MindMap Gallery Project 6 Selection of Distribution Channels
"Marketing Fundamentals" (5th Edition) of the Secondary Vocational School refers to all enterprises and individuals that acquire the ownership of goods and services when they move from producers to consumers or help transfer their ownership.
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Avatar 3 centers on the Sully family, showcasing the internal rift caused by the sacrifice of their eldest son, and their alliance with other tribes on Pandora against the external conflict of the Ashbringers, who adhere to the philosophy of fire and are allied with humans. It explores the grand themes of family, faith, and survival.
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Item six Select distribution channels
Module 1 Distribution channel
1.1 The meaning of distribution channels
Refers to all businesses and individuals that acquire ownership of goods and services when they move from producers to consumers, or help transfer their ownership.
1.2 Functions of distribution channels
1. Realize the transfer of ownership
2. Adjust surplus and shortage to balance supply and demand
3. Simplify transactions and improve efficiency
4. Realize the transmission of information and the adjustment of working capital
5. It is helpful for enterprises to develop markets and promote sales.
The basic function of distribution channels is to realize the transfer of products from producers to consumers and users.
1.3 Types of distribution channels
1. Direct distribution channels and indirect distribution channels
According to the product in the sales process Have you gone through the middleman process?
①Direct distribution channel (no middlemen) The main channel for selling goods in the producer market. Most machinery and equipment, raw materials and parts (components) and components use this method.
②Indirect distribution channel (with middlemen) Main channels for distribution of consumer goods
2. Long channels and short channels
According to the commodity circulation process The number of middlemen involved
①Short channels-----higher-priced household appliances, personal computers, brand-name clothing, cars and other valuable commodities
②Long channels-----most daily necessities, food and beverages, ordinary clothing, standard parts
3. Broad channels and narrow channels
According to the commodity circulation process The number of middlemen at the same level
①Wide channels: The company uses many similar middlemen, and the products are widely distributed in the market. eg. General daily consumer goods (towels, toothbrushes, water bottles, etc.)
② Narrow channels: Enterprises use few similar middlemen and have narrow distribution channels. They are generally suitable for highly specialized products or expensive and durable consumer goods.
Module 2 Distribution channel selection
2.1 Factors affecting the choice of distribution channels
1. Product factors
2. Market factors
3. Factors of the production company itself
(1) Financial capacity
(2) Sales ability
(3) The level of service that may be provided
(4) Delivery limit
4. Environmental characteristics
5. Competitor factors
2.2 Distribution channel selection strategy
1. Choose a direct distribution channel strategy
(1) Sales in self-operated stores
①Enterprise investment and establishment
②Purchase an existing store with full capital
③Purchase part of the equity of existing stores
④ Rental store
a. The enterprise has direct control over its self-operated stores, which facilitates operation and management, and can implement the company's marketing concepts, policies and policies in a timely and accurate manner; b. Self-operated stores face consumers directly, providing first-hand market information for the company’s decision-making; c. Self-operated chain stores can effectively display the company’s strength, improve corporate brand awareness, reputation and the company’s overall strength; d. For products that are small in size and light in weight, products that customers require to see and purchase, and products that need to be promoted through product display, self-operated store sales are a better form.
(2) No store sales
①Direct selling, direct marketing
Different payment methods
single level direct selling
multi-level direct selling
②Vending machine
Advantages: a. Open 24 hours a day, giving consumers great convenience b. Due to the realization of unmanned sales, a large amount of labor can be saved and circulation costs can be reduced.
Limitations: Only suitable for selling goods and services with uniform specifications, guaranteed quality, certain prices, and timely consumption.
(3) E-commerce
2. Choose an indirect distribution channel strategy
(1) Market scope of middlemen
(2) Product policies of middlemen
(3) The geographical location of the middleman
(4) Product knowledge of middlemen
(5) The expected degree of cooperation of the intermediary
(6) The financial status and management level of the middleman
(7) Policies and technologies of middlemen
(8) Intermediary service capabilities
3. Choose a channel terminal strategy
(1) Factors affecting the choice of channel terminal strategy
①Choose based on consumer income and purchasing power level
②Select according to the location where target customers appear.
③Choose based on customer purchasing psychology
④Select according to competitive needs
⑤Select according to sales method
(2) Optional channel terminal strategies
①Exclusive distribution strategy
②Universal distribution strategy
③Selective distribution strategy
Module 3 Distribution channel conflict
3.1 The meaning of distribution channel conflict
1. The concept of distribution channel conflict
Distribution channel conflicts refer to various contradictions and disharmony among channel members due to interest relationships. Channel conflict is a direct, opponent-centered dispute, hostility, and retaliatory behavior between channel members that is influenced by personal emotional factors.
2. Root causes of distribution channel conflicts
(1) Inconsistent goals
(2) Inconsistent interests
(3) Unclear division of labor
(4) Communication barriers
(5) Differences in market perception among channel members
3. Basic types of distribution channel conflicts
(1) Horizontal channel conflict
(2) Vertical channel conflict
(3) Conflicts between different channels
3.2 Manifestations of conflicts in distribution channels (cross-selling)
1. Reasons for cross-selling goods
(1) The price system is confusing
(2) Convenient sales settlement
(3) Sales target is too high
(4) Improper incentives for channel members
(5) Improper use of marketing expenses
(6) Other reasons
2. Analysis of the hazards of cross-selling goods
(1) Disrupt market prices
(2) Leading to a decline in profits of manufacturers and affecting corporate decision-making analysis
(3) Destroy the enthusiasm of dealers, cause channel conflicts, and affect the entire channel relationship.
(4) Cross-selling goods characterized by low prices provide space for counterfeit and shoddy goods, affecting consumer confidence.
(5) Affect channel control and corporate image, reduce brand loyalty
3. Prevention and handling countermeasures for cross-selling goods
(1) Choose a good dealer
(2) Create a good sales environment
① Develop a scientific sales plan
② Reasonably divide sales areas
(3) Develop a sound sales policy
①Improve price policy
②Improving promotional policies
③Improve franchise policy
(4) Adopt effective strategies to prevent cross-selling goods
① Develop reasonable reward and punishment measures
②Establish a supervision and management system
③Reduce channel development personnel’s participation in channelized goods
④ Cultivate and improve dealer loyalty