Types and distribution channels of products in modern conditions. Sales of products

Properly organized sales channels are becoming a prerequisite for any business that does not plan to depend on SEO promotion, one large client or director.

The essence of any sales channel is to attract customers to the company, and subsequently work with him regularly, taking into account the specific characteristics of the buyer. It is impossible to develop a single hierarchy of sales channels, they are constantly supplemented and transformed depending on the specifics of the business and the state of the company.

There are two key sales channels for attracting customers in one company - inbound and outbound. At the same time, in some companies, for example, the incoming channel can be divided into the channel of applications from the site, word of mouth, affiliate programs, and more. The classification and division of sales channels depend on the characteristics of a particular business, and sometimes on the company itself.

1. Active sales channels

2. Passive (inbound) sales on the b2b market

Many of our corporate clients applied to the company on their own, following the recommendations of colleagues. When calling, they got to the secretary of the branch. It was decided to centralize the processing of these requests by organizing an incoming sales channel for this. Calls will now be made to a single number at the head office - with processing by specialists who deal only with incoming sales.

Such a promotion channel is considered the least expensive, no effort is needed to find a client. A caller's need has been formed, which simplifies the activities of our managers. Usually employees of this division receive remuneration several times less compared to the direct sales department.

Sales in the b2b market to large clients

To work with such clients, the most highly qualified managers are involved. In this direction, excellent communication skills and solid experience are required, understanding the relevant technical nuances. Individual training is organized for each specialist. Employees need to be willing to travel.

The division works not only with existing customers, but also attracts new ones. The main task of the manager is to ensure comfortable conditions for interaction between the client and the company. The specialist should provide a single window - when the client has the opportunity to resolve all issues that have arisen when communicating with one employee.

Expert opinion

Elena Ventseslavovich,

Previously, we stuck to only direct sales - to increase new customers, but it was not possible to achieve growth in b2b sales. At the same time, we adhered to the strategic goal of increasing sales for corporate clients by ten times. So, we decided to form sales channels with a strategy for rapid growth, with improving the quality of service, developing new offers, attracting additional employees, etc.

To achieve these goals, sales optimization was required. Such an approach would make it possible to achieve competitive sales, with the effective implementation of the developed strategy. Therefore, it was decided to supplement direct sales with new b2b channels, with their own tasks and plan for each of them.

Managers of direct sales departments are engaged in independent search for clients, work out "cold" calls. With new b2b sales channels, it is necessary to take into account the needs of other target audiences, their decision-making logic.

3. Internet promotion channels

This channel, like the inbound sales channel, is focused on customers who are interested in our services, although they prefer the Internet for communication. Usually in this category are people who are accustomed to solving problems on their own, without seeking the help of a manager.

This b2b sales channel is considered the most promising today, so we are actively developing it. As a result, significant cost savings can be achieved. In particular, for the work of such a specialist, technical literacy is sufficient, since he is engaged in receiving and processing applications for connection. Developed communication skills and representative appearance are not required.

4. Service sales

This division serves existing corporate customers in each branch, providing information on new solutions and products. Each corporate client is assigned its own personal manager, who should help clients with the choice of suitable telecommunications services.

Thanks to this channel, it is possible to achieve an increase in the profitability of existing customers without serious expenses. In particular, a flower shop in the city center arranged for us to connect the Internet and telephone. After some time, he began to expand, opening new points in other areas. The manager is aware of this and offers the client to connect all stores to a single provider, with the organization of a common network of outlets, offering connection cloud PBX and providing a "beautiful" phone number.

I do not recommend outsourcing client service to performers. Despite the attractiveness of this direction, it does not reduce costs. Third-party specialists, as a rule, have lower qualifications, which leads to a decrease in company revenues.

  • Dealing with problem customers: instructions for sellers

5. Dealer sales channel

Dedicated sales channel. The functions of the sales department are redistributed to another company, in the absence of resources to organize their network. In this case, the dealer already has access to potential buyers or has the resources (offices, finance, people, access to potential customers) to achieve a more significant result compared to its network.

The most effective sales channel of this type becomes when it is necessary to quickly capture the market, for this it is better to use a service or product with high consumer qualities. He referred it to the number of active channels, since active actions are necessary when building a network to attract and develop network dealers.

Expert opinion

Platon Chebotaev,

Commercial Director of AGC Glass Europe, Moscow

Today again there is a division of the market between large distributors. Smaller distributors are either forced to leave the market without competitive abilities, or they specialize their business to adapt to changes in the market, with the expansion of the list of additional services, the formation of a unique client offer.

We can say that intermediaries in the market will continue. After all, many domestic manufacturers are interested in them - attracting distributors to reduce costs to promote products, concentrating their resources to increase production capacity.

It is impossible to speak unequivocally about the most profitable ways to promote goods in the b2b sector - independently or through distributors. The appropriate solution will depend on the specifics of the particular product. We prefer to use both options. Sometimes it is impossible to refuse additional links in the chain between the producer and the consumer - for cooperation in this case it is better to involve small processors who are closest to the end customers.

Pros:

  • Rapid development - nationwide coverage can be obtained in two to three months;
  • Reduction of costs - no extra costs for personnel, regional offices and promotion are required;
  • Access to missing resources - including offices, finances, employees, access to potential clients.

Minuses:

  • Lack of access to consumers - it is not always possible to separate the desire of the representative and the real situation;
  • Dependence on a distributor, dealer - a representative can change the supplier or brand with which he cooperates at any time. Because of this, you can lose the entire market in an instant.
  • Loss of income - the remuneration of a representative can sometimes reach up to 80% of the total income.

6. Affiliate sales channel

The company has its own business, focused on customers who also purchase your “product”. Why not offer them in addition to your goods and your products. An actual choice for businesses with a high level of marginality, which can provide a partner with a high reward.

Pros:

  • The ability to quickly organize a business - since the partner does not face special costs, therefore, he is usually interested in such cooperation;
  • Profitability - no expenses are required to form an effective sales channel.

Minuses:

  • Significant share to the partner - with rather low costs in this direction, the sales channel will be effective only if the partner is highly interested.
  • It is necessary to constantly work, including providing training for the partner to work with the product, providing appropriate tools, with regular reminders.
  • Great interest and loss of the channel - the danger of providing too profitable remuneration, which will lead to the partner's interest in the sale of only related products or services, that is, your products.

7. Passive or inbound sales channels

With passive channels, we do some work, in particular, with website promotion, advertising, etc., but then the client becomes the initiator of the appeal.

This is offline advertising. Various types of advertising are possible. One of them is for brand development, the other is for getting specific customers from certain ads. Only the second advertising option should be discussed, since the first has been losing its effectiveness more and more lately, given the large selection of brands and messages. At the same time, Chinese brands often hide behind strong brands, devaluing in perception the value of all branding and a particular brand separately.

Pros:

  • Easy to measure effect;
  • Fast results.

Minuses:

  • Costs - if you measure effectiveness, advertising often turns out to be unprofitable and unreasonable;
  • Searching for a solution - it is often necessary to test many solutions in order to find the most effective option;
  • High level of competition - the attention of buyers is divided by the number of advertising urges, it is extremely difficult to stand out and be remembered;
  • Low level of targeting - you can advertise on the street or in a cafe, but the reach will be quite modest. At the same time, federal advertising is unlikely to provide a suitable effect.

2. Word of mouth

Satisfied consumers share information about your products. It is considered the most effective channel for attracting customers.

Pros:

  • Profitability - the ability to get completely free;
  • Efficiency - people are ready to share their emotions, the best effect can be achieved precisely by the recommendations of their acquaintances and friends.

Minuses:

  • It is necessary to have a really excellent product, taking care of each consumer;
  • Significant waste of time.

