What are the basic methods of distribution?

The basic methods of distribution: sales agency, franchise, chain operation, distribution, zero channel marketing

What are distribution channels? What are the distribution channels? What types

Distribution channel refers to "the path through which ownership is transferred, directly or indirectly, when a product moves from the producer to the final consumer or industrial user." From the definition of Kendiff and Steele.

Since the main commodities consumed by individual consumers and productive group users in my country are different, and the consumption purposes and purchasing characteristics are different, objectively, the sales channels of Chinese enterprises constitute two basic models: enterprise to production Sales channel model for sexual group users and business-to-individual consumer sales channel model.

1. Enterprise sales channel model to productive group users. There are the following types: Producer-User, Producer-Retailer-User, Producer-Wholesaler-User, Producer-Wholesaler-Retailer-User, Producer-Agent Business-Wholesaler-Retailer-User

2. Enterprise-to-individual consumer sales channel model. There are the following types: producer-consumer, producer-retailer-consumer, producer-wholesaler-retailer-consumer, producer-agent-retailer- Consumers, producers - agents - wholesalers - retailers - consumers

Depending on whether middlemen participate in exchange activities, all channels in the above two models can be summarized as The two most basic types of sales channels: direct distribution channels and indirect distribution channels. Indirect channels are divided into short channels and long channels.

(1) Direct distribution channel

Direct distribution channel means that producers supply products directly to consumers or users without the involvement of middlemen.

The form of direct distribution channel is: producer-user. Direct channel is the main type of distribution of industrial products. For example, large equipment, special tools, and technically complex products that require specialized services all use direct distribution. Some consumer goods also use direct distribution, such as fresh goods. In recent years, especially since 1988, the proportion of self-sales by enterprises has increased significantly. For example, in 1990, my country's steel products sold by steel mills accounted for 38% of the country's total steel production; cars supplied and sold under mandatory plans accounted for only 20.20%.

1. Specific methods of direct distribution channels

There are many ways for enterprises to distribute directly, but in summary they are as follows:

(1) Subscription distribution . It means that the production enterprise and the user first sign a purchase and sales contract or agreement, supply goods according to the terms of the contract within a specified time, and deliver the payment. Generally speaking, most of the active contact parties are sales and production parties (such as manufacturers sending personnel to promote sales). There are also some popular products or in-demand raw materials, spare parts, etc. that are requested by users at their doorsteps.

(2) Sales from the sales department. It means that manufacturing companies usually set up sales departments outside the production area, in places where users are concentrated or in commercial areas. There are also some manufacturing companies that are close to users or commercial areas and set up sales departments in front of their factories.

(3) Joint distribution. For example, industrial and commercial enterprises and production enterprises jointly conduct sales.

2. Advantages and Disadvantages of Direct Distribution Channel

(1) Advantages of Direct Distribution Channel:

① It is conducive to the communication of information between producers and consumers. You can press need to be produced to better meet the needs of target customers. Because it is face-to-face sales, users can better understand the performance, characteristics and usage of products; producers can directly understand users' needs, purchasing and other characteristics and their changing trends, and then understand the advantages and disadvantages of competitors and their marketing environment. The changes have created conditions for on-demand production.

② It can reduce the loss of products during the circulation process. By eliminating the intermediate links in the circulation of goods, sales losses are reduced and sometimes the circulation of goods can be accelerated.

③ It can make both buyers and sellers relatively stable in marketing.

Generally speaking, when goods are exchanged through direct sales channels, a contract is signed, and the quantity, time, price, quality, service, etc. are all performed in accordance with the contract. The relationship between the buyer and seller is fixed in a legal form within a certain period of time, allowing both parties to devote their energy to and other strategic planning.

④ Promotion can be carried out directly during the sales process. Direct distribution by enterprises is actually often a direct promotion activity. For example, a company sending personnel for direct sales not only promotes user orders, but also expands the influence of the company and its products in the market, and promotes orders from new users.

