wholesale, retail and direct sales.

1, wholesale has always been a powerful weapon in the development of enterprise scale, it refers to the enterprise will be the product of planned sales to a number of sales units, departments, outlets, but also a one-time sale of a large number of products to a particular consumer.

2, there are two forms of retail: store sales and store sales. Store sales refers to the sale of products to consumers through a variety of retail stores.

3, no store sales is what we usually call direct marketing, as one of the most traditional distribution methods, the 21st century direct marketing has tended to be combined with experience marketing. The customer's subjective experience as the core of sales experience marketing in the field of direct marketing close to the consumer has a very large space for growth.

The evolution of the three basic distribution methods of wholesale, retail and direct marketing, in the distribution of research to put forward new topics at the same time, but also to the enterprise to change the traditional distribution methods to provide a new way of thinking. Until now, the agency system, chain, direct marketing, direct marketing and experiential marketing combined with the modern enterprise distribution is still the mainstream distribution model of the enterprises competing for practice.

First, the agency, chain and franchise

The agency behavior as one of the mainstream distribution model has long been produced, but as a system, the agency system is a product of the highly developed commodity economy. Usually what we call the agent of business affairs is called business agent, which refers to the profitable business activities in which the agent acts for the agent and receives a commission for the business affairs of the agent. Business agent is a bridge connecting the producer and the market, it can help the producer to open the market quickly, save costs and improve efficiency. In today's business of speed, the agent is undoubtedly the fastest effective way to achieve product coverage.

According to the agent agent authority size, the agent is divided into exclusive agent, general agent and general agent.

1, the exclusive agent refers to the principal to give the agent in a market (may be geographically, product, consumer groups, etc. to distinguish) franchise agent. Geographically divided exclusive agent means that the agent in a region has the exclusive right to represent, this area of sales affairs by its responsibility.

2, the general agent is not enjoy the franchise agent, that is, the manufacturer does not grant the agent in a region, the product of the exclusive agency, agents and agents between the regional division of agents, all agents can collect orders for the manufacturer, no matter what the "agent of the region," in this case, the manufacturer can be direct sales in various places, wholesale products, and therefore is also called a number of agents.

3, the so-called general agent refers to the principal in the designated area and a certain period of time to set up full powers of the agent. General agent agent of a manufacturer of a product in a certain area of sales affairs, while it has the right to designate sub-agents, the right to deal with some of the affairs on behalf of the manufacturer, so the general agent must be the exclusive agent. But the exclusive agent is not necessarily the general agent, the exclusive agent does not necessarily have the power to appoint sub-agents. The advantage of using the agency system is that you can use the agents to expand the market, the disadvantage is that the number of agent levels increase, easy to cause mismanagement.

Second, the chain is one of the most popular business model in the 21st century, it is connected by a number of stores in the same industry to *** with the purchase of goods, etc., *** to enjoy the benefits of scale of a form of business. Chain management is divided into three types: formal chain, free chain and franchise.

1, formal chain, also known as direct chain, is a single capital directly operating a certain number of stores in the organization.

2, free chain, also known as voluntary chain, is by the independent retail stores **** with the joint, unified purchase, unified sales strategy, unified use of logistics and information facilities, thus forming a chain of organizations, which is a form of commercial small businesses to unite against the big capital.

3, franchising is originated in the United States of America's distribution methods, and formal chain sales of products or services are different, franchising is the sale of franchises, the essence of its features is the transfer of intellectual property rights and operations. At present, the vast majority of the world's chain companies are operating in a franchised manner.

Third, direct marketing into the age of experience marketing

Direct marketing is the producer will sell products directly to consumers in the distribution method. In this sense,......