How do new companies choose distribution channels? (1)
HC360 HC Network 2003-11-24 10:00:51
"As I put forward in the course, most of the cases, a new entrepreneurial industry success or failure is not technology, but marketing." Before class, Professor Lodes specially emphasized marketing in new enterprises. The importance. "I have done an in-depth interview with 14 venture capitalists. They have a total of 200 new companies to invest in. I let them score the importance of the successful success of enterprises, and the results are 7 In the case of division, the marketing function is divided into 6.7 points, higher than all other enterprise management functions. After judging the experience of these venture capitalists, I have drawn a conclusion. If you use entrepreneurial marketing analysis, your business failure rate It can be reduced by 60%. Professor Lodes is a probator of Marketing in Wharton, and is also the first person of "Entrepreneur Marketing". He has studied a lot of research on entrepreneurial marketing, participating in the creation of more than 40 emerging companies, such a rich management practical experience, making each of his arguments seem to have a root, which is extremely persuasive. "In 1997, some people did another survey, requiring the US CEO of 500 companies in the United States to list their own strengths and weaknesses. What is the result, please see!" Professor Lodes hit it. The above appears on the screen. "Note that sales and marketing strategies are considered to be their biggest strength than other strategic resources." Professor Lodes made such conclusions about the results of the survey. "Survey data and practical experience tell us that marketing plays a key role in the development, production and sales of products and services. It is a tool that helps entrepreneurs' products have higher cognitive value than competitive products in the target market. How to establish and manage in distribution channels is an important issue in new enterprise marketing. "After the marketing is the importance of entrepreneurs, the topic begins to transition to the topic of this class. The new enterprise is shaking the market, which is forced to share the sexual distribution. "We give it a simple definition, which means that the 'product package' is effectively transferred from the company to all the necessary activities where the consumers who will purchase the product." Professor Lodus is a priority of a business school teacher, the theory, and only playing the role of dragon point in his course. "The theory of distribution is a chapter of many marketing readings. I am here, just want to visit the distribution channel from one angle, ie the channel's exclusive perspective," Professor Lodus followed: " I have gave many entrepreneurs to find a considerable number of entrepreneurs often neglect the exclusive factors of distribution. They want to think that they should use the same channel as other people in the industry, considering exclusive factors can have no Things. "" This is necessary to explain that exclusive distribution is to give retailers or other middlemen selling your products exclusive rights in a specific 'region' and a specific period of time. Exhaust distribution and intensive distribution is two extremes The middle is a selective distribution. Selective distribution is to give some entities to the right to sell your products in a particular area, but limit the number of distribution groups selected. Intensive distribution is allowing all people who want to distribute your products to be distribute They are also distributing your products. "" There are many advantages to exclusive distribution. Most entrepreneurs don't realize. I don't know if there is anything that is there? "Professor Lodi threw a problem, and the expression is a bit proud, and It seems to be proud, as if you say, "Do you have venturers, start the brain, answer questions, it's show time! (Now is a time to express your time)" Some people stand up, a brave lady. After short introduction, she talked about: "I think that if you can provide exclusive distribution rights, you can easily enter a distribution channel. This is a great advantage. Because most distributors, exclusive Sales is added to the value of your product package.
Taking the Internet as an example, if you only provide products for an e-commerce website, then this website operator is not worried about any price competition in other websites. If a channel member has an exclusive distribution right, there will be more power to sell products 'sales' to the next distributor or the ultimate consumers. Through exclusive distribution, distributors have more profitable opportunities, and they will sell your products. "The scarf does not let the eyebrows", the sense of thinking. Professor is clearly satisfied with this answer, slightly, supplement: "Yes." However, in general, it is precisely because the rights of distribution are exclusive, so the grant of the right to raise the right is generally determined by bargain, and the conditions are distributors or to pay partial deposits, or to ensure the minimum sales of sales to maintain exclusive rights. Thus, another advantage of being derived from exclusive distribution, a very important advantage for start-up companies. Everyone please see the cases. "InformationResources) Company --- Using exclusive distribution to support funds Support for early 1980s, Johnmalec and Grry Eskin have created a very potential value. The way is used to assess the impact of TV commercials on sales revenue. Since it is difficult to get funds from traditional channels, they will give potential customers to their sexual distribution rights, and use this way to obtain venture capital. They have developed a wired The television audience is a target that is not necessary to operate through the TV signal. Their concept is to place some boxes in the top of the home cable TV, "head" to obtain microwave program signals in the wired system Enter the computer system. This technology of information resources will make different advertisements that the same program is viewed. This concept is very attractive to many advertisers, because this is the first to effectively control its big Scale TV advertising spending method. This idea has stressed that these companies have interested in providing financial support for technology development. Before Malik and Eskin implement formal market operation, they first gave them to these customers. They promised to give these companies to share the rights of sexual distribution, and the conditions are that these companies have to pay a certain amount of down payment. In this way, Malik and Eskin have no need for any external financing to successfully obtain financial support required for products and market development. From In the case of financing difficulties, it is proven to be a very creative, very cheap new enterprise financing method. After case discussions, the students continue to explain the advantages of exclusive distribution. Some people This is said. "By granting the right distribution right, you can let the channel members connect your products more closely to other products of channel members to form a win-win situation. If your product positioning is consistent with other products underwent by channel members, then your product will strengthen the positioning of other products, and you will benefit from this relationship. This is particularly obvious in sales of many high-end products. Many high-quality products have a ranking retailer in each region, they are exclusively selling this product exclusively. Very expensive watches and high-grade fashions even distributes the exclusive distribution as a selling point. "The back of the coin: the drawback of exclusive distribution" is very good, this student is very thoroughly seen in the advantages of exclusive distribution. Below, we need to understand the other side of the coin - the drawback of exclusive distribution. Who talks about my opinion? "The course entered the case discussion stage, Professor Lodes is more only acting as a guided role." Let me talk about my experience! " "Speaking is to compare older students." I have been working for many years of foreign trade work, experience tells me if your exclusive distribution contract is too long, you will eventually live in the channel. After signing the contract with long-term exclusive rights, your influence on channel members is very limited. This situation often occurs in a country outside the country to enter the country, using a full service importer / distributor. Once the container leaves the country where the new enterprise is located, these import distributors have assumed all the responsibility of the product. In this way, he can dispose of the product anything.
