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What are distributors and agents?

What is a dealer? A dealer means someone who takes money and buys goods from a company. They buy the goods not for their own use, but to resell them. Oreo ice cream recommends. For them, they just pass the goods. Just reselling, they focus on the spread, not the actual price. The company did not sell them on credit, but received the money. This business refers to a merchant, that is, a commercial unit. Therefore, "dealer" is generally an enterprise, and is used to refer to a commercial unit that takes money from the enterprise to purchase goods. What is an agent? An agent is a completely different concept from a dealer. Agency is to handle business on behalf of a company. It does not buy out the company's products, but is a business behavior in which the manufacturer gives a quota. The ownership of the goods belongs to the manufacturer, not the merchant. They also do not use the products themselves, but resell them on behalf of companies. Therefore, "agent", ice cream franchise recommendation, generally refers to an enterprise, a commercial unit that earns enterprise agency commissions. What is a Distributor? With the concept of wholesale falling out of fashion, the fashionable concept is distribution. The so-called distribution means selling in separate units. It can be seen that during the sales process, the situation of the next home has been taken into consideration. It is not a blind sale, but a planned sale. The merchant has the concept of service terminal. Distribution and wholesale are relative and define merchants from the perspective of management and planning. Therefore, "distributors" are generally enterprises, fitness club franchise recommendations, and are used to refer to merchants with service terminal awareness. Additional content: The concept of franchising 1. The concept of franchising Franchise (chain) is probably the most popular in today's business world words. Companies that carry out franchise business are also found in every corner of various industries. So, what is franchising? What are the benefits of franchising? Why is franchising successful? If you don’t understand these issues, you will not do a good job in franchising. 1. International Franchise Association’s explanation of franchising: Franchising is a contractual relationship between the franchisor and the franchisee. According to the contract, the franchisor provides a unique business franchise to the franchisee and provides guidance and assistance in personnel training, organizational structure, business management, product procurement, etc. The franchisee pays the franchisor corresponding fees. Generally speaking, franchising is a business model for the franchisor to expand its business and sell goods and services. 2. Characteristics of franchising (1) Franchising is a business model that uses its own brand, proprietary technology, business management model, etc. to combine it with other people's capital to expand its business scale. For the franchisor, franchising is the expansion of technology and brand value, the cloning of the business model rather than the expansion of capital. (2) Franchising is a win-win business model. Franchising can only continue if the franchisor can achieve more efficient development than if he operated alone, and if the franchisee could obtain more benefits than if he operated alone. (3) Franchising is an intelligent business organization form. Franchising enables franchisees to fully combine and utilize their own advantages and absorb a wide range of social resources to the greatest extent, while franchisees reduce entrepreneurial risks and costs such as time and capital. In short, franchising is a new trend in store opening and entrepreneurship in the 21st century. It is a new driving force for future social and economic development. It will bring new entrepreneurial opportunities and profit prospects to many entrepreneurs. 2. Success rate of franchising operations In September-October 1997, a Gallup survey showed that more than 90% of franchisees said that their franchising operations could be considered successful or very successful. Among them, 18% exceeded expectations, 48% met expectations to a large extent, and 24% basically met expectations. Two-thirds of those surveyed believe that they would not have been as successful if they had started the same industry alone. Almost 2/3 said they would buy or invest in the same franchise if given the opportunity again. Practical surveys have proven that the success rate of joining a business is 95.5%, while the success rate of starting a business alone is 4.5%. 3. Advantages of franchising 1. Since the brands, trademarks, and management techniques owned by the headquarters can be directly used, compared with starting your own business, you will be less burdened in terms of time, money, and spirit. For a complete franchise, For those who have no business experience, they can enter the industry in a relatively short period of time. 2. An excellent headquarters, in order to improve the goodwill of the entire chain enterprise, will develop original and high value-added products at any time, and lead competitors with product differentiation. Franchise stores do not need to set up their own development departments. 3. Since the headquarters coordinates and handles promotions, purchases, and even accounting affairs, franchise stores can concentrate on sales without any distractions.