(2) Disadvantages of direct distribution channels:

① In terms of products and target customers: For most daily necessities commodities, their purchases are small, diversified and repetitive . If producers rely on their own efforts to set up sales outlets widely, they are often unable to achieve their goals, or even backfire. It is difficult to widely distribute products in a short period of time, and it is difficult to quickly occupy or consolidate the market. The needs of the company's target customers cannot be met... .

What channel models does the distribution model include?

Distribution models include traditional distribution channel model, vertical distribution channel model, horizontal distribution channel model, and multi-channel distribution channel model. 1. The traditional channel system (model) refers to a distribution channel composed of independent manufacturers, wholesalers, retailers, and consumers. There is a loose cooperative relationship between channel members, each pursuing their own profit maximization, which ultimately makes the entire distribution channel inefficient. The traditional distribution channel system is also called a loose distribution model. As the name suggests, the relationship between channel members is temporary, accidental, and unstable. 2. The vertical channel system is composed of vertical integration of producers, wholesalers and retailers. Its members belong to the same company, or are members granted exclusive franchises, or are enterprises with sufficient control capabilities. Each member regards himself as a member of the distribution system and is concerned about the success of the entire vertical system. Vertical channel systems include three forms: ownership (also known as corporate), contract and management. The vertical channel system has a wide range of adaptability, and 64% of consumer products in the United States adopt this system. Whether it is a large enterprise or a small enterprise, whether it is daily necessities or industrial supplies, they all use a large number of vertical distribution channel systems. 3. Horizontal channel system, also known as organic marketing channel relationship, refers to a distribution channel system in which two or more companies are combined horizontally to jointly develop new marketing opportunities. Its characteristic is that two or more companies join together horizontally to form a new organization, giving full play to their respective advantages to achieve effective and rapid operation of the distribution system. In fact, it is a horizontal joint operation. The purpose is to exert synergy of resources or avoid risks through joint efforts. 4. Multi-channel system refers to a distribution system that uses multiple channels for the same or different market segments. (It refers to a company establishing more than two channels for distribution activities. Each channel of the company can achieve a certain amount of sales.) Two forms: one is that the manufacturer sells the same product through more than two competitive distribution channels. trademarked products. One is for manufacturers to sell differentiated products under different brands through multiple distribution channels.

What does distribution mean? Is there a difference between distribution and agency?

Distribution actually means that you go to the general agent to get the goods... and help them sell them. Of course, you can also make some profits from it. The most profitable thing is the general agent's factory. But if you are an agent If so, it may be cheaper to get the goods than from your distributor. You can enjoy more of the preferential activities provided by the company

What does the distribution model mean?

DianDianKe Distribution model:

Three distributors ABC, B is the distributor of A, and C is the distributor of B. When C’s store generates an order, C can get rebate X, and B can get rebate Commission Y, A can get commission Z, Xgt; Ygt; Z, and X Y Z = total commission preset by the supplier, and so on.

If the above is not easy to understand, please read the following:

1: Whoever sells will get the sales gold, and the proportion of sales gold is the same regardless of the distributor level.

Distributors can fission infinitely, but the gold they sell is the same no matter which level the distributor sells.

Two: When each distributor’s subordinates sell goods, the superior distributor can get promotion commissions. The maximum number of promotion gold levels is two. Three: The distribution level is level three, and the relationship due to sales is only level three at most. Everyone can become a first-level distributor in the promotion and get first-level promotion gold.

Hope you adopt it!

There are several distribution models about micro-distribution

First-level distribution

Second-level distribution

Third-level distribution

It is illegal after Level 3

weifenxiao

What are the distribution method options?

Distribution is a new way to expand online sales channels. The Magic Chopsticks Duodiantong distribution version has the function of network-wide distribution.

What are the sales channels?