Expert opinion

Marina Bukalova,

General Director of Sky Express Airlines, Moscow

It is difficult to make certain purchases if there is no way to try them on or touch them. However, this problem does not arise in the case of air tickets. It is much cheaper and easier for passengers to choose and buy goods on the Internet themselves, instead of tedious trips to the box office. I am sure that this direction will be the future of the world market.

Alexandra Osipova,

commercial director of the Umnitsa company, Chelyabinsk

About a year ago, the company opened an account on the social network Instagram. At that time, there were no special hopes for this sales channel. It was mainly used as a source of interesting entertainment information for our customers. But they were really pleasantly surprised by the results.

1. Social media page content. The first publication is a banner with a promotion for the company's birthday. Then the publication of information about our office life and employees began. They also shared tips on their personal experience of raising children. This direction has become very interesting to our readers. Now we continue to inform our readers about various services and products, with promotions, talking about corporate successes and advice to parents. There is also an "Ask a Specialist" section for those wishing to ask a specialist questions about early child development.

2. Additional marketing opportunities. Thanks to the page in the social network, we were able to establish relationships with existing customers who purchase our products. One of the customers was offered a joint competition on Instagram. After the publication of this celebrity, we managed to attract the attention of other "star" parents, and expand our target audience.

3. Costs of promotion on Instagram. Compared to the results obtained and other sales channels, the costs were minimal. The account is managed by an employee on maternity leave who works remotely.

4. Results. After six months, this channel allowed the company to achieve a monthly income that is comparable to the average monthly revenue of a retail outlet in Moscow. Now the number of subscribers is 33 thousand people from different CIS countries. In addition, we receive useful content from our customers, which we share with subscribers and increase the loyalty of the target audience.

  • Sales volume: how to increase it without serious expenses

How we analyze sales channels

Oleg Bobrikov,

Marketing Director, DreamLives

An important element for the full-fledged work of the company is not just the availability of goods in the store, but the quality of its provision, the offered prices for customers. Usually spontaneously appeared channels are characterized by a lack of price control by the manufacturer when reselling to intermediaries, there is no proper control over the quality and quantity of the customer base, the timeliness of service support, etc.

The consequence of this situation is uncontrollability, without the ability to plan sales by sales. To prevent such a problem, regular analysis of their work is required.

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Task number 1.

Product distribution channels

1. Sales channels

1.1 Essence, types, structure of sales channels

Most manufacturers offer their products to the market through intermediaries. Each of them seeks to form its own distribution channel.

Distribution channel - a set of firms or individuals involved in the purchase and sale of goods as they move from the manufacturer to the consumer.

The distribution channel level is any intermediary that does some work to bring the product and ownership of it closer to the end customer. Since both the manufacturer and the end customer perform certain work, they are also part of any channel.

There are different levels of distribution channels:

The zero-level channel consists of producers selling goods directly to consumers. The three main methods of direct selling are peddling, mail order and manufacturer-owned stores.

A peer-to-peer link includes one intermediary. In consumer markets, this intermediary is usually a retailer, while in industrial markets, this intermediary is often a distributor or broker.

A two-layer channel includes two intermediaries. In consumer markets, these intermediaries are usually wholesalers and retailers; in industrial goods markets, they can be distributors and dealers.

A three-level channel includes three intermediaries. Small wholesalers buy goods from large merchants and resell them to small retailers that large wholesalers usually do not serve.

Direct sales. Opportunity to refuse trading services depends on the extent to which the following conditions are met. Often direct marketing and indirect marketing are combined when selling the same product.

Distribution channels for goods can be organized in different ways. There is the following structure:

Traditional distribution system - consists of an independent manufacturer, one or more wholesalers and one or more retailers. Each member of the channel is a separate enterprise, striving to secure the maximum possible profits for itself, even at the expense of the maximum profit extraction of the system as a whole.

Vertical marketing system - consists of a manufacturer and several resellers acting as a single system. The vertical system can be:

Corporate vertical system - when the successive stages of production and distribution are in common ownership;

Contractual vertical system - consists of independent firms connected by contractual relations and coordinating programs of their activities to achieve the greatest commercial results;

Managed vertical system - coordinates the activities of a number of successive stages of production and distribution, not because of the common ownership of one owner, but due to the size and power of one of the participants.

Horizontal marketing system - the creation of a joint venture by several independent manufacturers to sell their own products.

Multi-channel marketing system - the use by the manufacturer of several forms of organization of the distribution channel.

1.2 Types of intermediaries

The sale of products in most cases is carried out through intermediaries, each of which forms the appropriate distribution channel. The use of intermediaries in the sphere of circulation is beneficial, first of all, for manufacturers. In this case, they have to deal with a limited circle of stakeholders in the sale of products. In addition, the wide availability of goods is ensured when they move directly to the sales market. With the help of intermediaries, it is possible to reduce the number of direct contacts between producers and consumers of products. Figure 1 shows that with three producers and three consumers of products, the number of links between them will be nine. The participation of an intermediary in the sale of products reduces the number of connections to six.

Figure 1 - Number of contacts with and without an intermediary

distribution channel market commodity

Supply and marketing organizations, large wholesale depots, exchange structures, trading houses and shops can act as intermediaries.

Among the main reasons for the use of intermediaries are the following:

the organization of the process of commodity circulation requires the presence of certain financial resources;

the creation of an optimal system of commodity circulation presupposes the availability of relevant knowledge and experience in the field of the market conditions for one's goods, methods of trade and distribution.

Intermediaries, thanks to their contacts, experience and specialization, make it possible to ensure the wide availability of goods and bring them to target markets.

The following persons are involved in the distribution:

Sales department. Receiving and maintaining orders has long been the task of the sales department, and communication with customers is carried out most often through salesmen and sales representatives. The above tasks cover the sale in the narrow sense of the word, while the management of the enterprise makes fundamental decisions about markets, customer groups and products. It is rather the historical form of the pure sales department that is now losing its importance in favor of the marketing department.

Enterprise management. The involvement of members of the company's management in sales activities is particularly common in industries in the investment sector, where there are only a few large buyers. Often, management supports other sales forces, such as salespeople, especially if the customer is important or the order size is unusually high.

Traveling salesman. Searches for clients and works with them. Most often, their task is to establish contacts and receive orders. Usually they are given a certain area in which they must work with all or with individual clients.

Sales Representative. These are legally independent persons who enter into contracts and conduct business for several enterprises. They do not acquire ownership of the goods and do not bear the risk associated with this (damage, change in fashion, prices). The functions of sales representatives correspond in many respects to the functions of a traveling salesman. The difference between a sales representative and a traveling salesman is expressed in the fact that he himself determines the order of his work.

Sales branch. Many large enterprises have their own sales departments. This allows them to work in close proximity to the customer both at home and abroad, provide intensive advice to their clientele and ensure fast delivery of products.

The desire for close ties between producer and consumer has another reason. Many manufacturers are afraid that the trade is not making enough efforts to sell their goods, that it may change its suppliers to more profitable ones. It is possible that the market information that trading can provide is also insufficient.

Thus, in the course of its activities, the company can act in various roles:

Wholesaler (wholesaler) - a person or firm that purchases a significant amount of goods from different manufacturers and organizes their movement in retail trade or direct sale to the consumer.

Retailer - a person or firm that directly sells a relatively large amount of goods to the final consumer and purchases goods either from a wholesaler or from a manufacturer.

Broker - a reseller who organizes the sale of goods without acquiring ownership (acts on behalf of the seller). He brings the seller and the buyer together, making a transaction on a commission basis.

Dealer - a company representative who organizes marketing activities at his own expense, acquiring goods from the manufacturer in ownership. This type of trade and intermediary activity is typical for the sale of durable goods that require a significant amount of services.

