New indirect distribution channels in marketing. Encyclopedia of Marketing. As practice shows, direct sales are profitable if

The choice of distribution channels for goods is difficult marketing solution, since they most directly affect the effectiveness of the implementation of the marketing concept in the enterprise.

Sales channel (distribution)- a set of firms or individuals involved in the process of promoting a product from the producer to the consumer.

Depending on the number of intermediaries in the distribution system, the level of the channel is set, which can be law firm or an individual performing the functions of moving goods from the producer to the consumer. The number of intermediate levels can characterize the length of the channel.

Classification of distribution channels depending on the number of levels:

Channel zero level(also called a direct marketing channel) consists of a manufacturer selling a product directly to consumers. (producer-consumer)

Intermediary for single-level the channel in the consumer goods market is usually a retailer, and in the industrial goods market - a sales agent, or a broker (intermediary). (manufacturer-retailer-consumer)

Intermediary for two-level channel in the consumer goods market is usually a retailer, and in the industrial goods market - an industrial distributor (trader) dealer (wholesaler or retailer). (manufacturer-wholesaler-retailer-consumer)

At three-level The channel between wholesale and retail is usually a small wholesaler who buys goods from large merchants and resells them to small trade enterprises that large wholesalers, as a rule, do not serve. (manufacturer-wholesaler-small wholesaler-retailer-consumer)

Each distribution channel has its own advantages and disadvantages. The number of channel levels and the composition of its subjects (members) are important in the formation of a distribution channel. The manufacturer must determine the structure of possible distribution channels on the basis of marketing research of the markets for its products and the available funds to cover the costs of its implementation by its own supply and market structures. Thus, when developing a marketing policy, one should proceed from the goals that the enterprise wants to achieve, the policy of the enterprise as a whole, the marketing strategy, and the coordination of sales decisions with other elements of marketing. The process is characterized by cyclicity - with the choice of a distribution channel and the adoption of decisions on the physical distribution of goods, these decisions should be reviewed in accordance with the constant dynamism of the environment. The commercial understanding of marketing as a method and tool of marketing, meaning only the search and selection of a buyer (customer) of the products that the company has produced or is able to produce, does not correspond to the developed level of market relations. The orientation of production only to the sale of goods is the cause of the constant inconsistency between supply and demand, as well as the crisis of overproduction, since the appearance and production characteristics of the goods are weakly or not at all linked to the actual needs of the market. The concept of interaction marketing is based on the principles of active involvement in the process of production, distribution, sale and consumption of goods by all participants in the marketing system.

Sales channel width - the number of independent sales participants at a particular stage of the supply chain. With a narrow distribution channel, the company sells its product through one or a few sales participants. With a wide - through many.

If an enterprise produces, say, non-food products, it will be able to use the services of one wholesale buyer (for example, a supermarket). This will be a narrow distribution channel. Another option is possible - various wholesale buyers (companies wholesale trade, independent agents, specialty stores). In this case, we are talking about a wide distribution channel.

It makes sense for a manufacturing enterprise to organize its own distribution network if:

1. The amount of goods sold is large enough to justify the cost of organizing a distribution network.

2. The number of consumers is small, but they are located in a relatively small area.

3. This product requires highly specialized service.

4. The volume of each delivered batch of goods is sufficient to fill the wagon container, i.e. corresponds to the so-called transit norm. In this case, there is no cost and time spent on transshipment of goods in warehouses, the goods are delivered directly from the factory shops.

5. There is a sufficient network of own storage facilities in those sales markets where the company trades.

6. Produced highly specialized for its intended purpose or for specifications buyer (on orders) goods.

7. The product is sold on a vertical market, i.e. where it is used, albeit in several industries, but by few consumers in each of them. This makes it easier for the manufacturer to maintain constant contact with consumers.

8. The price of a product on the market is subject to frequent fluctuations, and the manufacturer is required to make a change in the pricing policy immediately and without coordination with intermediaries.

9. The selling price far exceeds the cost of producing the goods, this compensates for the high costs of creating your own network.

