Traditional Culture Encyclopedia - Traditional virtues - Shortcomings of traditional distribution channels

Shortcomings of traditional distribution channels

Advantages: Wide market coverage and more opportunities for buyers to contact products. For enterprises that have just started to engage in export business, this strategy can help them quickly open up the situation, and can comprehensively evaluate the work efficiency of these middlemen, choose the middlemen with high efficiency to continue to sell products for themselves, and at the same time eliminate the ones with low efficiency, which is conducive to the competition among middlemen and continuously improve the efficiency of commodity sales.

Insufficient: Not suitable for small regional markets. Lack of management control over middlemen.

Advantages: it can save expenses and improve marketing efficiency; Production enterprises can maintain the reputation of enterprises and products and control the market by optimizing middlemen; When the production enterprise lacks the experience of international market operation, it chooses several middlemen to conduct tentative sales at the initial stage of entering the market, and adjusts the marketing strategy to reduce the sales risk after the enterprise has accumulated certain experience or other conditions.

Shortcomings: it is difficult for enterprises to achieve a variety of business objectives under the relaxed marketing environment; The channel lacks sufficient adaptability to non-optional products; Enterprises should provide more services for the selected middlemen and bear certain market risks.

Advantages: it is conducive to controlling marketing and improving the enthusiasm of middlemen; Work closely with middlemen and get a lot of assistance in promotion; Improve the operational efficiency of production enterprises, save costs and reduce sales costs; Improve the service quality of middlemen to customers; Eliminate competitive products from entering the same market and improve the international competitiveness of enterprises.

Relying too much on middlemen, the market coverage is narrow; This policy means giving up some potential customers, and the channel width is extremely limited, which makes it difficult for enterprises to adapt and expand sales.