Commission agent - a person who has a warehouse with goods that he sells on his own behalf, but at the expense of the manufacturer.

Wholesale agent - works under an agreement with the manufacturer and conducts operations at its expense. At the same time, he may be granted the exclusive right to sell the company's goods in certain areas.

Trade (sales) agent - independently sells goods to customers, while it can have a very different status: work with restrictions, serve only a specific buyer (group of customers).

The organization of the sales system in the company involves the unification of all employees who perform an interconnected set of works in the process of moving goods from the manufacturer to the final consumer. It also requires the definition of functions and the establishment of service relationships between employees within the marketing network and beyond, coordination and control of activities in the marketing system.

1.3 Choosing a marketing channel

The choice of channels and methods of distribution in the target market depends almost entirely on the nature of the product. The direct method, which involves the establishment of direct relations between the seller and the buyer, is used mainly in the sale of industrial goods, the indirect method, which involves the use of a trading and intermediary link, is used mainly in the sale of consumer goods.

The most important distribution channels are: trade enterprises (wholesale, retail, import, export); Commission; agency; brokerage companies; as well as intermediary markets (exchanges, auctions, trades).

Resellers, especially large firms, have their own sales network - dealers, have their own material and technical base - warehouses, shops, showrooms, service and repair workshops. They are equipped with computer technology that allows you to keep a constant record and control over the number of products sold through stores, over the availability of spare parts in warehouses, and, as a rule, have the ability to deliver the necessary spare part to the dealer at any point in a matter of hours.

When choosing channels and methods of distribution, first of all, the role of each channel in the overall program of the production department, its effectiveness, the size of distribution costs, the system for locating warehouses and other service premises are revealed, and pricing features are revealed.

The decision to choose a distribution channel is one of the most difficult decisions that management needs to make. The channels chosen by the firm directly affect all other marketing decisions. The pricing policy depends on which dealers the company has chosen - large and first-class or medium and ordinary. Decisions about in-house sales staff depend on the amount of sales and training work that will need to be done with dealers. In addition, a firm's distribution channel decisions involve issuing long-term obligations to other firms. Management must select distribution channels with an eye on the expected commercial environment of tomorrow.

Most manufacturers offer their products to the market through intermediaries. Each of them seeks to form its own distribution channel. The manufacturer is ready to shift part of the sales work to intermediaries, since many of them do not have enough financial resources for direct marketing. Therefore, it is much easier to work through an extensive network of private distributors. But even if a manufacturer can afford to create its own distribution channels, in many cases it will earn more if it increases capital investment in its core business.

The use of intermediaries is mainly due to their unsurpassed effectiveness in making the product widely available and reaching the target markets. Through their contacts, experience, specialization and scope, intermediaries offer the firm more than it can normally do alone.

Based on the results of studying the main options for the channel, the firm decides on its most effective structure. Now the task is to control the selected channel. Channel management requires the selection and motivation of individual intermediaries, as well as the subsequent evaluation of their performance.

By choosing distribution channels, the entrepreneur decides which segments of consumers, through which intermediate stages he will supply. For most products, there are many alternative distribution channels. The decision in favor of a certain path is influenced, along with costs and revenues, by the image of the product and the enterprise. The choice of distribution channels belongs to the strategic decisions of the enterprise. Their change, as a rule, is impossible in a short time. Changes are also unsafe because consumer preferences are often associated with specific intermediaries.

An important task is to study and determine which distribution channel structures of all possible ones are available to the enterprise. At this stage, there is a sequential enumeration of possible sales routes and their description. Decisions are made regarding the following:

The length of the distribution channel.

Table 1 - Advantages and disadvantages of distribution channels of different lengths

Channel type

Advantages

Flaws

1 . Direct sales

High control over prices, the possibility of their differentiation by region

Access to market and consumer information

No intermediary markup, the possibility of forming a stable group of customers

High implementation costs

Significant transportation costs

Significant costs for the organization of warehousing

2. Selling through an intermediary

Moderate implementation costs

High intermediary margins, relatively high prices for the end buyer

Limited control over territorial coverage

Channel type

Advantages

Flaws

3. Selling through a multi-level system of intermediaries

Relatively low costs

No need for market research and forecasting

No need to solve logistics issues (warehouses, transport, etc.)

Low level of price control

Isolation from the end consumer and, accordingly, lack of information about him

The need to establish closer contacts with intermediaries

Organization of a system for informing and training them

Types of intermediaries with whom cooperation is possible (wholesale, small wholesale, retail).

The number of intermediaries of the same type at each level (i.e. the nature of market coverage).

Features of the structure of the international distribution channel.

When choosing a distribution channel, it is necessary to take into account the influence of the following factors:

* costs of distribution channels (investments in the development of channels and fixed costs for their support)

* the ability to control the distribution channel;

* market coverage;

constancy of intermediaries;

assortment group width;

costs and trade margins;

sales channel length;

channel blocking (this phenomenon may be the result of the closing of some channels by trade associations);

the volume of stocks;

opportunity to use new marketing ideas.

The firm usually resorts to the use of several distribution channels, either in order to create a competitive situation, rivalry between merchants, or to enter several segments with different buying habits.

Table 2 - Criteria for choosing a marketing channel

Considered characteristics

indirect channel

Features and conditions for the implementation of the choice

short

1. Buyers characteristics:

Numerous

the principle of reducing the number of contacts plays an important role

high concentration

low cost per contact

major purchases

irregular purchases

increased costs with frequent and small costs

operational supply

availability of inventory near the point of sale

2. Feature of goods:

consumable products

the need for fast delivery

large volumes

minimization of transport operations

technically simple

low maintenance requirements

non-standardized

the product must be adapted to specific needs

under launch

careful monitoring of the new product is necessary

high value

contact costs are quickly amortized

3. Characteristics of the company:

limited financial resources

marketing costs proportional to sales volume

full range

the firm can offer a full service

good control required

minimizing the number of screens between the firm and its market

wide popularity

good reception from the marketing system

wide coverage

sales must be strong

*** Most preferred channel.

It should be noted that managing multiple distribution channels is usually much more difficult.

1.4 Management of distribution channels

As a rule, distribution channels are managed by the sales director or commercial director, since this activity requires a holistic vision of the sales situation in the enterprise. The control process includes the following functions:

1. Planning across channels and between members of the same channel. It can be carried out both by the supplier independently and jointly by the supplier and dealers. In the case when a company has limited options for choosing intermediaries and it itself has to take the initiative in attracting them, the second option is most likely.

2. Motivation and stimulation of intermediaries. In the process of motivating intermediaries, two types of factors are used: stimulating (discounts and bonuses) and partnership. The latter are aimed at forming long-term mutually beneficial relationships: joint planning of the channel's activities, special conditions for cooperation, marketing support, training of sales personnel, etc. In my opinion, among partnership measures, besides joint planning of the channel's activities, congresses and training of dealers are the most effective for medium-sized businesses. A medium-sized company by industry standards manufactures consumer goods. An audit of the distribution system showed that the channels were chosen correctly, however, there is a high turnover of dealers, which significantly increases the costs of the distribution system. To study the causes of turnover, a study was conducted on the satisfaction of dealers with the terms of cooperation with the company. It turned out that dealers are quite satisfied with the company's product, but they are not satisfied with the company's attitude. Especially many complaints were caused by the fact that the company does not react in any way to the proposals of its dealers, does not take into account their wishes, does not try to establish a dialogue; behaves as if dealers are its structural subdivisions. The company's management was also surprised that their intermediaries offered quite reasonable things that were beneficial to both parties. As a result, it was decided to hold meetings every six months. All expenses were covered by the company. This measure greatly increased the loyalty and motivation of dealers to continue cooperation with the company.