10. The manufactured goods require changes in their design, which is more convenient to do when the manufacturer is directly involved in the sale.

The transfer by the manufacturing enterprise of sales to resellers and the lengthening of the distribution channel is dictated by the following circumstances

1. A horizontal market in which there are many consumers in each sector of the economy. This requires the creation of a powerful sales network, the expenditure of significant funds, which only manufacturers can afford.

2. The sales market is scattered geographically, so direct contacts with consumers are unprofitable.

3. When supplying large quantities of goods to a small number of wholesalers, you can save on vehicles.

4. The need for frequent urgent deliveries of small consignments, for which it is better to use the warehouses of a reputable wholesaler.

5. The difference between the selling price of the goods and the cost of its production is small, which means that the maintenance of one's own trade is unprofitable.

Sales organization involves the unification of all employees performing an interconnected set of works in the process of ensuring the movement of 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 distribution network and beyond, coordination and control of activities in the distribution system (Figure 6.1). In addition, the organization of sales covers activities for the formation, selection of specialists involved in the work in the sales service, assessment of the quality and results of the work of subordinates, as well as measures for material and moral incentives for personnel.

In general, the activities of sales department employees can be based on a model of relationships between one or another representative of the sales service and organizations in the formation and implementation of purchases of goods.

Figure 6.1 - The main functions of the organization in the sales system

The relationship between the sales agent, the seller firm, the buyer firm and the purchasing agent is illustrated by the model shown in Figure 6.2. The construction and analysis of such interaction models is especially effective when competing sellers also come into contact with the buyer firm.

Figure 6.2 - Model of the four-way relationship between organizations in the procurement of goods

Sales employees, along with typical functions, can perform other duties based on the specifics of the situation in order to increase sales and gain the prestige of the company. A generalized description of the work that, for example, a sales agent performs, may include: sales; work with orders; customer service, work with distributors, service centers retail; administration; conferences (meetings; training) recruitment; cultural events; business trips. Depending on the characteristics of the industry that the agent serves, the functions and actions performed by the agent may vary.

Implementation policy is central to the work of the marketing department. Sales is the final stage of all activities, involving the development of channels and participants in the sale of goods and services with maximum benefit and least loss. In order for this stage to become successful, you need to decide on the methods and concepts of marketing goods. Even powerful advertising campaign does not guarantee delivery of products directly to the consumer. The formation of a marketing policy, the choice of a distribution channel is an important stage of marketing.

The essence of distribution channels

Communication between the market and production is carried out through distribution channels. The organization of product sales is an analysis of supply and demand, the search for new sources of sales, the study of needs in a particular area. The marketing policy is developed as a whole for the entire company or separately for each group of goods. Production must begin, focusing on certain forms and methods of marketing policy. Sales channels play a very important role. The developed markets should not become the final stage of work in this area. It is necessary to improve methods and forms, select new strategies and more effective distribution channels. A constant selection of market segments should be carried out, but at the same time, one should not forget about the old, time-tested participants in the process of selling products.

What is a distribution channel

Distribution channels are an association of organizations and individuals that transfer the right to a product or service to each other. This is the path from the manufacturer of products to a specific consumer. Such chains are necessary for several reasons. Firstly, the use of distribution channels makes it possible to reduce the financial costs that occur during implementation. Secondly, the sale of goods and services occurs in the most efficient way. And the last: there is an increase in sales volumes, and the product or service becomes more accessible to the end consumer. All these advantages are available only if the distribution channels are well organized. The performance indicator in this case is the uninterrupted delivery of products from the manufacturer to the final consumer. Distribution channels for products may include the following links: manufacturer, wholesaler, retailer and consumer.

Marketing Systems

There are certain systems of ways to sell products. The proprietary system involves the use of a network of intermediaries, which belongs to one company. Contractual is used when working with several links on a contract basis. Typically, the marketing system of an enterprise has its own distribution channels for goods and services. These divisions are engaged in the sale of products in the foreign and domestic markets. Each employee has their own powers. Own distribution system can have subsidiaries - both in their own country and abroad. Representatives of the company can be dealers in the country and abroad, temporary and permanent sales representatives, salesmen, bureaus, agencies and outlets. The firm may have joint trade enterprises, enter into agreements and participate in sales associations.