To do a good job in sales, you must first have good sales channels. There are many factors when choosing sales channels. At the same time, you must also master channel sales skills, as follows Information is available for reference. Sales channels refer to the entire process through which goods are delivered from producers to users, as well as the corresponding marketing and sales organizations. The correct use of sales channels can enable companies to quickly and timely transfer products to consumers, achieve the purpose of expanding product sales, accelerating capital turnover, and reducing current costs. If any company wants to sell its products smoothly, it needs to correctly choose the sales channels for its products. There are two aspects to choosing a sales channel: one is to choose the type of sales channel, and the other is to choose a specific middleman. The factors that affect the selection of sales channels are: product factors, including the value of the unit product, the weight and volume of the product, the style and fashion of the product, the perishability and perishability of the product, general products versus customized products, and product technology. Service level, the use of new products; market factors, including the size of the market, user purchasing habits, seasonality and timeliness of market sales, competitors’ sales channels, etc.; factors of the enterprise itself, including the company’s size and reputation , management ability and experience, degree of control of sales channels, etc. 1. Selection of types of sales channels (1) Direct sales strategy and indirect sales strategy. According to whether the goods go through intermediate links during the transaction process, they can be divided into two types: direct and indirect sales channels. Direct sales channels are companies that adopt a business model that integrates production and marketing, that is, goods are transferred from the production field to the consumption field without going through any intermediate links. Indirect sales channels mean that goods are transferred from the production field to the user's hands through a number of intermediaries. sales channels. Direct sales have the advantages of timely sales, low intermediate costs, easy price control, timely understanding of the market, and conducive to providing services. However, this method requires producers to spend more investment, space and manpower, so it is a commodity with wide consumption and large market size. , this method should not be used. In indirect sales, with the participation of middlemen, companies can use the knowledge, experience and relationships of middlemen to simplify transactions, shorten buying and selling time, concentrate human, financial and material resources on developing production, and enhance the sales ability of goods. Generally speaking, a direct sales strategy is suitable under the following circumstances: ① The market is concentrated and the sales scope is small; ② Products with high technical requirements or large differences in manufacturing cost and after-sales service, as well as spoiled or damaged goods, make the goods, customized products wait. ③The company itself should have marketing technology, strong management capabilities, rich experience, and strong financial resources, or it should have a high degree of control over the marketing of its products. On the contrary, an indirect sales strategy is suitable under the following circumstances: ① The market is fragmented and the sales scope is wide, such as most consumer goods. ②`Non-technical goods or goods with small difference in manufacturing cost and selling price, as well as non-perishable and non-fragile goods, daily necessities, standard products, etc. ③The enterprise itself lacks marketing technology and experience, has poor management capabilities, weak financial resources, and has low requirements for the control of its products and marketing. (2) Long channel and short channel strategies.

Sales channels are classified according to their length and can be divided into several forms of different lengths. In the process of transferring goods from the production field to the user, the more links the product passes through, the longer the sales channel will be; conversely, the shorter it will be. There are four basic types of consumer goods sales channels: producer-consumer; producer-retailer-consumer; producer-agent or wholesaler-retailer-consumer; producer-- Agents - wholesalers - retailers - consumers. There are three basic types of industrial product sales channels: producers--industrial product users; producers--agents or industrial product distributors--industrial product users; producers--agents--industrial product distributors--industrial products product users. After a company decides to adopt an indirect sales strategy, it must make a choice about the length of applicable channels. Starting from the requirements of saving commodity circulation costs and accelerating the social reproduction process, intermediate links should be reduced as much as possible and short channels should be selected. But don’t think that the fewer intermediate links, the better. In most cases, the role of wholesalers is irreplaceable by producers and retailers. Therefore, whether to adopt a long channel strategy or a short channel strategy must comprehensively consider the characteristics of the product, the characteristics of the market, the conditions of the company itself, and the effect of strategy implementation. Generally speaking, a short-channel sales strategy is suitable under the following circumstances: ① Judging from the characteristics of the product, it is perishable, fragile, expensive, highly fashionable, trendy, and requires after-sales service...