3. Control and management of communication is another important factor in the management of distribution channels. It allows the manufacturer to direct the activities of channel members in the interests of the supplier, or at least exercise significant influence over them. The following may be subject to control:

quality of service;

service technology;

If the supplier's position is not strong enough, then he should at least achieve the organization of a fairly intensive information exchange with dealers. Another type of elementary control that each supplier can and should organize is control over the timeliness of payments.

4. Settlement of conflicts of channel participants. The bandwidth of the channel is largely determined by the relationship between its participants. The most common conflict is vertical: conflict between participants of different levels. Dealers are not happy with the terms offered by the supplier. Horizontal conflict is a conflict that occurs between companies of the same level. Some dealers believe that others enjoy undeserved preferences from the supplier. A multi-channel conflict usually occurs if a supplier works simultaneously with several types of channels under similar or, worse, the same conditions, in particular, if the supplier works with wholesale and retail at the same or slightly different prices. The following conflict resolution mechanisms are most effective:

joint development and approval by channel members of a list of tasks that are priority for all members of the channel. For example, reducing costs when moving goods within the channel, increasing the speed of delivery, agreeing on a fixed retail price, etc.;

joint membership in trade and other associations. In this case, the rules established in it ensure the prevention of conflicts, and the association itself can act as an intermediary-peacemaker;

Regular evaluation of channel participants and adjustment of the terms of cooperation with them depending on their success in promoting the product to the market, as well as adjusting the client base, stopping work with those who do not fulfill their obligations or are not able to "pull" the required sales volume. In conditions of stability, channel members relax, lose their business acumen, quality declines, and growth rates fall. Evaluation of the work of intermediaries, as a rule, is directly related to their motivation. This is especially evident in the example of the bonus system: according to the results of the evaluation of the activity of the intermediary, he is awarded remuneration. In addition, according to the results of the assessment, the terms of the contract can be adjusted in one direction or another.

Mistakes in managing distribution channels There are not so many typical mistakes in building relationships with intermediaries, but they are quite serious:

Working with everyone, lack of a system. In this case, the main threat is the dispersion of efforts. This leads to the fact that the company spends a lot of effort working with intermediaries who are not able to participate in achieving its strategic goals. All of the problems listed below also occur in this case. So, if a company wishing to launch a new trademark on the market starts working with all intermediaries, wishing to cover the market as widely as possible, then the funds allocated for the "promotion" of the brand will most likely be wasted due to fuzzy positioning and "amateur" intermediaries. As a rule, "working with everyone" is practiced by companies whose general and marketing strategy are not defined and prescribed, and, therefore, there are no clear guidelines in marketing work.

Provoking conflicts between channel members. We have already discussed the causes and mechanisms of conflict resolution above. The task of the supplier is to monitor the situation in this area and not provoke conflicts.

Lack of feedback between supplier and dealer and channel planning. The main negative consequence of the lack of mutual information between the supplier and the intermediary is a decrease in the flexibility of the behavior of both in the market.

Obviously, the work of managing distribution channels is a rather complicated process, but a systematic approach to it can significantly strengthen the company's position in the market, improve sales performance, product representation in target markets, ensure proper positioning, and achieve many other significant successes. In the end, there is too much spontaneity and uncertainty in the market to allow them to enter their own distribution channels.

Conclusion

This course work covered:

1. the concept of distribution channels, their essence, types and structure. We found out that there are the following types of distribution channels:

Zero level channel

Single layer channel

Bilayer channel

Three-level channel

Direct sales.

There is the following structure of distribution channels:

Traditional marketing system

Vertical Marketing System

The vertical system can be:

Corporate vertical system

Negotiated vertical system

Controlled vertical system

Horizontal Marketing System

Multi-channel marketing system

2. Intermediaries are:

Wholesaler (wholesaler)

Retailer

commission agent

wholesale agent

Trade (sales) agent

3. Sales can be direct and indirect. Indirect can be - sale through one intermediary and through a multi-level system of intermediaries.

4. The distribution channel management process includes the following functions:

1. Planning across channels and between members of the same channel.

2. Motivation and stimulation of intermediaries.

3. Control and management of communication

The following may be subject to control:

quality of service;

service technology;

compliance with the required assortment plan;

compliance with the frequency and rhythm of purchases.

4. Settlement of conflicts between channel participants. The following conflict resolution mechanisms are most effective:

joint development and approval by channel members of a list of tasks that are priority for all members of the channel.

exchange of employees between channel participants to increase mutual understanding;

joint membership in trade and other associations.

5. The task and the specific situation were analyzed, the purpose of which was to develop skills in the practical application of theoretical knowledge.

List of sources used

1. Durovich A.P. Marketing in business activity. - Minsk: NPZh Finance, Accounting, Audit, 2007.

2. Kuzmina E.E., Chaliapin N.M. Theory and Practice of Marketing: Textbook / Ed. HER. Kuzmina.-- M.: Knorus, 2005.

3. Marketing: Textbook / Ed. ed. V.V. Gerasimenko. - 2nd ed., revised. and additional - M.: INFRA-M, 2010. - 416 p.

4. Marketing: Textbook / Ed. prof. N.P. Vashchekin. -- 3rd ed., trans. and additional - M.: ID ORBK-PRESS, 2004.

5. Marketing: Textbook for universities / CH. Bagiev, V.M. Tarasevich, X Ann, Ed. GL. Bagiev. -2nd ed., revised. and additional -M: CJSC Publishing house "Economics", 2005. - 718 p.

6. Maslova T.D., Bozhuk S.G., Kovalik L.N. Marketing: Textbook. - St. Petersburg. and others: PETER, 2007.

7. Solovyov, B.A. Marketing: textbook / B.A. Solovyov. - M.: INFRA-M, 2006. - 383 p.

8. Pricing. Shulyak P.N., Dashkov and K Publishing House - 2004.

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I share a selection of tools to attract customers. The structure is based on the material of the book - "Traction" (by Gabriel Weinberg and Justin Mares).

The word "traction" does not have an exact translation into Russian. In relation to startups, this is the thrust, the dynamics with which key indicators change, plus the procedure for tracking these indicators. For example, a project may be unprofitable, but show good traction - abnormal audience growth or frequent repeat purchases (retention) of customers, etc. This is where the terms like “traction meeting”, “traction map”, etc. appeared.

  1. Word of mouth and viral marketing / Viral Marketing
  2. Media and PR / Public Relations / PR
  3. Scandalous PR. Events that attract attention / Unconventional PR
  4. Contextual advertising / Search Enginge Marketing - SEM
  5. Social networks and media advertising / Social and Dispay Ads, SMM
  6. Outdoor / Offline Ads
  7. Search Engine Optimization / SEO
  8. Content Marketing / Content Marketing
  9. Email Marketing / Email Marketing
  10. Development as marketing / Enegeneering as marketing
  11. Promotion through blogs / Targeting blogs
  12. Partnerships, business development/Business Development
  13. Direct Sales / Sales
  14. Affiliate programs and CPA networks / Affiliated Marketing
  15. Existing Platforms
  16. Conferences and demo days /Trade Shows
  17. Events / Offline events
  18. Lectures, public speaking/ Speaking Engagements
  19. Community Building

Why is it cool? If you are running a business X, all you need to do is quickly test these 19 types of acquisition channels and choose the most effective one. If it was not possible to attract customers from any channel, the startup can be quickly closed and not be tormented by the thought “what if there is a super-marketer somewhere who can promote my product X”. You can also try to change the value proposition, the target audience and the project team. In any case, we are dealing with a finite set of options that can be sorted out in a reasonable time and money.