Distribution channel levels

Sales channels in marketing are classified depending on the levels. The level is understood as intermediaries who perform the same functions, bringing the product closer to the buyer. The producer and end user of the product are also members of the distribution channel. Let's consider them briefly.

Zero level means that the goods are delivered by the manufacturer directly to the consumer. This is a direct distribution channel.

On the one-level channel between these two categories is the retailer. If this is an industrial market, then a broker or distributor can act as an intermediary.

The three-level level consists of manufacturer, wholesaler, small wholesaler and retailer. A small wholesaler buys small quantities of goods from a large wholesaler and redistributes them to trade. The distribution channels of the enterprise should be optimal. Therefore, you should choose the best combination.

Which channel to choose

Here it is necessary to rely on the specifics of the company, its specialization and overall marketing strategy. For some, it will be more profitable to reduce the number of intermediaries and thereby reduce costs. The direct distribution channel does not require additional stocks of products, the cost of their storage and processing. But if you use the services of intermediaries, then there is no direct contact with the consumer. Marketing Con

Troll is reduced, and the cost of further promotion of the product is reduced. You can choose from multiple promotion channels. This will allow you to conquer various market segments. The use of different channels expands the scope of activities.

Underwater rocks

The wrong choice of distribution channel can lead to serious consequences. Some firms try to get maximum sales at the initial stage by any means. This is a short term strategy. More profit can be obtained by establishing a stable, long-term distribution channel. This is long-term trading, reliability and stability. The risk of unforeseen circumstances in working with permanent intermediaries is very small. Therefore, such relationships justify themselves in the long term more than a quick sale of products.

Breadth of distribution channels

This indicator depends on the number of participants at a particular level. A narrow distribution channel involves the use of, for example, one wholesale buyer. If the product is sold to several wholesalers, then we are talking about its expansion. Wide channel is preferred. This factor means that the company has an expanded market. Such a network is more reliable. Even during the absence of one wholesaler in the market, others will work stably. Sales channels, distribution of goods and services should be selected taking into account production volumes. Their stable operation requires constant stocks of goods and their continuous production.

Own distribution channels

Sometimes, to reduce costs and simplify the implementation process, it makes sense to create your own distribution network. Such a decision should only be made if certain conditions are met. First, sales revenue must be large to cover the costs of organizing such a network. That is, the need for this arises in the case of the production of a large number of products. If the sales market is small and located in a small area, then you can also organize a distribution network. A specialized network is necessary if the product requires special service.

In the case when the volumes of the supplied goods are large (for example, a wagon), and its deliveries do not require additional costs for unloading or transshipment, it is also advisable to organize several points for the sale of products. But it should be remembered that such a system requires a large number of storage facilities located in the places of retail sale of goods. This will allow uninterrupted supply of stores with the necessary products.

When are intermediaries needed?

Sometimes creating your own trading network is not appropriate. This usually happens when the market has a horizontal structure. There are end users in many sectors of the economy. In order to provide everyone necessary quantity products, it is necessary to create a very extensive network. This requires significant costs and large-scale reconstruction. The creation of such a trading network is only possible for large manufacturers.

If the geography of the market is very diverse, then it is easier to use the services of intermediaries. When delivering goods to wholesalers in in large numbers transport costs are reduced. If urgent deliveries are required, it is better if the goods are always in the warehouses of wholesalers. It is unprofitable to create your own trading network if the net profit is not high.

Choice of intermediary

The choice of an intermediary is the most important step in creating a distribution channel. The quality and speed of delivery of goods to the final consumer depends on this. A good intermediary is the key to successful transactions and the entire course of commercial transactions. There are two stages to go through here. The first is the direct choice of an intermediary for the sale of goods. The second is the control and stimulation of its activity. Distribution channels in marketing can be very branched, but at the initial stage, the delivery of goods to the final consumer should be controlled.