What are direct selling and distribution

What are the similarities and differences between direct selling and distribution:

The term distribution is a concept we introduced from the West. In Western economics, distribution The meaning is to establish sales channels, which means that products are sold to consumers through certain channels. From this perspective, any sales method can be called distribution. Precisely because products must pass through a certain distribution method to reach consumers, as a modern enterprise, if it wants to maintain its longevity in market competition, it must study all distribution methods with concentration. From the perspective of the history of distribution development, there are three basic forms of distribution: wholesale, retail and direct sales.

1. Wholesale has always been a powerful weapon for the large-scale development of enterprises. It means that the enterprise sells products to several sales units, departments, outlets in a planned manner, or it can also be sold to a specific company at one time. Consumers sell a lot of products.

2. There are two forms of retail: sales with stores and sales without stores. Store sales refer to selling products to consumers through various retail stores.

3. Storeless sales is what we usually call direct selling. As one of the most traditional distribution methods, direct selling in the 21st century has tended to be combined with experiential marketing. Experiential marketing, which takes customers' subjective experience as the core of sales, has great room for growth in the field of direct sales close to consumers.

The evolution of the three basic distribution methods of wholesale, retail and direct sales not only raises new topics for distribution research, but also provides new ideas for enterprises to change traditional distribution methods. Until now, modern enterprise distribution methods such as agency system, chain store, direct sales, and the combination of direct sales and experiential marketing are still the mainstream distribution models that many companies are competing to practice.

1. Agency, Chain and Franchise

Agency behavior as one of the mainstream distribution models has emerged very early, but as a system, the agency system is highly developed in the commodity economy. product. Generally speaking, what we call agency in commercial affairs is called commercial agency, which refers to a profitable business activity in which the agent acts as an agent for the principal and collects commissions. Business agents are the bridge connecting manufacturers and the market. They can help manufacturers quickly open markets, save costs and improve efficiency. In today's business world where speed is the key, agency is undoubtedly an effective way to achieve the fastest product coverage.

According to the different agency rights of agents, agents are divided into exclusive agents, general agents and general agents.

1. Exclusive agency refers to an agency where the principal gives the agent exclusive rights in a certain market (which may be distinguished by region, product, consumer group, etc.). An exclusive agent based on geography means that the agent has exclusive agency rights in a certain area and is responsible for the sales in this area.

2. A general agent refers to an agent that does not enjoy exclusive rights. That is to say, the manufacturer does not grant the agent exclusive agency rights in a certain region or product, and there is no agency area division between agents. All agents can collect orders for manufacturers, and there is no such thing as "cross-regional agency." In this case, manufacturers can also directly sell and wholesale products in various places, so they are also called multiple agents.

3. The so-called general agent refers to the client establishing a full-power agent in a designated area and within a certain period of time. A general agent acts as an agent for the sales of a certain product of a certain manufacturer in a certain region. At the same time, it has the right to designate sub-agents and handle some matters on behalf of the manufacturer. Therefore, the general agent must be an exclusive agent. However, an exclusive agent is not necessarily a general agent, and an exclusive agent does not necessarily have the power to designate sub-agents. The advantage of using the agency system is that agents can be used to expand the market. The disadvantage is that the number of agents increases, which can easily lead to poor management.

2. Chain operation is one of the most popular business models in the 21st century. It is a business form in which a number of stores in the same industry are connected through simultaneous purchase and other methods to enjoy economies of scale. . Chain operations are divided into three types: formal chain, free chain and franchise.

1. A formal chain, also known as a direct chain, is an organization that directly operates a certain number of stores with a single capital.

2. Free chain, also known as voluntary chain, is a chain formed by independent retail stores uniting together to purchase goods in a unified manner, formulate sales strategies in a unified manner, and use logistics and information facilities in a unified manner. Organization is a form of alliance of small businesses against big capital.

3. Franchising is a distribution method originated in the United States. Unlike regular chain sales of products or services, franchising sells franchise rights, and its essential feature is the transfer and operation of intellectual property rights. At present, the vast majority of chain enterprises in the world are operated by franchising.

3. Direct selling enters the era of experiential marketing

Direct selling is a distribution method in which manufacturers sell products directly to consumers. In this sense,...