By the way, if you find the 20th type of customer acquisition channel (different from these 19), write to me, I haven't found it yet.

It is worth saying that there are different methodologies for launching startups/new businesses. All of them somehow revolve around 3 terms that define the product "Target audience (A) - Value proposition (C) - Sales channel (K)". Arkady Moreinis aptly named this combination AKM (audience-channel-message).

In most approaches, 2 of the 3 terms are fixed and the 3rd is sorted out. So what are the possible launch methodologies?

  1. We fix the target audience (A), for example, mothers of schoolchildren of the 11th grade and the sales channel (K), for example, we will use only manual, direct sales, live. We sort through the value proposition (V) until we find a good combination so that the economy converges, there is potential for scaling, etc. The second step is to sort through different sales channels (K), while fixing the target audience (A) and value proposition (C). This is the methodology that is used in most accelerators, for example, in the IIDF.
  2. Another approach is to fix the target audience (A), value proposition (C), sort through the sales channels (K). This approach is used for projects that already have stable, repeatable sales, but have not yet learned how to scale. These are the most interesting projects in terms of investment - they are already making money, and if they find a way to replicate / a successful sales channel, a new venture story is possible.
  3. The third approach: we fix a value proposition (V), for example, a service for translating audio into text and a sales channel (K), for example, facebook. We are trying to find an audience (A) with the maximum LTV (revenue from the client, during his use of the service) and the minimum CAC (cost of attraction). For an ordinary business, this is the worst approach to make a product and then look for an audience for it. But, if it's some cool technology, like speech recognition or teleportation of people, then you can put the technology or value proposition at the forefront. Most Israeli startups, for example, follow this path.

What to prioritize? Audience (A), Sales Channel (K), or Value Proposition/Technology (V)? My answer is to prioritize what exclusivity is possible.

In this retelling, I will mainly use approach number 2 - we fix the target audience and value proposition and sort through the sales channels.

Key Ideas for Testing Sales Channels

The main idea is that over time, in any sales channel and in any advertising, CTR drops to 0% and the sales channel dies (the law of burning sales channels). Therefore, you can not stop - you must always look for new channels. When banners appeared, their CTR reached 75% (!) Now the norm is about 0.1-1%.

In a competitive environment, the cost of attracting customers is growing, and marginality tends to zero. The paradox is that if in ordinary business you are given volume discounts (when buying a batch of 100 computers, each will cost less than buying 1), then in advertising you need to pay a markup for volume (the cost of attracting 1000 customers in terms of one, much higher than the cost of attracting 10 customers).

Studies have shown that very few businesses die due to a lack of a product, almost all die due to a lack of customers and a lack of sales channels.And even for those who survive, a maximum of 1-2 channels work effectively (Pareto's law in its toughest form). That is, the goal of testing sales channels is to try 19 types and 100 ways to find at least one (!) Which is more effective than all existing ones or where the economy will converge and focus on it. Or make sure that nothing more effective yet exists. Worst of all, different channels can operate at each stage of development. They usually start with “manual” or direct sales and then move on, for example, to display advertising, which quickly “burns out”, after which contextual advertising starts to work well, then affiliate networks, SEO, etc.

This is where the 50/50 rule of thumb comes in - a founder should spend 50% of their time creating a product and 50% acquiring customers and developing sales channels.

The main metrics by which the effectiveness of channels is ranked:

  • For how much you can buy a client (CAC - customer acquisition costs, the cost of attracting a buyer), for example, their context in yandex is 5 thousand rubles, and from facebook - 3 thousand rubles.
  • How many clients in the channel (capacity) - for example, from the context - 100 clients per month, and from facebook - a maximum of 10, despite the fact that from the context is more expensive.
  • How difficult it is to connect - for example, facebook starts in 1 minute and without moderation, in yandex you can go through moderation for 2 days, it will take more than a month to connect an affiliate network, and from 3 months to SEO.
  • ROI is return on investment over time. This is the most accurate and general indicator, but also the most difficult to calculate, it is usually calculated by cohorts. Here is the task:
    1. Week #1. 1,000 rubles each were invested in Yandex and Google. We received 5 leads from Yandex (for example, email registrations), and 10 leads from Google. Let's call the group of these leads - "cohort No. 1"
    2. Week #2. From Yandex - out of 5 leads, 2 buyers turned out, who bought in the amount of 1 thousand rubles. From Google - out of 10 leads, 5 buyers turned out who bought for 500 rubles. What is the ROI for the 2nd week, which channel is more effective?
    3. Week number 3. One of those 2 buyers from yandex returned and bought another 1000 rubles. Two of those 5 google buyers came back and bought another 2000 rubles. What is the ROI for the 3rd week? Which channel is more efficient? Write your answers in the comments below.

Now, a couple of phrases about each of the types of sales channels.

Let's take an example with a hostel for clarity. Let's say I have a hostel with 20 beds in Krasnodar and I need to “promote it from scratch” and achieve at least 50% guest occupancy. Naturally, I will look at analogues and see that the main attraction channels are, for example, booking, avito, sutochno and advertising on the pavement at the nearest station. And of course, my attempts can fail if the product itself is not of high quality (inadequate prices, bad reviews, no chips), or the market is oversaturated, or the team is inadequate - there can be many reasons. By the way, all these problems will quickly surface during testing.

What is the purpose of all these tests? Find such a combination of "target audience - value proposition - sales channel", in which CAC and other costs are minimal, and LTV is maximum per 1 client, while ensuring loading > 50%.

So let's go through the list.

Channel #1 Word of mouth and viral marketing / Viral Marketing

The essence is simple - 1 attracted user brings at least 1 new one. The most natural and ancient way. But there are several nuances:

  • The basis of viral distribution and word of mouth at all times and in all niches is a quality product that usefully stands out from other products in the consumer's perception. The product causes a “wow effect” or at least is remembered, so people start talking about it and recommending it to friends online or offline. You can stand out either by doing something 2-10 times better (in terms of price, speed, level of service, etc.), or by being the first in a certain category (“the first unmanned vehicle”), or by creating non-standard combinations (for example, "books in pharmacies"). See the Laws of Marketing.
  • To achieve virality, the product must initially be designed for it. For example, so that the value of the product appears only when there are other people there. Viber, Messengers, etc.
  • In order for a product to become viral/viral, it must enter an already existing, well-communicated community. Zinga grew on Facebook, Skype and Groupon on email lists, Viber on friends' phone book, paypal on eBay.
  • Formulas and laws of virality can be viewed
  • About how to design products for viral distribution

I’ll add on my own, virality is practically the only channel for cheap products with a check up to $10 – this includes: music, books, most mob. applications, etc. Where does it come from? Very simply, all viable businesses must satisfy two simple conditions:

  1. CAC< 1/3 LTV — стоимость привлечения покупателя должна быть не больше 1/3 выручки, генерируемой этим покупателем за время жизни (для упрощения можно взять за 1 год). Коэффициент 1/3 получен эмпирически, для России я бы брал 1/10.
  2. ROI on CAC > 100% for 6 months. Investments in attracting buyers should be returned at least in six months, for Russia I would take 1 month.

So, if our check is $10, then we can buy a buyer for no more than $3, and this immediately blocks most of the available sales channels with a large capacity. What remains is virality and media publications, which are ultimately aimed at creating an initial critical mass of users. And without virality, everything quickly fades. The second option is to work locally. It makes no sense to sell cheap things online (see the reasons above), but they sell quite well offline, in outlets with high traffic. Our hostel is just this case - with a check of about 500 rubles. per day. But no one is stopping us from raising the average check, ARPPU and LTV, right?