What you need to know when choosing an intermediary? Reveal his commercial connections. It can be associated with competitors and harm your company. It is better to choose someone who specializes in the implementation of your category of goods. Such an intermediary has a wealth of experience and a developed network of retailers who cooperate with it. Preference should be given to a large wholesaler with a good reputation. It would not be superfluous to find out the sources of it financial resources(credits, loans). Of great importance is the material and technical base necessary for the successful and continuous sale of products. The level of training of the personnel working for the intermediary is also important. For starters, you can conclude a short-term contract to test your partner in business. It is imperative to meet on the territory of the intermediary in order to personally verify that all the necessary conditions for implementation. And one moment. The more intermediaries you have, the lower the risks associated with implementation.

The characteristics of distribution channels can be given in an even more detailed form. Everything must be thought through carefully. possible options to create an optimal channel that will work, supplying consumers with products uninterruptedly. This will not only bring additional profit, but also raise the status of the company.

DISTRIBUTION CHANNELS

Sales channels- a system of interrelated legal entities and individual entrepreneurs that make a product or service available for consumption or use

The development of product distribution channels is carried out in order to achieve the main task - building efficient structure sales network, which will allow to establish the sale of products.

Possible different kinds sales channels:

• straight. Independent marketing of products without intermediaries;
• indirect. Participation of a number of intermediaries. Short chains - with the participation of 1 intermediary, long - more than one.

Indirect distribution channels are divided into the following types:

• single-level - 1 intermediary is involved in the implementation process. In industrial markets, the middleman is a distributor or broker; in consumer markets, it is usually a retailer;
• two-level - 2 intermediaries are the link between the producer and the consumer. For industrial markets– distributor and dealer, consumer – retailer and wholesaler;
• three-level. Products pass through 3 intermediaries. For example, a seller of large lots, a retailer and a seller of small wholesale lots.

Each option has individual advantages and disadvantages, a specific option should be selected depending on the product.

Intermediaries in the chain of movement of goods

After choosing whether the channel will include intermediaries, the type and number of these intermediaries must be determined. This is necessary to ensure the most efficient implementation. Intermediaries in terms of marketing policy can be as follows:

• Dealers are wholesale intermediaries who conduct transactions at their own expense and on their own behalf. Become the owners of products purchased for the purpose of resale.
• Distributors are retail and wholesale intermediaries who participate in the promotion at their own expense, but on behalf of the manufacturer. They sell products on the basis of the right received from the manufacturer.
• Commission agents are retail and wholesale intermediaries who act at the expense of the manufacturer, but on their own behalf. The end user transfers ownership of the product after receipt of payment.
• Agents are legal entities acting for and on behalf of the principal, receiving remuneration for the provision of their services.
• Brokers are intermediaries who are engaged in establishing links between legal entities interested in promoting products. They receive a percentage of sales.

In the distribution chain, the main functions are as follows:

• external logistics. Measures to ensure the availability of products for the buyer.
• External marketing. Collection of marketing data, including information about the needs and desires of your target audience. Promotions, advertising and other measures to promote products.
• external service. Gaining reputation with products, maintaining and enhancing its status.

To determine the types and number of these intermediaries, marketing involves 3 approaches to the formation of distribution channels:

• Exclusive distribution - the number of intermediaries is limited to control the distribution of goods to predetermined markets.
• Intensive distribution - involvement of intermediaries in the maximum number to equip products maximum number territories.
• Selective distribution - a combination of features of both options. It is used by manufacturers who seek to control each stage of product distribution at lower costs.

Which distribution channel to choose

The search for distribution channels is carried out in four stages:

1. The sales strategy is determined.
2. Alternative channels are defined.
3. Suggested channels are evaluated.
4. Partners are selected.

First of all, the company's management should decide on the sales policy strategy - how the system will be organized, through a dealer or its own network, what types of resellers should unite the document flow, etc.

