Advantages of botanists' traditional distribution channels

Distribution channel strategy refers to the path selection activities and management process carried out by enterprises in order to make their products enter the target market. It is related to where, when and by which organization the enterprise provides goods and services to consumers. Enterprises should choose economic and reasonable distribution channels to send goods to the target market. The factors of distribution channels include the length and width of channels, the choice of middlemen and the analysis, evaluation and transformation of distribution channels.

Different products are suitable for different distribution channels, and many product characteristics have an impact on channels: products that are not easy to preserve (such as perishable seafood) need direct channels; Large products (such as building materials) should not be transported too far and resold too frequently; Non-standard products (such as customized machinery and equipment and business forms, etc.). ) Generally, companies sell directly as agents, because middlemen lack the necessary professional knowledge; Products that need to be installed and maintained are generally sold by franchisees of enterprises; Products with high unit value are often sold directly by the sales team of enterprises.

Different middlemen have different abilities in communication, negotiation, warehousing, communication and credit when performing distribution tasks, and each has its own advantages and disadvantages. When designing distribution channels, we should fully consider the characteristics of different middlemen.

For example, when an agent represents multiple manufacturers at the same time, the cost of product distribution is shared by these manufacturers, so the total unit sales cost of each manufacturer will decrease. The sales efforts made by agents for various manufacturers are also shared like the cost of sales, and the sales effect is declining. For example, supermarkets basically do not provide services, customers can choose freely and do not deliver goods, while department stores try their best to provide perfect services.