A couple of ideas for promoting the hostel through word of mouth:

  • We are making a hostel in the style of "a shelter for those who have been kicked out of their homes by their wife." It is interesting to talk about this, it usually happens regularly, most likely it will lead friends in misfortune.
  • We are making a hostel in the style of a "dorm" with dedication to students - for graduates of KubSU (where I started studying at the Physicotechnical Institute, before transferring to MEPhI), who want to experience nostalgia.
  • Perhaps the best audience will be business travelers of companies that, in order to earn extra money, rent hostels and buy checks for expensive hotels. Those who are reimbursed by the company. For them, you can make a “business hostel” with a photo wallpaper of the lights of New York or a minimalistic white, office version.

Channel #2 Media and PR/ Public Relations/PR

infographics from IAB Russia for 2015

There is a fundamental difference between online and offline publications. There is no limit on the number of pages/space on the blog - so when you write there, you are doing a favor to the author of the blog (new content adds traffic). The print media has a limited number of pages, so when they write, they are doing you a favor.

How does the media work?

One of the tricky tactics to get into the media is this:

  1. We write the story ourselves on a free resource like Habr or Medium
  2. Next, we rummage through the story in the social. networks. We get the maximum likes / shares, etc.
  3. Then we add some paid advertising (promotional posts on facebook) - for additional. promotion
  4. After that, we write to journalists and opinion leaders that the news is cool and has attracted so many things. They fumble it with their audience

The media is very useful, especially if you are going to raise investments. Press attention - ext. confirmation that the project is in demand. Although, if the media actively write about the project, this is a direct signal for me that the founders are running out of money and they are actively looking for the next investors. About profitable projects that are doing well, the press does not write so often.

A couple of ideas for promoting the hostel through the media:

  • Start a blog in which to keep a chronicle of events: how the premises were chosen, how the repairs were made, etc.
  • Describe the scandal in the style of “how our hostel almost became a brothel” and lead to the idea that now everyone who wants to settle down must undergo mandatory registration with passports, etc.

Channel #3. Scandalous PR. Events that attract attention / Unconventional PR

This is a continuation of the previous paragraph, but highlighted in a separate category. Examples of such non-standard events:

  • ice cream for all Uber customers.
  • Elon Musk's presentation of the Tesla battery, when the entire building was powered by their own batteries.
  • a piece of ice with the inscription "PayPal - freezes your money" at the entrance to the conference.
  • something special for customers. Handwritten letters and gifts from the founders.
  • subsidized Groupon shares for Strubucks. When they bought certificates for 300 rubles. and sold to subscribers for 50 rubles. (subsidized 250 rubles for each certificate). At the same time, we received both PR and buyers, and cheaper than through conventional channels.

A couple of ideas to promote the hostel through non-standard events:

  • Arrange a free workshop on washing sheets, assembling furniture and painting walls in a hostel. The method used by Tom Sawyer to paint the fence.
  • A room with a “demobilization train” like in the DMB movie or arrange a “student initiation”

Channel #4. Contextual advertising / Search Engine Marketing - SEM

Why is context good? People realized the need and even formulated it. They made a gigantic effort to type this query into the search box. Small businesses spend over $100M (!) daily on Google Adwords Key points to keep in mind when creating PPC ads:

  1. In contextual advertising, you need to strictly separate campaigns from search and companies from affiliate networks. For Google, this is KMC (context and display network), for Yandex, YAN (Yandex advertising network).
  2. Contextual advertising from the search (Google, Yandex) is generally more effective (has a higher ROI) than teaser and targeted advertising (Facebook, VK, Mail) or advertising in the media networks of the GMS, YAN due to the fact that in the search people have already realized the need for "warm and hot traffic", and in media, teaser advertising, the needs are unconscious "cold traffic"
  3. Competent targeting (exact hitting the audience) is more important than the essence of the advertisement.
  4. In an ad with a picture, 80% of the effect comes from the picture and 20% from the text.
  5. To get traffic a) a lot b) cheap - the only way is to create a large number of advertisements for low-frequency queries. For example, you create a core of 10,000 low-frequency queries, where each word is searched 1-2 times a month (!) With almost zero competition and a high CTR, you get 10,000 relatively inexpensive target clicks. The most difficult thing is to form such a large core and create 10 thousand advertising companies. There are automation tools like k50.ru for this.
  6. The ad classic, the AIDA model - that still works:
    • Attention - attention
    • Interest / Offer - a catchy value proposition
    • Deadline - time limit. Why is it needed today, urgently.
    • Action / Call to action - call to action "click"
  7. Position = Bid*CTR*Quality Score (behavioral factors)
  8. Budget \u003d number of clicks * cost per click
  9. The first 2 ads in the search results take 80% of the targeted traffic (!)
  10. Syntax is important (!, "", +, negative keywords, )
  11. The main rule. 1 request = 1 declaration (unique utm markup). Do not try to fit multiple requests into 1 ad. It will be impossible to understand the effect.
  12. The main mistakes when creating search queries:
    • 1 ad - many search queries
    • No ODC, AIDA in ad
    • No specifics - there must be numbers, addresses, prices, !
    • There is no separation of ads into "Search" and GMS
    • No separation of ads by geography
    • Quick links, addresses, reviews are not used in the ad

A couple of ideas to promote the hostel through context:

  • Obviously, with our low check, we will not be able to use expensive high-frequency queries like “hostel in Krasnodar” (CPA will be too high), but we can focus on the “long tail” of low-frequency queries like “hostel in Krasnodar for business travelers with checks”. Naturally, if we want to get enough traffic, we will have to make a large number of low-frequency queries + narrow the geography.
  • Perhaps it will be easiest for us to use only retargeting in YAN / GMS for those who came to us from other channels, for example, from blog articles.

I haven’t finished the continuation in the form of a text, but there is in the form of a webinar.

How to test 19 types of sales channels in 21 days? Course announcement

I will send a description of the remaining sales channels (from 5 to 19) to blog subscribers by email a little later, you can subscribe in the blog on the right. Plus, watch the recording of the webinar about 20 types of sales channels

For those who want to practice and try all sales channels in 21 days - join my

It is impossible to sell or sell your products without a developed distribution system, in other words, without a distribution system for various points of sale. The word "distribute" in English literally means "distribute", and this distribution is carried out through the channels of distribution. Moreover, other sellers can buy the product for further resale, and then this communication will be related to communication. B2B(business to business) or directly private clients - the so-called communication B2C(business to customers). The chosen distribution channel influences all other marketing decisions.

In the sales system, the manufacturer - supplier of products is called "vendor" (eng. vendor - "seller"), products are produced under his trademark (for example, Intel, Compaq) and its sales partners - distributors, dealers, resellers, intermediaries in sales, as well as retailers (retailers). English merchants brought many designations of trading operations that have entered our lexicon, in addition to the word “trade” known from the school course - “trade”: used in the framework of marketing, trade marketing (trade marketing) and in methods of stimulating trade channels, trade promotion (trade promotoin), dealer (dealer) - intermediary, retail (retail) - retail trade, commerce - trade, commerce. One of the meanings of the root of the word "retail" - tail - "property inheritance". A trade operation is often called an exchange of property rights - an approach that could only have originated in the bowels of a nation specializing in trade.

By F. Kotler's definition, marketing (distribution) channel - a set of firms or individuals that assume or help transfer ownership of a particular product or service to someone on their way from producer to consumer.

There are several types of distribution channels: wholesale, mailing, specialized stores, retail, service stations and others.

1. Intellectual provision:

1) collection of information necessary for planning and ensuring the exchange - about competitors, consumers, intermediaries;

development of methods to stimulate demand (merchandising standards, information and advertising support, BtL events).

2. Organizational support:

1) adaptation of goods - adjustment of goods to the requirements of buyers (production, sorting, installation, packaging);

2) organization of goods movement - transportation and warehousing of goods;

3) ensuring the display of goods on the trading floor.

