Virtually all modern companies in the process of promoting and selling goods using mediation.Depending on the strategy and the size of the organization it may be distributors, wholesale dealers of various sizes.Companies transferring goods from producer to consumer, form channels in marketing.
Unfortunately, today not all companies pay appropriate attention to the management of sales channels.Often, the management of "old-fashioned" focuses on the management of internal processes, but management should monitor the effectiveness of the entire economic chain.However, be aware that the involvement of intermediaries is beneficial in terms of costs - their services are cheaper than the organization, such as its own delivery system, and besides, they perform such work more efficiently, as they can focus on performing limited functions, providinga higher level of service.
Distribution channels in the marketing have the following functions:
- in terms of external logistics movement of goods is carried out to a potential buyer in order to ensure its availability;
- in terms of marketing and sales are gathering the necessary information about customers, as well as measures for supply of goods on the market;
- in the part of related services that support and enhance the value of the goods.
The characteristics of marketing channels include:
- the quality and quantity of services provided by distribution channels, as well as their value;
- coverage sales network sales channel;
- the capacity of individual intermediaries perform transactions on favorable terms;
- channel length.
dwell on the last detail.The length of the channel - an important parameter of any distribution, that is, how many intermediaries there on the way to the customer.Distribution channels in the marketing of a significant impact on the volume of sales of goods.
channels of direct marketing is direct sale by the manufacturer to the final buyer of the goods.Example - a retail store in the production.The most common such channels in the service sector, where the process of production and sales combined.One-level distribution channel is characterized by a single intermediary, duplex - the presence of two or more intermediaries.An example of such a channel is a marketing tourist product.
The longer the channel, the higher the price of the product for the consumer.Expenditure on distribution channels make up 50% of the final cost of the goods.The use of long distribution channels leads to a decrease in producer profitability for a competitive price of the goods.And because the efficiency of supply control channel is a determining factor in the profitability and competitiveness of the products.
Although quite costly long channels, the manufacturer of products of mass use is often no other options conquest of space on the market.And the opportunities and motivation of the partners, which are included in the distribution channel, define the opportunity of winning buyer.
process of determining the optimal distribution channel consists of the following:
1. Determine channels to establish criteria for their evaluation on the basis of the marketing strategy, goals and opportunities of the company.
2. Determination of the list of options for distribution channels.
4. Assessment of each option on the established criteria.
5. Choosing the best option.
Due to the fact that the channels of marketing are important, you need a thorough approach to the choice of the best distribution channels, organization structure, ways of interaction.This are fundamental decisions that determine long-term effectiveness of the producer of goods and services.