4. Since franchise stores have inherited the goodwill of the chain system, they give customers reassurance. They will feel familiar with newly opened stores or unfamiliar stores, and even deal with language barriers and language barriers that new immigrant franchise store owners are worried about. Issues such as living habits can be protected under the same sign. 5. If you start your own business, there may be various difficulties in purchasing goods and raw materials. However, due to the large-scale production and customization of the headquarters, franchise stores can even buy equipment, dining tables, chairs, miscellaneous equipment, etc. at a low price. . 6. Pre-employment training and other work before opening can be assisted by the headquarters. After opening, there will be people to provide various guidance regularly. 7. If you start your own business, if a competitor appears, you will have to fight alone to deal with it. The franchise store will have the backing of the headquarters as support; 8. If you start your own business, you must decide where to open the store yourself, and you often have no idea whether the location is good or bad. There is no confidence; franchise stores can have headquarters consultation, site condition assessment, and even head office help in site selection. 9. Since the headquarters conducts market research on the surrounding environment at any time, including changes in customer structure and consumption tendencies, franchise stores can take corresponding measures as early as possible. 10. The success of the franchise store is the success of the headquarters, which also means helping the headquarters expand the market. Therefore, the headquarters provides reward systems and benefits to franchise stores with good performance. Today’s industrialized products have gone through market research, product design, research and development, and production. , marketing, sales and after-sales service. The process from product production to user purchase relies on external resources to complete the sales and service process of goods. This process is called distribution management. Distribution network is an organization that makes full use of dealers' resources to sell goods. It is a bridge connecting manufacturers and customers. Distribution management requires external resources such as customers, sales, funds and media. Generally speaking, customer resources are the most important resource among them. However, the specific situation still needs to be analyzed in detail. In fact, the most scarce resources are the most important resources. Manufacturers must evaluate the dealer's resources based on their own resource conditions to select the most appropriate resources. For most companies that rely on distribution as their main sales channel, distributors are not only their partners, but also the forefront of their marketing, sales, and services. Therefore, being able to understand the operation of distributors in a timely manner and provide stable and necessary cooperation is what every manufacturer expects. However, due to the inconsistent development of information technology, many exchanges of information still require a lot of manual intervention. As a result, companies cannot accurately understand the business and financial information of distributors. As a result, companies often cannot effectively determine the production scale and goods. The delivery time will lead to inventory backlog, affecting the normal turnover of funds and even the decision-making and strategic deployment of the entire enterprise. When all these contradictions become bottlenecks that restrict the development of an enterprise, necessary measures must be taken to overcome the bottleneck. Therefore, distribution management is very important in the enterprise management process. There are many distribution business models in distribution management, including: channel structure, sales methods, settlement methods, storage and transportation methods, training systems, advertising, promotion methods, etc. People often rarely emphasize the business model. The focus of the work is how to sell goods to dealers, but the consequence of little emphasis on the business model is to hoard goods to dealers and block access. In order to save money, dealers have no choice but to sell goods, which will inevitably disrupt the manufacturer's price system. Cold drink franchise recommendation. Therefore, if you want to occupy the market for a long time, you must consider the interests of consumers, dealers, manufacturers, etc., and building a sound network starts with the business model. Figure 1. Distribution business model illustrates the specific forms of various business models in detail. 1. The concept of distribution management With the continuous expansion of corporate business, business outlets have spread all over the country. There are many problems in the company's existing distribution channels using traditional methods such as manual, telephone, and fax: the corporate headquarters cannot monitor the operating status of branches, offices, and business outlets in real time; the data and information feedback such as ordering, sales, and inventory are insufficient. In a timely manner, product backlogs and shortages often occur; the collection of transaction documents and operating data is seriously lagging behind and has poor accuracy, which is not conducive to statistics, analysis and processing; customer needs and market information are not fed back to the headquarters in a timely manner, making it difficult for enterprises to formulate production forecasts and product allocations There are many major blindnesses in planning, and business decisions lack accurate data and information support, etc. Therefore, distribution management is very necessary, so what is distribution management? Today's industrial products have gone through seven stages: market research, product design, research and development, production, marketing, sales and after-sales service.