3. Communication support:

1) establishing contacts - establishing and maintaining relationships with potential buyers;

2) negotiating - agreeing on prices and other conditions for the subsequent transfer of ownership or possession;

3) provision of sales promotion programs - distribution of "persuasive" communications about the product: placement of advertisements "in store" (inside the trading floor); organization of marketing events, distribution of promotional products.

4. Financial support:

1) finding and using funds to cover the costs of channel operation;

2) acceptance of risk - the assumption of responsibility for the functioning of the channel;

3) insurance of operations.

All participants in the communication channel, to one degree or another, take responsibility for the performance of these functions. The distributor can only take over the organization of product distribution, i.e. delivery, warehousing and resale to the next player in this chain, or it can provide promotion programs for the brands being sold, for example, by arranging some kind of presentation or participating in a specialized exhibition, and thus taking part of the communication functions. But, on the other hand, the distribution system itself (especially in direct sales) will have an impact on communicative, intellectual functions.

The distribution channel depends on many factors: both the geographic location of the vendor and competitive activity, as well as the characteristics of the product: its transportability, conditions and shelf life (this is especially important for vegetables, flowers), and the breadth of the assortment.

Distribution channels can be of three types:

Direct channels associated with the movement of goods and services without the participation of intermediary organizations. They are most often established between manufacturers and consumers who control the relationship themselves and have limited target markets. This is where direct marketing comes into play.

indirect channels associated with the movement of goods and services through one or more independent intermediaries from the manufacturer to the consumer. Such channels are usually used by enterprises and firms that, in order to increase their markets and sales volumes, agree to give up part of the marketing functions and costs and, accordingly, from a certain share of control over sales, and are also ready to reduce contacts with consumers.

mixed channels combine the features of the first two channels of distribution.

Naturally, the manufacturer is interested in selling his products directly to consumers in the presence of their own regional warehouses. But before resorting to direct marketing (direct marketing), the manufacturer must make sure that the company's products can be fully sold.

Direct marketing in the distribution system is used, as a rule, in complex technological production, when the manufacturer, on his own, provides the installation of complex equipment directly at the consumer's enterprises; when the enterprise works under the order; when the circle of his clients is limited to a small group of consumers, etc. The concentration of consumers in geographically dispersed areas also reduces the presence of sales branches, and as a result, direct contacts are more effective.

Distribution channels can also be characterized by the number of their constituent levels.

Distribution channel layer - this is any intermediary who performs some work to bring the product and ownership of it closer to the final buyer.

The length (length) of the channel is determined by the number of intermediate levels present in it (Figure 3).

Distribution channel width- the number of participants at the same level.

Figure 3 - Distribution channels

In particular, there are:

Zero level channel(direct channel) - consists of a manufacturer selling goods directly to the final consumer.

A peer-to-peer link includes one intermediary. In consumer markets this intermediary is usually a retailer, while in industrial markets it is often a distributor or broker.

Bilayer channel- includes two intermediaries. In consumer markets, wholesalers and retailers become such intermediaries; in industrial markets, it can be an industrial distributor and dealers.

Three-level channel - includes three intermediaries. These three intermediaries can be: a large wholesale enterprise, a small wholesale enterprise, and a retail trade enterprise.

There are more levels, but they are less common. From the producer's point of view, the more layers a distribution channel has, the less control it has.

Table 2 - Advantages and disadvantages of distribution channels of different lengths

Channel type Advantages Flaws
1. Direct sales · High control over prices, the possibility of their differentiation by region · Access to information about the market and the consumer · No markup of intermediaries · Ability to form a stable group of customers High selling costs Significant transportation costs Significant warehousing costs
2. Selling through an intermediary Moderate implementation costs · High intermediary margins · Relatively high end-customer prices · Limited control over territorial coverage
3. Selling through a multi-level system of intermediaries Relatively low costs No need for market research and forecasting No need to solve logistics issues (warehouses, transport, etc.) · Low level of price control · Isolation from the end consumer and, accordingly, lack of information about him · The need to establish closer contacts with intermediaries · Organization of a system for informing and training them

Since the main task of a trading and intermediary firm is to sell products, it is natural that the performance of such an enterprise largely depends on the effectiveness of its marketing system. At the same time, the important points are the costs of creating and operating a marketing system, the versatility and uniqueness of the marketing system, its effectiveness in certain conditions.

The sales system of an enterprise can be built in various ways. Distribution system classification:

Traditional distribution system - consists of an independent manufacturer, one or more wholesalers and one or more retailers. All participants in the system are independent and not controlled by others, they pursue the goal of maximizing profits only in their area of ​​the marketing system.

Vertical distribution system - operates as a single system, includes a manufacturer, one or more wholesalers and retailers pursuing common goals. As a rule, one of the participants plays a dominant role. Vertical systems can be corporate, contractual or administrative.

A horizontal marketing system is an association of two or more firms in the joint development of opening marketing opportunities in a particular market.

The main types of trade and marketing activities:

Direct sales - establishing direct contacts with buyers (usually used when selling means of production).

Indirect sales - the sale of goods through trade organizations. Manufacturer independent (for consumer goods).

Intensive sales - connection to the sales system of all possible resellers (for consumer goods, branded goods).

Selective (selective) sales - provides for limiting the number of resellers, depending on the nature of the clientele, service capabilities, the level of staff training, etc. (used for goods requiring special maintenance, as well as for expensive prestigious goods).

Targeted sales - aimed at a specific group of buyers (market segment).

Non-targeted sales - marketing activities are addressed to all groups of buyers.

To achieve commercial success when using one or another type of sales activity, you need to carefully analyze all financial issues, conduct a comparative description of costs and results.

When forming a marketing system for a certain product, a trading and intermediary firm has to take into account many factors, the main of which are:

Features of end consumers - their number, concentration, the value of the average one-time purchase. The level of income, the pattern of behavior when buying goods, the required mode of operation of the seller, the services of sales personnel, etc.

The capabilities of the enterprise itself are its financial position, competitiveness, the main directions of the market strategy, and the scale of production.

Product characteristics - type, average price, seasonality of production and demand, requirements for storage and transportation.

The level of competition and the marketing policy of competitors - the number and concentration of competitors, their marketing strategy and tactics, relationships in the sales system.

Characteristics and features of the sales market - actual and potential capacity, customs and trade practices, density of distribution of buyers, average income of buyers.

Comparative cost of various marketing systems.

The development of a marketing policy is preceded by an analysis of the effectiveness of the existing marketing system as a whole, and by its individual elements, the compliance of the marketing policy pursued by the company with specific market conditions. The analysis is carried out not only by quantitative sales volumes by product, but also by regions, but by the whole complex of factors influencing the size of sales: the organization of the sales network, the effectiveness of advertising and other means of sales promotion, the correct choice of the market, time and methods of entering the market.

The analysis of the sales system involves identifying the effectiveness of each element of this system, evaluating the activities of the sales apparatus.

The justification for the effectiveness of the marketing policy is a multivariate calculation of distribution costs and the choice on its basis of the optimal variant in the main areas of marketing activities in the target market or its segment.

An important part of product marketing management is the selection of product distribution channels. This is a complex management decision that affects all other marketing decisions.

The sale of products in most cases is carried out through intermediaries. Intermediaries, thanks to their contacts, experience and specialization, make it possible to ensure the wide availability of goods and bring them to target markets.

With the help of intermediaries, it is possible to reduce the number of direct contacts between producers and consumers of products. Supply and marketing organizations, large wholesale depots, exchange structures, trading houses and shops can act as intermediaries.

Distribution channels can be of three types: direct, indirect and mixed.

