What are the reasons for enterprise channel switching?

Enterprises also have different competitive situations in different product life cycles, different product categories and different consumption periods. All kinds of realistic motives require enterprises to switch channels, especially when there is channel conflict, cost control, channel mode change and market expansion. So what are the reasons for the channel conversion of enterprises?

The reason of enterprise channel conversion: from channel conflict.

Since the appearance of marketing, channel conflicts have never stopped, especially in the period of reform in the circulation field, the decline of small-scale scattered traditional channels, the rise of large-scale intensive circulation methods such as chain and franchise, the rapid development of professional middlemen and the great changes in the marketing environment have led to the turmoil of enterprise channels. Enterprise channels tend to be in direct contact with end users, shifting their attention from middlemen to end users, which may be rejected by middlemen. However, most enterprises are weak in channel centripetal force, unable to deal with channel problems, and channel conflicts are inevitable. At this time, the first choice for enterprises is to strengthen channel controllability, jump out of the shackles of a single channel, analyze existing and potential channels, and realize channel conversion.

The reason of enterprise channel switching: it comes from the control of channel cost.

Cost control is the first problem to be considered in enterprise production and operation. However, the cost control of enterprises has always focused on the inside of enterprises, ignoring the control of channel costs, leading to rising channel costs. The reason lies in the field of circulation. No matter how poor, you can't be poor. The point of view. In essence, from the perspective of cost management, ignoring channel cost means that enterprises have not fully considered the competitiveness of the whole system, and the benefits brought by channel improvement will far exceed the cost compression within enterprises. Many enterprises, especially large enterprises, are aware of the problem, and under the realistic motivation, they begin to strengthen channel cost control, adjust channels, change strategies and shorten the sales channel chain.

The reason of enterprise channel conversion: from the new channel model.

There are many insurmountable defects in the traditional closed channel model, such as unreasonable channel layout and incomplete industry market coverage; Multi-layer channels can not accurately and timely feedback information, resulting in a waste of personnel and time resources; Extensive channel management can not effectively implement the sales policy of enterprises, which hinders the efficiency of product circulation. With the change of market situation and the deepening of product line, enterprises realize that the traditional long-channel and intensive distribution mode should be replaced by short-channel and narrow-channel considering the interests of end users, and the channels should be accelerated, broadened and more effective through switching decisions.

The reason for enterprises to change channels: it stems from the need to expand market share.

In order to expand market share, enterprises usually introduce new products and promote channel upgrading through product upgrading. For the management decision of expanding market share, it is difficult for the original channels of enterprises to achieve ideal results. At this time, the enterprise will investigate the adaptability of the existing channel to the sales and promotion of new products on the basis of investigation, analysis and evaluation. If it doesn't match, redefine the service object and market scope, adjust the channel members and develop new channels from the circulation characteristics of new products.