Distribution channels and their method of assessment

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Distribution channels name itself has formulated the essence of the term.In essence this means, mechanisms or even the exact distribution channels (sales) now its products.And that is the effectiveness of these channels depends largely and profitability of the enterprise.

How do you determine which of the available distribution channels can bring maximum sales, and provide quality service to the buyer at the same time.One of the main characteristics of distribution channels is their bandwidth.

channels often appear completely random.In such a situation natural channels characterized by a lack of control over the manufacturer's price.This is due to the appearance of such a huge number of channels of sales intermediaries.In addition, in this situation the distribution channels can not be analyzed by the manufacturer for the quantity and quality of the customer base, tracking customer service support when using intermediaries.This situation often leads to uncontrollable processes of sales and the inability to follow the implementation of plans for such sales channels.

In order to change the situation and make sure that the channels would meet all the requirements of the manufacturer of many companies follow a specific pattern of integrated assessments of trade channels.The main purpose of this method is to develop sales planning largely on intuition and inspiration, and based on the information on the prospects of various directions.

first what to do when this technique - make up a complete list of possible channels fed.For example, it may be: wholesalers, companies engaged in hydrating and delivery of goods in retail outlets, the company made according to the both the first and second, and a network of retail stores.At this stage it is necessary to fully analyze all possible options, often find themselves behind 2-3 channel that can bring quite a significant profit.

further describe the criteria for evaluation.The most commonly used criteria to evaluate the channels is their profitability, compliance consumers handling the channel by the manufacturer (we are talking about the control of price and movement of goods), the level of competition that channel when working with him, and the prospect of such a channel in the long term.

Each of the above criteria is point system.And using this, you can determine how successful will be the channel in any given situation.As far as he is loyal to your product and how profitable and durable is such cooperation your company and partners involved in this sales channel.

However, apart points, experts recommend to come up with a special weighting for each criterion.This ratio is defined orientation of the company in strategic planning and its location on the market.That is, in other words, the coefficient expresses the degree of importance of a criterion for this particular company, or it is for this group of products.After each test is evaluated and all points sum can judge the quality and efficient of such a channel.And on the basis of the results, we can say what channels are a priority and what is not.This approach works with both direct and indirect sales channels.By the way it is understood what the difference between them.The indirect sales channel when it is in the chain producer - consumer there is also an intermediary, one or more does not matter.Conversely, when the chain is short producer - consumer, and all that such a channel is called direct.Both have their advantages and disadvantages.