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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&#39;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.
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