The process from product production to user purchase relies on external resources to complete the sales and service process of goods. This process is called distribution management. Distribution network is an organization that makes full use of dealers' resources to sell goods. It is a bridge connecting manufacturers and customers. Distribution management requires external resources such as customers, sales, funds and media. Generally speaking, customer resources are the most important resource among them. However, the specific situation still needs to be analyzed in detail. In fact, the most scarce resources are the most important resources. Manufacturers must evaluate dealers' resources based on their own resource conditions to select the most appropriate resources. For most companies that rely on distribution as their main sales channel, distributors are not only their partners, but also the forefront of their marketing, sales, and services. Therefore, being able to understand the operation of distributors in a timely manner and provide stable and necessary cooperation is what every manufacturer expects. However, due to the inconsistent development of information technology, many exchanges of information still require a lot of manual intervention. As a result, companies cannot accurately understand the business and financial information of distributors. As a result, companies often cannot effectively determine the production scale and goods. The delivery time will lead to inventory backlog, affecting the normal turnover of funds and even the decision-making and strategic deployment of the entire enterprise, as well as the enterprise switchboard management system. When all these contradictions become bottlenecks that restrict the development of an enterprise, necessary measures must be taken to overcome the bottleneck. Therefore, distribution management is very important in the enterprise management process. 2. Distribution business model There are many distribution business models in distribution management, including: channel structure, sales method, settlement method, storage and transportation method, training system, advertising, promotion methods, etc. Several parts. People often rarely emphasize the business model. The focus of the work is how to sell goods to dealers, but the consequence of little emphasis on the business model is to hoard goods to dealers and block access. In order to save money, dealers have no choice but to sell goods, which will inevitably disrupt the manufacturer's price system. Therefore, if you want to occupy the market for a long time, you must consider the interests of consumers, dealers, manufacturers, etc., and building a sound network starts with the business model. Figure 1. Distribution business model illustrates the specific forms of various business models in detail. 3. Elements of distribution system In distribution management, distribution system is a very important concept. It includes six elements, namely cost, capital, control, market coverage, characteristics ( character) and continuity. In English, these six factors all begin with the letter "C", so some people call it the "Six Cs of Channels". Analysis of these six "C's" is the foundation of a distribution system. Cost The first thing to consider when formulating a distribution strategy is cost. The cost of a distribution system consists of two parts. One is the development cost, including investment in fixed equipment and research expenses. The second is maintenance costs, including equipment rental, 8 yuan Korean women's clothing, vehicle fuel consumption, personnel wages and other variable costs. Some systems have low development costs but high maintenance costs, while others, on the contrary, require huge investments in the early stages of development but have very low maintenance costs in the later stages. Enterprises should weigh these two costs from a long-term development perspective when choosing a distribution system. Capital Companies have different funding requirements and cash flow options to consider when choosing a distribution system. For example: if you are establishing your own distribution system, it generally requires a large amount of capital investment; distributing products through intermediaries usually does not require the company to invest cash. Agents generally do not require the company to carry out cash flow before selling goods, but often require subsidies in the initial stage. "Control" refers to the company's ability to control distribution channels. If the company has strong control capabilities, it can better manage its sales staff, understand changes in market demand, and sell its products and services in a more effective way. . Although it requires a large investment for a company to set up its own distribution system, it can ensure the company's control over the distribution channel. The longer the distribution channel, the weaker the company's control over prices, sales, promotion methods, and sales methods. There are two ways to control distribution channels. One is to establish your own distribution organization close to customers, and the other is to shorten the distribution channels as much as possible. The specific choice depends on the company's capital and management capabilities. Market coverage The three-level goal of market coverage. : Achieve target sales volume; achieve target market share; obtain satisfactory market penetration rate.

