How to build and control your marketing channels Published: 2003-5-18 Author: Wang Wentao Summary: The first is to establish marketing channels selected channel members and channel members is a fight, and fight for the basic principle of channel members is based on the channel members Short-term profits, expected profits and risk calculations expect profits, and affect their decisions according to human finite rationality, information asymmetry and inadequate principles. The goal of managing and controlling marketing channels is to strive to cooperate and support for channel members, master the channel initiative, its basic means: communication, profit control, inventory control and marketing plan control, master as many next level as possible Merchant. In addition, through the design and improvement of marketing channels to strengthen the control of marketing channels, that is, the status and role of the original channel members are adjusted. Keywords: Marketing channels, middlemen, expectation, profit, limited rational, initiative, marketing channels are a manufacturer's product flow to consumers, manufacturers' level of management levels and control of the size of the product, the market share of the product There is a crucial role, and each manufacturer must strengthen this work, especially with the importance of foreign-funded foreign companies, the competition of marketing channels is more intense. I. In the formation of the design of marketing channels, the establishment and control of marketing channels (1) Establishing a marketing channel (1) Channel members should have certain standards: such as business scale, management level, business philosophy For the accepted level, cooperation spirit of new things, the level of service, the number of the lower reaches of the customer, and the development potential. (2) Basic principles for channel members: 1) Calculation of middlemen who have expected profit margin is the target of major manufacturers, and they are generally operating some competitive brands. Does the intermediaries operate a product mainly considering the size of the expected profits, and the expectations of profits are determined by the following factors: short-term profits, expected profits, risk. Short-term profits: Mainly referred to as Maori, Maori = Decline in unit merchandise × sales. In general, the manufacturer has just begun to operate the target market channel, must be highlighted to the middle business, because the sales volume is uncertain. In the future, with the rise of sales, you can gradually reduce the difference in unit items. Expected profits: The current profit is not the only factor in the intermediar deciding whether to join the channel. The middlemen should also consider the future development of manufacturers, ie, if they become the expected profit of the manufacturer's channel members. If the intermediar believes that there will be a large sales or high profit in the future, even if the short-term profit is not high, he may also consider joining. Risk: This is also one of the main considerations of intermediaries. High profits, but the risk is high, and middlemen do not necessarily join. Low profits, but low risks, middlemen are also possible to join. Therefore, we can get a formula: expect profit = f (short-term profits, expected profits, risk), short-term profits, expected profits and expectations, risk is negatively correlated. 2) Analyze the factors affecting the desired profits: Short-term profits: intermediaries calculate short-term profits, mainly considering the size of the difference. The size of the difference is mainly made by the manufacturer, but it should be determined by the following factors: A. The spread of competitors: generally cannot be lower than the price difference of competitors. B. Possible sales: and possible sales are subject to sales of competitive products, with the advantages and disadvantages of competition products, including products, prices, promotions, distribution, and intermediary understanding of this product in other places. Sales, intermediaries affect the factors such as the confidence of selling this product. Possible sales is large, and its spread can be small. Manufacturers must determine a reasonable difference.
Expected profits: The expected profit is based on the creation of manufacturers, other products or the profitability of other markets in other markets, the role of the support and preferential policies, reputation, and its business representatives, etc. on. Of course, the size of the expected profit is also related to the central business's own conditions. Risk: Risk is reduced. There are two risks of risks: on the one hand, market risks, on the one hand, the manufacturer's policy risk and reputation risk. Market risk refers to the profit of this product, whether there is a blocking of the product to the downstream customer or consumer. Manufacturers' policy risks refer to whether the design of manufacturing promoted distribution policies is conducive to reducing market risks, such as how beverage manufacturers are handling themselves, how to deal with non-market problems. If promised to exchange, it will undoubtedly reduce the risk of customers. Manufacturer's reputation is whether the manufacturer's policy commitment to middlemen can be fulfilled. Market risks are not as determined by a single manufacturer, while the manufacturer's credibility risk and policy risk is determined by itself. (3) Methods to strive for channel members are known from the above, and middlemen should decision according to the manufacturers and other information, and this information is also provided by manufacturers and their business representatives. According to people's finite ration, information insufficient and asymmetric principles, manufacturers and their business representatives must continue to promote all kinds of information such as the various channels that are conducive to middlemen to join sales channels, motivation It joins the marketing channel. (2) Control methods and strategies for marketing channels: The goal of channel control should be: Cooperation and support of channel members, have initiatives in channel control. Its basic means are: communication, profit control, inventory control and marketing plan control, master as many next level of middlemen, etc. Communication: means that the manufacturer's business representative or other members should often visit the middlemen of the middle business, especially for direct supply. A lot of experience in the success of the manufacturer is to regularly visit the middle business, and one of its roles is to deepen private feelings, the emotions of middlemen and manufacturers. The second is to make middlemen more