Direct channels are associated with the movement of goods and services without the participation of intermediary organizations. They are most often established between manufacturers and consumers who control their own marketing program and have limited target markets.

Indirect channels are associated with the movement of goods and services, first from the manufacturer to an unfamiliar intermediary participant, and then from him to the consumer. Such channels usually attract enterprises and firms that, in order to increase their markets and sales volumes, are willing to give up many marketing functions and expenses and, accordingly, a certain share of control over sales, and are also ready to slightly weaken contacts with consumers.

Mixed channels combine the features of the first two distribution channels.

The choice of channels and methods of marketing in the market depends almost entirely on the nature of the product. The mechanism for making decisions about distribution channels is based on the economic and technological feasibility of moving goods along such a path as to bring benefits to the manufacturer, intermediaries and the end consumer. If any element of the chain does not receive the calculated benefit, the distribution channel will be inefficient.

Often, distribution channels develop "spontaneously". For example, there were several wholesalers with whom the company worked for more than one year, and over time, ties are either strengthened, or a search for new partners begins.

For "spontaneously" appeared channels, the manufacturer usually lacks control over prices when reselling goods by intermediaries, over the quality and quantity of the wholesalers' customer base, and the timeliness of customer service support by intermediaries. All this leads to uncontrollability and impossibility of planning sales by channels.

How to reverse this situation and choose those channels that will “deliver” the product to the target consumer segments at minimal cost? To answer this question, you can use the well-proven in practice integrated assessment of distribution channels. The purpose of applying this technique is to develop sales planning for distribution channels not on the basis of intuition or "from what has been achieved", but on the basis of complete information about the prospects of a particular channel.

Work with distribution channels must begin after the company's market orientation has been determined, i.e. the main target groups of clients, development strategy and behavior in the market are determined. After that, an assessment of the channels is carried out. The most commonly used criteria are:

  • 1. Profitability of channels.
  • 2. The degree of their compliance with consumer requirements.
  • 3. Manageability, i.e. the possibility of further control over the movement of goods and prices.
  • 4. The level of competition for the opportunity to work with the channel.
  • 5. Perspective of channels in terms of long-term trends.

For each of the criteria, it is necessary to determine a scoring system that would reflect how the criteria are expressed. In our practice, a 10-point evaluation scale is usually used: 1 point - the criterion is minimal, 10 points - the criterion is most pronounced.

In general, the following indicators are subject to technical and economic analysis:

  • - determination of the number of possible intermediaries based on the selling price (with and without discounts), the prevailing market price and the likely trade margins that each channel participant will make;
  • - selection of the type of intermediaries on legal and economic grounds and on the volume of goods that they are able to purchase;
  • - according to what control scheme to organize the work of your own channel (functional-linear, divisional or matrix);
  • - determination of the principles of mutual settlements between the manufacturer and intermediaries;
  • - assessment of the variability of distribution logistics:
    • a) warehouse: on the territory of the enterprise or closer to the consumer;
    • b) transport: own or rented

The criteria by which you can decide on the sales structure of the selling enterprise are presented in Table 1.

The prospects of channels need to be assessed in terms of long-term trends. Due to the rapid development of markets in the Republic of Kazakhstan, the structure of distribution channels is changing significantly.

According to experts, in the near future there will be a specialization of the wholesale link in the distribution chain: logistics companies and specialized wholesalers will have a greater advantage. The group size of traditional wholesalers is shrinking.

Table 1 Criteria for choosing a marketing channel

Accountable

characteristics

indirect channel

Comments

short

Buyer characteristics

Numerous

the principle of reducing the number of contacts plays an important role

High concentration

low cost per contact

Major purchases

the costs of establishing contact are quickly amortized

Irregular shopping

increased costs for frequent and small orders

Prompt delivery

availability of inventory near the point of sale

Product characteristics

Consumable Products

the need for fast delivery

Large volumes

minimization of transport operations

Technically uncomplicated

low maintenance requirements

non-standardized

the product must be adapted to specific needs

New goods

careful "monitoring" of the new product is necessary

high value

the costs of establishing a contract are quickly amortized

Firm characteristics

Limited financial resources

costs are proportional to sales volume

Full range

the firm can offer a full service

Good control required

minimizing the number of screens between the firm and its market

Widespread fame

good reception from the marketing system

Wide coverage

sales must be strong

At the same time, the share of organized retail in retail sales is growing. Retail chains are a promising channel in terms of long-term trends. Modern trends in the development of distribution channels are monitored and published regularly.

When forming a channel for the distribution of goods, the decision on the structure of the channel is put forward in the first place, i.e. about the number of channel levels and about the specific composition of the channel members. When identifying possible options for distribution channels, it is necessary to determine the type of intermediaries used. The classification of intermediaries can be carried out according to a combination of two characteristics: on whose behalf the intermediary works and at whose expense the intermediary conducts its operations.

Table 2 Types of intermediaries in distribution channels

Dealers are wholesale (rarely retail) intermediaries who conduct operations on their own behalf and at their own expense. The goods are purchased by them under a supply contract. Thus, the dealer becomes the owner of the product after the full payment for the delivery. Relations between the manufacturer and the dealer are terminated after the fulfillment of all conditions under the supply contract.

There are two types of dealers. Exclusive dealers are the only representative of the manufacturer in this region and are endowed with exclusive rights to sell its products. Dealers cooperating with the manufacturer on a franchise basis are called authorized dealers.

Distributors are wholesalers or retailers who operate on behalf of the manufacturer and at their own expense. As a rule, the manufacturer grants the distributor the right to sell his products in a certain territory and for a certain period of time. Thus, the distributor is not the owner of the product. Under the contract, they acquire the right to sell products. The distributor may act on his own behalf.

Commission agents are wholesale or retail intermediaries who conduct operations on their own behalf and at the expense of the manufacturer. The commission agent is not the owner of the products sold. The manufacturer remains the owner of the product until it is handed over and paid for by the end consumer. The contract for the supply of products is concluded on behalf of the commission agent. Thus, the commission agent is an intermediary only for the committent, and not for the end consumer, whose money is transferred to the commission agent's account.

Agents are intermediaries acting as a representative or assistant of another person (principal) who is the main person in relation to him. As a rule, agents are legal entities. The agent enters into transactions on behalf of and at the expense of the principal. Universal agents perform any legal action on behalf of the principal. General agents conclude only transactions specified in the power of attorney.

Brokers are intermediaries in the conclusion of transactions, bringing counterparties together. Brokers do not own products like dealers or distributors, and do not own products like distributors, commissioners or agents. Unlike agents, brokers are not in a contractual relationship with any of the parties to the transaction and act only on the basis of individual orders.

Each manufacturer, on the basis of marketing research on the sales markets for their products, determines the structure of possible distribution channels, their relationship with specific categories of consumers and with each other.

After choosing the types of intermediaries in the distribution channel, it is necessary to determine the number of these intermediaries. Marketing has developed three approaches to solving this problem: intensive distribution, exclusive distribution, and selective distribution. Intensive distribution involves the provision of stocks of products in the largest possible number of trade enterprises. Exclusive distribution implies a deliberately limited number of intermediaries selling a given product within the marketing territories. Selective distribution is a cross between methods of intensive and exclusive distribution.

Although marketing is the final stage of the economic activity of a commodity producer, in market conditions, marketing planning precedes the production stage and consists in studying the market situation and the company's capabilities to produce products in demand, as well as in drawing up sales plans, on the basis of which supply and production plans should be formed. A well-built system of organization and control of sales is able to ensure the competitiveness of the company. Considering the above, it is recommended to determine a sufficient amount of information for the company and its divisions so that they can make justified decisions in the field of sales management.