Sometimes due to various reasons, enterprises cannot achieve the above three goals at the same time, but always focus on one and lose the other. At this time, the company needs to prioritize these three goals and clarify which one is the most important core goal for the company's long-term development. For example, due to limited channels and funds, some companies are not required to take into account all markets in the actual marketing process, but instead strengthen market penetration in densely populated areas. Characteristics The characteristics mentioned here include company characteristics and target market characteristics. The former is mainly the nature of the product, such as physical properties, technical content, etc. It also includes other company-related content other than the product, such as the company's size, reputation and financial status, etc. . These properties determine what sales channels are suitable for the company. For example, insurance products require short-channel sales, while standardized products can be sold through long-term channels. For another example, high-end cosmetics are suitable for sale in department stores or cosmetics stores with elegant shopping environments. Target market characteristics include customer characteristics, intermediary characteristics and competitor characteristics. If the customer's purchase quantity is small and the purchase frequency is low, the company should use longer distribution channels. Factors such as whether the middleman bears storage and transportation costs and advertising costs should also be taken into consideration. In addition, the company should determine its own channel strategy based on the situation of its competitors. Continuity In fact, what needs to be considered here is the life of the distribution channel, that is, which distribution methods should be chosen to ensure the smoothness and stability of the sales channel. To avoid disruption in distribution channels, companies must build a strong brand to prevent middlemen from switching to other businesses. 4. Conclusion In distribution management, by helping enterprises establish a distribution system with clearly defined responsibilities and rights and controllable processes, true e-commerce information management can be achieved. Moreover, by comprehensively recording the business data, transaction documents, commodity inventory and other information generated in the company's business operations, it helps the company to: obtain business data from various locations in real time and accurately, so that the headquarters has a clear understanding of the business activities of the distribution network. , provide direct and useful decision-making support for business managers; strengthen inventory control and replenishment capabilities, speed up product turnover, 9 yuan children's clothing franchise recommendation, improve capital turnover rate; provide timely feedback and analysis of customer opinions, and improve products and services in a more targeted manner services to improve customer satisfaction; optimize the company's internal and external business management processes; distribution outlets and departments realize interactive information exchanges efficiently and timely through information communication channels, and achieve the collaborative work goals of distribution outlets and headquarters at low cost. Greatly improve the efficiency and quality of information communication; strengthen collaborative work and management capabilities with agents, etc. Therefore, distribution system management can enable enterprises to have strong macro-control capabilities in supply chain management and provide customers with complete Comprehensive management functions for transactions, goods, funds, bills and other information. It reduces manual business processing and promotes information sharing among various departments, which is of great significance for enterprises to achieve customized production based on demand, reduce inventory, and improve competitiveness. Distribution: The so-called distribution refers to a series of activities involved in the delivery of products from manufacturers to consumers. The carrier of distribution activities is the distribution channel, which refers to the entire channel through which products or services flow from producers to consumers (users). This channel is usually composed of manufacturers, wholesalers, retailers and other auxiliary institutions. They perform their respective functions in order for the products to reach corporate users and final consumers, and work together to effectively meet market needs. Distribution is a special and comprehensive form of activity in logistics. It is a form that closely combines business flow and logistics. It includes business flow activities and logistics clean movements, and also includes several functional elements in logistics. From the perspective of logistics, distribution includes almost all logistics functional elements and is a microcosm of logistics or the embodiment of all logistics activities in a small area. General distribution integrates loading, unloading, packaging, storage, and transportation. Through this series of activities, the purpose of delivering goods is achieved. Special distribution is also supported by processing activities, so it covers a wider range of aspects. However, the main activity of distribution is different from that of general logistics. General logistics is transportation and storage, while distribution is transportation, sorting and distribution. Sorting and distribution is a unique requirement of distribution, and it is also a characteristic activity in distribution. Transportation for the purpose of delivery is the main means to achieve distribution. Starting from this main means, distribution is often simply regarded as a kind of transportation. In terms of business flow, the difference between distribution and logistics is that logistics is the product of separation of commodities, while distribution is the product of the integration of commodities. Distribution itself is a business form.

