What are the distribution channel models?

1, direct channel (directchannel):

Also known as the zero-level channel, meaning that there is no intermediary involved, the product is sold by the producer directly to the consumer (the user) of the channel type. The direct channel is the main type of product distribution channel.

Direct channel scope of application:

Generally large-scale equipment and technically complex products that require specialized services, companies are using direct channel distribution, such as the sale of airplanes is impossible to have an intermediary introduced.

In the consumer goods market, the direct channel also has a tendency to expand. Like fresh commodities, has a long tradition of direct sales habits; new technologies in the circulation of a wide range of applications, but also make the mail order, telephone and television sales and Internet sales methods gradually launched, promoting the development of direct sales of consumer goods.

Advantages of the direct channel: production and marketing meet directly, fewer links, is conducive to reducing circulation costs, timely understanding of market conditions, to facilitate the production of enterprises to carry out maintenance services and so on.

Disadvantages of direct channels: As the production enterprises to run their own sales directly for the user service, so they must bear the sales of all the manpower, material and financial resources required; in the market is relatively decentralized, will make the enterprise on the back of a heavy burden, it will give the enterprise's production and management activities have a negative impact.

2, indirect channel (IndirectChannel):

It refers to the goods from the production field to reach the hands of consumers or users to go through a number of intermediary sales channels, that is, the producer through a number of intermediaries will be resold to the final consumer or user. Indirect channels are the main channels usually used in the sale of consumer goods.

Scope of application of indirect channels:

Indirect distribution channels are mainly used for products produced by small and medium-sized enterprises that lack the ability to export experience, overseas distribution channels and information networks; or face markets with little potential and high risk; indirect channels are generally applicable to consumer goods.

The advantages of indirect channels: the sale of commodities through the specialization of the division of labor to make the work simpler; the intervention of intermediaries, sharing the producer's business risks; with the help of intermediary links, can increase the sales of commodities to increase the coverage of the commodities, is conducive to expanding the market share of commodities.

Disadvantages of indirect channels: Too many intermediate links will increase the operating costs of goods.? Limit the expansion of the ability of domestic enterprises to operate and sell in foreign markets.

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Extended information:

One, the channel selection should be tailored to fit the needs of

Enterprises in the choice of distribution channel mode, in order to strive for the market in the In an advantageous position, we must pay attention to the combination of the enterprise's own multi-faceted advantages, the design of the distribution channel mode and the enterprise's product strategy, pricing strategy, promotional strategy combined to enhance the marketing strategy of the combination of advantages.

In the channel selection, just consider speeding up and reducing costs is not enough, but also consider the channel's product distribution capabilities, consider whether the product can be sold in a timely and accurate manner, consider whether the market share is sufficient to cover the target market.

Two, reverse thinking about the feasibility of channel design

Consumers are enterprises, channels, terminals, the last link of the entire pathway. Channel as a link in the middle of the link, feasibility is one of the important principles of channel design.

Smooth and efficient distribution channel model, not only to allow consumers to be able to buy at the appropriate location, time at a reasonable price to the satisfaction of the goods, but also to improve the distribution efficiency of the enterprise, and strive to reduce the cost of distribution, in order to minimize the cost of distribution, to obtain the maximum economic benefits, to win the competition of time and price advantage.

Three, channel selection can not be "paper"

Enterprise distribution channel model is determined, it will take a lot of manpower, material and financial resources to establish and consolidate the whole process is often complex and slow. Therefore, the enterprise choice of channels must have operability, not as "Zhao Kuo on the art of war" as, on paper, not real.

Four, focusing on the control of the channel

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

/baike.baidu.com/item/%E9%97%B4%E6%8E%A5%E6%B8%A0%E9%81%93/3495468?fr=aladdin "target="_blank "title="Baidu Encyclopedia - Indirect Channel"& gt;Baidu Encyclopedia - Indirect Channels

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