Among the main criteria for choosing a channel for distribution, we note:

• Economic criteria - the level of sales and costs.
• Control criteria - it is necessary to provide means of justification, evaluating the effectiveness of a particular channel according to criteria in the form of interaction during stimulation, delivery period to the consumer, etc.

• adaptive criteria. It is worth setting for each channel a certain period of entry into operation and the lack of proper flexibility. In the same period, other distribution channels may be more effective.

Partners should be selected based on the following criteria:

1. the level of skills and knowledge in the distribution of goods from the manufacturer to consumers, the possession of strategies for a particular market;
2. the amount of knowledge about the conjuncture of a particular market where the sale of products is offered;
3. the availability of the necessary financial resources;
4. availability of proper resources (material base).

How to manage product distribution channels?

The traditional classical scheme is a manufacturer, several wholesalers and retailers. Each individual link seeks to achieve maximum profit, sometimes sacrificing the benefits for the entire structure.

vertical marketing. AT this system includes a manufacturer, several intermediaries working as a single entity.

Horizontal marketing is the development of a single system involving several separate enterprises in order to establish a joint sale of products.

Multi-channel marketing - at the same time, the manufacturer resorts to different distribution options, with independent channel management.

The specificity of the channels is that after choosing specific options, it will be difficult to change something. Therefore, before choosing a specific implementation chain, the following factors should be analyzed:

• Analysis of sales markets.
• Analysis of the profitability of a certain highway for goods.
• The ability to control the flow of goods.
• The degree of relevance of the channel to its target audience.
• Estimated sales level.
• Minimum expenses Money and resources.
• Share of the maximum possible profit.
• The degree of competition.
• There may be other factors, depending on the specifics of the particular industry.

How does price affect sales volume?

It is on the price of products that the profit and profitability of the project ultimately depends. Prices can be of the following main types:

• The production price is the sum of all marketing and production costs, as well as the expected profit - usually in the order of 40-60% of the retail price.
• Wholesale price - with the summation of the production price, all marketing and production costs of the wholesaler, his profit. This price is equal to 60-70% of the retail price.
• Retail price. The sum of the wholesale price and all the costs of the retail trade plus its profit.

The company usually determines and analyzes the prices of competitors, with a study of the real situation in the market, setting the range of effective prices. The maximum price of the goods is determined by the upper limit of the future price, above which it is problematic to sell products. The basis of the definition minimum price becomes an estimate of future production costs, below which production will be unprofitable. An accountant should be involved in determining the minimum allowable price; to evaluate the maximum, you should contact a sales specialist.

As a rule, an enterprise chooses one of 5 main pricing methods:

full cost method.

A certain amount is added to the total amount of expenses, which corresponds to the rate of return. If the production cost is taken as a basis, then the allowance should cover the costs for sale with a profit. In any case, indirect taxes are supposed to be included in the surcharge and customs duties transferred to the buyer.

Benefits and weaknesses method:

Full coverage of all expenses.

It turns out the planned profit.

Ignoring the elasticity of demand.

The most common method is for enterprises with a clearly defined product differentiation to calculate prices for traditional goods, also when determining prices for completely new products, which has no price precedents. An effective option for goods of reduced competitiveness.

Manufacturing cost method.

Adding to the total cost of purchased raw materials, components, materials and semi-finished products is also the amount that corresponds to the contributions of the enterprise to form the cost of production (rate of return, percentage).

Pros and cons of the method:

Accounting for the enterprise's contribution to increasing the value of products.

Doesn't fit this method for long-term pricing decisions.

Complements, but does not replace, the full cost method.

Its use is widespread for special cases and specific conditions:

• Making decisions on increasing the mass of profits by increasing the volume of production, on continuing or refusing to compete.
• Making decisions on changing the assortment structure of production.
• Making decisions on one-time (non-mass, individual) orders.

Marginal cost method.

Addendum to variable costs per unit of production of the amount (percentage) that covers costs and provides a sufficient rate of return.

Pros and cons of the method:

More significant pricing options.

