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Factors affecting choice of distribution channels

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					Factors affecting choice of distribution channels
Factors affecting choice of distribution channels are many. Manufacturing enterprises
in the choice of distribution channels must be on the following aspects of the factors
system analysis and determination can make a rational choice. (A) of the product
factor 1. Prices.     In general, the product unit price, the more should focus on
reduction of circulation, otherwise it will result in increased selling prices, thus
affecting the sales, which are detrimental to producers and consumers. The unit price
lower, broader product market is usually a multi-part indirect distribution channels.
2. Product size and weight.       product by the volume and severity of a direct impact
on transportation and storage cost of sales, too heavy or bulky products, should
choose the shortest possible distribution channels. For those who played by the
transport department under the limit (high, wide, long, set weight) of products, in
particular, should organize direct supplies. The large number of small and light and
the product, they may consider taking an indirect distribution channels.          3. Products,
perishable or perishable.       product short period, storage conditions require high or
difficult to repeated handling, shall take a short distribution channels, delivered to
consumers as soon as possible, such as fresh, dangerous.           4. Technical products.
Some products with high technical, or in need of regular technical service and
maintenance, manufacturing enterprises should be sold directly to users as well, so
that can guarantee a good time to provide sales technical services.          5. Products and
standard setting.    products are generally given directly to discuss the specifications
of both production and demand, quality, style and other techniques, instead of selling
via intermediaries. Standard with a clear quality standards, specifications and design,
distribution channels, short or long, and some users scattered, should the broker
indirect sales; some may be by sample or catalog direct marketing.                    6. New
products.     as soon as possible to bring new products to market, expand sales,
manufacturers generally attach importance to their own marketing team to meet
directly with customers, introduce new products and the collection of user opinions. If
we could get good cooperation between brokers may also be considered forms of
indirect sales. (B) market factors 1. Batch size to buy.          buy large quantities, and
more direct sales; to buy small quantities, in addition to selling through own retail
outlet, a number of indirect sales. 2. Distribution of consumers.         some of the more
concentrated the geographical distribution of consumer goods for direct sales. On the
contrary, for indirect sales. Industrial sales, contact a local user to facilitate production
and demand, and thus suitable for direct sales. Field users are more scattered, indirect
sales through more appropriate. 3. The number of potential customers.                   If the
potential demand of consumers, the market range, require brokers to provide services
to meet consumer demand, should choose an indirect distribution channels. If the
potential demand for small, small-market scope, production companies can sell direct.
   4. Consumer buying habits.         Some consumers prefer to buy goods businesses,
some consumers like to shop to buy goods. Therefore, enterprises should not only
direct sales, indirect sales also meet the needs of different consumers, but also
increased the product sales. (C) the factors of production enterprises themselves 1.
Financial capacities.      enterprises themselves financially strong, you can choose
distribution channels, can establish their own sales outlets, with sales-one mode of
operation can also choose to indirect distribution channels. Enterprise funds to rely on
intermediaries to weak sales and services, can only choose indirect distribution
channels.     2. Sales.     producers in the sales force, storage capacity and sales
experience and so have better conditions, they should opt for direct distribution
channels. On the contrary, it must be through intermediaries, select indirect
distribution channels. In addition, if an enterprise and good cooperation middlemen,
or brokers will be effectively controlled, you can choose indirect distribution channels.
If brokers can not cooperate well or not reliable, the impact of product market
development and economic, are not as direct sales.          3. Possible level of services
provided. brokers typically want manufacturers to do more to provide advertising,
exhibitions, repair and training services, to create conditions for the sale of products.
If the manufacturer has no intention or inability to meet this requirement, it is difficult
to reach agreement on their own sales force manufacturers. Instead, the high level of
services provided, brokers are willing to sell the product, manufacturers chose indirect
distribution channels.     4.    manufacturers limit shipments to rationalize production
and delivery will limit the provisions of certain products. Delivery of high limit, is
conducive to direct marketing; delivery limit low, it will help indirect sales. (D) policy
to require enterprises to select the distribution channels must conform to relevant
policies and provisions of the Act. Some by national policy should be strictly control
the distribution of goods or program products, marketing and business right from their
own sales commission; certain goods in the completion of the national mandatory
scheme task, the proportion of self-marketing business can be provided, such as
Monopoly ( smoke), post-control product (control group purchasing power of a small
number of social goods). In addition, such as tax policy, price policy, export laws,
commodity inspection requirements, etc., also influence the choice of distribution
channels. (E) the economic benefits       economic benefits of different ways to the size
distribution is also affected the choice of distribution channels is an important factor.