Although distribution is sometimes implemented in the form of separation of goods, judging from the development trend of distribution, the increasingly close integration of business flow and logistics is an important guarantee for the success of distribution. --Invincible dividing line--- As the concept of wholesale becomes outdated, the fashionable concept is distribution. The so-called distribution means selling in separate units. It can be seen that during the sales process, the situation of the next home has been taken into consideration. It is not a blind sale, but a planned sale. The merchant has the concept of service terminal. Distribution and wholesale are relative and define merchants from the perspective of management and planning. Therefore, "distributor" is generally an enterprise, and is used to refer to a businessman with a sense of service terminal. Distribution management system is a highly intelligent enterprise distribution business solution based on business process optimization and with sales and inventory comprehensive control management as the core, integrating purchasing, inventory, sales, promotion management, finance and corporate decision-making analysis functions. It is suitable for use by various types of enterprises with multi-location distributed distribution networks. Their branches and dealers are the main executors of system operations. Consumer goods companies with cross-regional management needs will be the biggest beneficiaries of this system (such as IT electronics Products/communication industry/electrical appliance industry/daily chemical industry/food industry/clothing industry, etc.). The core of distribution management is division of labor. The traditional distribution model is manufacturer?dealer?second batch merchant?terminal?consumer. The entire marketing network is arranged in a pyramid. At the channel level, the difference for enterprises is only the quantity. For a single enterprise, the real core issue of the so-called distribution model is actually who leads the operation of the network, the manufacturer? Or the dealer? What exactly do they do? In the final analysis, the problem of the distribution model is basically how the manufacturer and the dealer A matter of division of labor! What is deep distribution? As the name suggests, it is a distribution model in which manufacturers are deeply involved in network operations and occupy a dominant position. In an ideal deep distribution model of consumer goods, the manufacturer is responsible for the management of business personnel, network development, terminal maintenance, display and promotion execution, etc. The dealer is only responsible for part of the logistics and capital flow. But in reality, this is just an ideal situation, and no company can fully achieve this goal. What is key account management? Because modern retail channels are becoming more and more developed, the market share occupied by a few retail giants is also getting higher and higher. Under this situation, manufacturers are forced to devote a lot of resources to supporting these channels. Set up a special working group for them, responsible for inventory distribution, terminal vivid management, terminal promotion execution, etc., in order to stand out in the competition of all brands in these terminals and occupy a more favorable position. This is a competition with no end. A complete distribution process includes two basic elements, one is the participants in the entire distribution process, and the other is the responsibilities and obligations of each participant. In the entire distribution process, the participants are not just enterprises and dealers. A more complete consideration method should include the five main categories of participants: corporate headquarters, overseas agencies, dealers, second batch dealers, and terminals. At the same time, as It varies by region and channel, and the level of involvement of various stakeholders in each effort varies. At the same time, a complete distribution process includes several work contents, such as the formulation of marketing plans, inventory management, retail point coverage, display management, credit provision, promotion design and execution, logistics and distribution, payment recovery, etc. We combine these specific work contents and the responsibilities of each relevant party to form a complete distribution model. It should be pointed out that in-depth distribution and key account management are only two representative types of various distribution models. From a larger level, sales channels include not only distribution, but also the corresponding direct sales model and other various models. form. So for a specific enterprise, what kind of distribution model should be adopted? For each enterprise, the products are different, the market environment is different, the corporate strategy is different, the distribution model is also different, and the Internet figures are also crazy about medical advertising. When doing so, any enterprise should design its own distribution system and method according to its own situation. No enterprise's distribution system and method are exactly the same. And as time goes by and the environment changes, the corresponding distribution model will inevitably change. Therefore any business must continuously improve it.