Simplification of the introduction into accounting practice and reporting of the classification of costs into conditionally fixed and conditionally variable.

The basis of the method is the non-Marxist theory of value, which is still poorly mastered in Russia.

The introduction of the method leads to rejection by some "business executives" because of the "foreign" ways of doing business.

We can apply the method to almost any enterprise.

Return on investment method.

The project must provide profitability not less than the cost borrowed money. Adding to the amount of costs per unit of production the amount of interest on the loan.

Pros and cons of the method:

This method is the only one that takes into account the density financial resources required for the production and sale of products.

High interest rates for a loan, their uncertainty over time in terms of inflation.

Effectively, the method is suitable for enterprises with a significant range of products, each product in which requires certain variable costs. This method is suitable for traditional goods with an established market price, and for new products. An effective method for making decisions about the volume of production of new products for the enterprise with a known market price.

Methods of marketing evaluations:

• method of assessing the reaction of the buyer - the seller's main task is to determine the price at which the buyer will definitely take the goods;
• blind offer method or tender method - similarly, buyers take part in the tender. The participant who offers the price that provides the maximum profit for the seller wins. The methods of this group are characterized by uncertainty quantitative assessments. Prices are often set almost entirely arbitrarily.

Practitioner tells

Maxim Novikov, Development Director, Biocond

It is the development and implementation of a unified sales system that will ensure the full-fledged operation of disparate points of sale. If sales are organized according to a mixed scheme, in case of their fall, it is easiest to blame partners who do not protect your interests and promote brands of other manufacturers at the same time. But except for you, as a distributor, no one is to blame for this situation, since from the very beginning the priority was to increase sales, and not create a clear and well-coordinated sales system that is the same for all participants in the process. Do not forget that your partners are much more important to profit, not to develop your trademark. And if you plan to sell goods through intermediaries, it is very important to understand that before building a sales chain, you need to create sales rules that are the same for all links. These rules should apply to both wholesalers and retail sales. Non-compliance with the conditions by any of the participants in the process should be stopped - up to the refusal of further cooperation after the expiration of the contract. No single sales link can be more important to you than the smooth operation of the system as a whole.

Focus on the basic principles of working with partners, which will allow you to bring the company to new level sustainable development. It is very important to convey to all participants in the process that it is you, as a distributor, who is the guarantor and controller of compliance with the implementation rules.

Thus, I think that, first of all, it is necessary to create a system for the sale of goods that describes all the requirements for its participants, their rights and responsibilities. After that, regardless of the chosen distribution channels, all sales participants will be involved in an efficient and mutually beneficial process. It makes no sense to improve a single sales system after you have started selling through different channels: you will be forced to resolve many conflict situations if in new system the partners with whom you started cooperation at the very start of the company's development will not fit in.

How to analyze product distribution channels?

Alexey Sharapanyuk, Operational Marketing and Business Development Director, Renault Trucks Vostok, Moscow

Stage 1. We decide where we distribute or want to distribute the goods. This requires dividing the market into segments. Different criteria are suitable for segmentation, including the type of consumers or regions. When too complex segmentation Several types of sales valuation are needed. However, the choice is made in favor of 1-2 principles of analysis of product distribution channels, taking into account the specifics of the business.

Further, it is supposed to generalize the obtained analysis data in a control chart, which is drawn up in the form of a table. The table reflects the correspondence of the product to a specific market segment. The analysis also involves determining which type of pricing and at what stage it is better to use.

According to the control chart, you can determine the appropriate segment for the development of your product, which one you plan to enter, which of them does not arouse interest. At the same time, conclusions can be drawn which areas of the market are insufficiently saturated, what actions should be taken. If you have segments that are suitable for the product, you should consider appropriate promotion methods. If there is not a single segment, then you do not need the domestic market at all.

Sales channels should only be assessed in relation to the market segments the company enters or plans to enter.

Stage 2. Evaluation of product distribution channels. Consider an example of their analysis in the B2B market. The market in this case is segmented on a regional basis - by regions of the country where the product is presented. Distribution channels are divided into dealers selling our products. Various online stores can act instead of dealers, retail outlets and etc.