For the analysis of economic benefits, the main consideration is cost, profit and sales
of three factors. Detailed analysis is as follows:    1. Cost of sales.    cost of sales is
the product cost of sales occurred in the course. It includes packaging costs,
transportation costs, advertising fees, display and exhibition fees, sales agencies,
expenses for personnel consignment outlets and consignment fee, after sales service
spending. In general, reduce circulation areas to reduce cost of sales, but reduced
circulation of greater extent taken into account, so that not only save sales costs, but
also conducive to the production Fazhan and reflected are Jingjiheli the requirements.
    2. Price analysis.      (1) the price under the same conditions for economic
comparison. Currently, many manufacturers are the same price products sold to
dealers or final consumers, if Zhijie sales equal to or less than indirect sales
O'clock, You Yu Yao manufacturers sold directly to more than occupy Zi
Jin, Zeng Jia marketing cost,, Indirect economic benefits of high sales, good for
business; if greater than the indirect sales direct sales and the sales profit is greater
than the increase in cost of sales increased, then select the direct marketing advantage.
   (2) when the price is not the same time, comparison of economic benefits. Consider
the impact of major sales, if sales equal to the retail price by more than direct sales,
prices high, but costs more to pay the sales. Indirect sales using ex-factory price, low
price, but pay less sales costs. The choice of what kind of distribution channel? Two
distribution channels through the calculation of breakeven point as the basis for
selection. Breakeven point when sales volume is greater than the number, select the
direct distribution channels; otherwise, select the indirect distribution channels. In
sales is not the same time, they have to calculate the direct and indirect distribution
channels, distribution channels, profit, and compare, the general selection profitable
distribution channels.         middlemen features various types of power brokers,
different characteristics, such as advertising, transportation, storage, credit, training
personnel, delivery frequency has different characteristics, thus affecting production
enterprises the choice of distribution channels.          1. Different brokers on the
distribution of manufacturing enterprises. For example, the car radio manufacturers to
consider the distribution channel, its options are: the signing of exclusive contracts
with auto manufacturers to require automobile manufacturers to install only the brand
of radio; with commonly used channels to ask the wholesalers, retailers will be sold to
the radio; looking for some willing to distribute its brand car dealers; the gas station
assembly points set up the car radio, direct sales to car users, and in consultation with
the local radio station, to promote their products and pay for the appropriate
commission.       2. The impact of the number of different brokers. By how much the
number of middlemen different circumstances, select intensive distribution, selective
distribution, exclusive distribution. Intensive distribution means the manufacturers
selected the same time sales agents sell more products. In general, daily necessities
and more using this distribution form. The general industrial raw materials, small
tools, standard parts, also available form of this distribution. Selective distribution,
refer to the same target market, select more than one broker sales of enterprise
products, rather than select all willing to distribute products of this company all the
middlemen. This will help improve business efficiency. In general, the purchase of
consumer goods products and extraordinary items, industrial products in the
distribution of spare parts should use this form. Exclusive distribution, refers in a
target market, in a certain period of time, select a broker to sell only the products of
this company, signed the contract to require brokers may not operate competing
products, manufacturers only on selected dealer delivery, on average, this distribution
applies to consumer goods in the form of household appliances, industrial machinery
and equipment used exclusively, this form of cooperation is conducive to both sides in
order to better control the market.      3. The number of consumers to buy. If the
number of consumers to buy smaller, more often, can be used long-channel, otherwise,
to purchase large quantities, the number of small, short channel can be used.           4.
Competitor situation. When market competition is not fierce, we can use similar
distribution channels with competitors, whereas the use of different distribution
channels and competitors.