Why should the middlemen be incentivized

The middlemen play the role of bridge and link in the commodity trading activities, so it is necessary to incentivize, because the middlemen in the realization of the immediate benefits of product sales, and ultimately also make the enterprise to obtain the realization of the target benefits.

The necessity of middlemen incentives:

In the developed commodity economy today, many enterprises from the production of products to the consumption of different levels of distribution links, in the field of distribution in the economic activities of the main role is the middlemen, specifically the middlemen here mainly include wholesalers, retailers, agents and brokers and so on. Distribution channels play the role of goods and services from the hands of producers to consumers in the hands of the role of the bridge, the enterprise produced products, through this bridge in order to enter the market, into the consumer field.

It is in all aspects of distribution to create and reflect the customer transfer value, to attract customers to buy the enterprise's products and services. Lenovo's operators to summarize their successful business experience, said: "the product is the foundation of the body, the channel is the foundation of the life". More and more enterprises have found that the distribution channel advantage has been an indispensable competitive advantage. After the establishment of distribution channels, production enterprises should strive to promote and cultivate channel members to establish a good partnership to enhance the operating efficiency of the entire channel, which are inseparable from the daily work of the middlemen's incentives. The purpose of incentives is not to establish a loose, indirect, relatively independent of the interests of the traditional transaction-type channel relationship, but to establish a long-term orientation, two-way interaction, information communication, stability and flexibility, *** with the development of partnership-type distribution channel relationship.

Based on this partner-type distribution channel relationship, in the way of incentives to channel members should be used mainly in direct incentives and indirect incentives combined. On the one hand, through the direct incentives, that is, the use of money and material incentives to stimulate the enthusiasm of the channel members, so as to achieve the enterprise's sales targets; on the other hand, through indirect incentives to help channel members to sales management, in order to improve the efficiency and effectiveness of sales, to stimulate the channel members of the enthusiasm of the channel members, so that the members of the channel and the enterprise together to grow and expand.