We first check whether our partners cover all market segments. Before evaluating them, it is necessary to check the availability at all. Each area in our example has a minimum of 1 dealer. The segments are unequal, in one area 1 dealer is enough, in the other there will be few and 5.

This example confirms that segments 1,2,3 are sufficiently captured by different leaders. Then we evaluate segment 4. We have only 1 strong and 2 weak dealers in it. The remaining segments are also fairly covered. But for the 6th segment, we wrote that it is unique, the only channel is enough for now. For the 7th, diversification is needed. These conclusions follow from the analysis of each distribution channel.

H - the product corresponds to the segment; L - the product poorly matches the segment; empty cell - the product does not match the segment.

Stage 3. We carry out a detailed analysis of each distribution channel (dealer), to return later to the table. 2 and draw conclusions. It is necessary to understand how reliable the partner is, or the presence of certain risks, whether the product is presented exclusively, or other products are being sold along with it.

8 parameters to evaluate each dealer:

• technical efficiency.
• Marketing effectiveness.
• Sales efficiency.
• Sales quality.
• Partnership.
• Finance.
• Logistics.
• production, if available.

Each indicator should be given a specific weighting criterion. Since the main thing for us is sales, this item will be characterized by the greatest weight. However, other points are important as well. overall assessment sales of products.

A - dealer (0,1,3, where 9 - best script, B - willingness to invest in personnel, C - efficiency of personnel management, D - reputation in the market, E - availability of training centers, F - company infrastructure, G - organizational culture, H - business organization rating (%), I - sales territory coverage, J - market segment coverage, K - loyalty to our products, L - time and territory management, M - use of sales tools, N - sales team stability, O - readiness of salespeople, P - rating of sales effectiveness (%), Q - research target markets, R - customer database maintenance, S - own marketing activity, T - participation in our marketing campaigns, U - marketing effectiveness rating (%), V - technical equipment and demonstration equipment, W - product application knowledge, X - product knowledge, Y - rating technical efficiency(%), Z - warehouse size and storage conditions, AA - inventory discipline, AB - warehouse equipment investment, AC - logistics rating (%), AD - financial health of the enterprise, AE - payment discipline, AF - finance rating (% ), AG - communication (transparency), AH - quality of communication with us, AI - commitment to our company goals, AJ - partnership rating (%), AK - equipment performance, AL - recycling efficiency, AM - innovative recycling solutions, AN - investment in equipment, AO - production rating (%), AP - overall rating (%).

Stage 4. We visualize the analysis of product distribution channels. For a more visual assessment of product sales, it is necessary to present the analysis data in the form of diagrams. The most suitable option in this case is multi-axis charts that resemble a web. With their help, the weaknesses of a particular channel are determined, with a comparison of the channels with each other. The rating, which is calculated above, becomes the basis for drawing up charts.

When analyzing distribution channels, appropriate conclusions are drawn, with the obligatory development of a plan of suitable actions. And the main thing for evaluating the effectiveness of the channel is to fully control the implementation of this plan, with an analysis of the result. Since for many companies the main problem is not the problem with analysis, but the lack of implementation of plans in life.

This situation is due to the lack of will to bring things to the finish line. Of course, it is impossible to solve all the identified problems at once. In many cases, it is enough to choose the main thing and act according to the Pareto principle: focus on 20% of programs that are 80% important for the company, and achieve their 100% execution.

Network distribution channel - customers representing a set of retailers (from 3 or more) registered as one entity or how individual entrepreneur. Depending on the scale of the network, there may be: those selling products to the end consumer within more than three subjects of the Federation, while one of them contains no more than 50% of the cash registers. They have centralized management: decisions made in the head office (head office) are binding on all branches of the network.