understanding and decreased. For some differences, and through the middlemen understand the market information, the three works on the intermediaries, and the fourth is to increase the barriers of intermediaries into other manufacturers. China is a country with a deep influence in Confucianism. Ordinary people have a strong relationship with humanities, manufacturers and intermediaries maintain good relationships, and the good private relationship between business representatives and middlemen, help cooperation in business. stand by. However, the business representative is impossible to maintain too close relationship with the intermediaries, otherwise it should harm the manufacturer's plan implementation and interests, which should also be noted. Most of my country's middlemen have been developed by individual households, and their own cultural quality is not high, and the management level is relatively backward. With the fierce market competition, they urgently need to improve their cultural and management levels. The big manufacturers have the advantage of this aspect, allowing business representatives to counseling them, using expert power to enhance their influence and control. Profit control: Profit depends on sales and differences and related to these two. If the middleman joins the sales channel, there is no social average profit margin and there is no high expected profit, then it will have a complaint, and it is possible to choose to exit channels for a long time. Therefore, the most important thing should be to see how to expand its sales. The reason why sales of sales may be that middlemen pay attention to the degree of marketing resources to fly to other products, and it may be that it is not possible to operate, and it may be no confidence. There are generally two types of methods, one is a manufacturer to help its distribution products, such as manufacturers can help them develop downstream customers, and the other is to mobilize the enthusiasm of middlemen 'sales and improve their sales capabilities. If manufacturers can help them Develop a distribution solution, and the like. Inventory control and promotion plan control: A middleman generally operates many brands of products, which puts funds into a standard of manufacturer's products, reflecting its emphasis on the manufacturer and the degree of enthusiasm.
An important indicator reflecting the size of funds is the size of the inventory, increase its inventory, will prompt to put more resources into the manufacturer's products, and the results of this have prompted it to expand sales, another Aspects increase its barriers to marketing channels or joining competitive vendors. And the stock of inventory is related to factors such as promotional programs, sales seasons, intermediaries. The promotion plan is high, the market sales season, the low inventory cost of the middle merchants will promote its expansion inventory, and the size of the promotion scheme is mainly. The promotion plan is high, and the sales of middlemen sells high, which will make the goods turn quickly. Under the role of new promotion programs, it will make it more increasing inventory, so that the weeks will be fixed, the inventory of the middle business will make the inventory The bigger. Of course, if it is in the market off season, you should try to minimize the inventory of the middle business, because this time is slow, the inventory cost is high, which is not conducive to the development of manufacturers and intermediaries. However, if the manufacturer is compensated for the largest inventory of middlemen, it is possible to increase its inventory. If Nestlé makers go forward to the dealer before entering the winter, this time the price is particularly low, and other preferential benefits are also given. In summary, the appropriate control of the inventory is also controlled to some extent, but it is necessary to do not damage the interests of the intermediate merchants. Mastering as many downstream middlemen and even retailers: China's law is not perfect, through the contract contract, it is impossible to constrain the middle business, so the manufacturer wants to take the initiative, must master the more and more downstream middlemen, and the future Alternatively, several middlemen of the intermediaries can be replaced when they encounter special circumstances without being restricted. Because the longer channel, the worse controllability, such as large middlemen are not in place for some of the manufacturer's promotional resources, the policy is implemented, and the higher the price of the manufacturer, the higher the price, and it is possible to improve flag To join the channels of competitors. If you master the downstream middleman, if the middleman does not meet the manufacturer's cooperation and support, because the downstream middlemen are the middle business customers, it is the source of the profit of the middle business, and the manufacturer has mastered other Alternative intermediaries, it is easy to choose an alternative middle business. Therefore, on the one hand, master the downstream middlemen, on the other hand, master the replaceable other middlemen, will have active positions in channel management and control. Mastering the midst of downstream middlemen is mainly based on the market development of the middle business, of course the manufacturer can also develop independently, and the alternative intermediary is of course the development of manufacturers. Of course, there are many ways to control channel members, one is to be negative for middlemen, if the intermediate commercial does not reach the manufacturer's cooperation and support requirements, manufacturers can propose such as suspension cooperation, delay delivery , Reduce discounts, but I believe that these means can generally not use, because their negative work is extremely large, even make the future cooperation rupture, at all, at all, do not meet the manufacturer's requirements. Second, in order to achieve the purpose of the management and control of marketing channels, it is necessary to continuously establish a reasonable design and improvement of marketing channels based on market conditions and manufacturers' market status, and strive for channel initiative and control. Over time, the manufacturer's market status and market conditions will change. Adapt to these changes, it is necessary to reasonably improve and design the marketing channels, and achieve the purpose of intermediaries management and control. As a manufacturer, it is ideal to strive to rise in the negotiations with channel members, and the position of the middle merchants decline. The relationship between them is impossible, equality is just a temporary or surface.