How to work with distributors

Seminars for distribution managers. The purpose of seminars in working with wholesalers is not to tell that we are better than competitors, but to give the seller the most complete information about our products, to provide an opportunity to try out paints (during seminars, sellers do trial staining). After all, any person will talk with interest about what he knows well. Let's say there are four white paints in a store. The seller knows the advantages of one, as he painted with it at the seminar. As for others, he remembers only the standard information indicated on the bank. Obviously, if the buyer asks for advice on choosing white paint, the seller will talk about all four, but about one - much more fully, taking into account his own impressions.

The regularity of seminars depends on how often the distributor's staff changes (on average, one person needs to be trained every two years). There are companies where people work for 15 years; during this time they attended an average of five of our seminars and already know the product so well that they themselves can teach (we provide such training in our training centers). And there are retail outlets where employees change quite often, so training must be carried out systematically - as staff is updated. Some companies (especially large network formats - such as " Leroy Merlin”, “Obi”) cannot send employees to Training Center due to a large flow of buyers and a shortage of staff during the seasonal months. For them, we regularly hold field seminars (in the building of the store itself) - several days in a row for several hours, so that employees have time to work and gain knowledge.

The interest of the management of the distributor company in sales of your products. Store owners and distributor managers are interested in profit. If you can provide them with a high profit, then they will be interested in selling your product. How to achieve this? It is necessary that your product be sold at an acceptable price for the buyer, distributor and you as a manufacturer. There is no need to go to extremes: work with only one distributor, thereby limiting sales, or attract distributors in huge numbers, forcing them to compete with each other. Price competition is the most destructive, because no one wins: neither the manufacturer, who compensates for the price reduction by deteriorating product quality, nor the buyer, who purchases defective goods, nor a distributor trading almost at a loss.

I will especially note how to work with distributors. You can't control prices, you can only recommend them. We recommend. But we recommend it to everyone. We do it in such a way that the partners themselves want to comply with the recommended prices and that buyers can and want to buy our products for this price. We explain how all links in the sales chain and the end customer benefit from compliance with these prices, that is, we talk about their creative role. We try not to create prerequisites for excessive price competition - we choose partners with good business reputation, together with them we define interesting market segments and help them develop through high-quality service. We strive to organize the work of partners so that they operate in different segments - someone in the market of professional builders, someone in the retail market. All this helps to avoid direct price competition and leads to the preservation of stable profit partners. In addition, we are constantly looking for ways to increase the sales of our partners by expanding sales markets, increasing the range.

Confidence in the quality of your products. This is the most important thing in the question of how to work with distributors and get them interested in your product. Suppose the seller listened to customer complaints three or four times about the paint bought on his advice (for example, it quickly curled up or did not cover the surface in two layers, as the manufacturer promised). After such cases, it is very difficult to interest the seller in the sale of this product, no matter what promotions and gifts the manufacturer showers it with. The seller will still treat these products with suspicion, which will affect sales.

The production and consumption of goods, which are components of a continuously repeating process of reproduction, are separated from each other both in time and in space. The produced goods must be delivered to the specified place, at the specified time and in the required quantity. In practice, this is ensured by the functioning of sales (distribution) channels. The functions of distribution of goods can be performed by the manufacturer himself. However, for a number of reasons, he does not always do this, but resorts to the services of various kinds of intermediaries, which can be both legal entities and individuals. At the same time, in the process of bringing to the consumer, the owner of the goods can repeatedly change.

Sales channel - a set of organizations or individuals that assume or help transfer to someone else the ownership of a particular product on its way from producer to consumer.

Distribution channels perform a number of functions related, on the one hand, to ensuring the effective sale of goods, and on the other, to the most complete and timely satisfaction of consumer demand.

With this in mind, the main functions of distribution channels are.

Marketing research and collection of marketing information,

Realization of goods;

Formation of demand and sales promotion;

Establishing contacts and maintaining relationships with existing and potential customers;

Physical movement of goods associated with the organization of goods movement (transportation, warehousing, storage, acceptance and processing of orders, accounting operations, shipment, etc.);

Adaptation of goods to the requirements of consumers of a particular market (packaging and packaging of goods, refinement, selection of goods according to the assortment and completeness);

Financing of marketing operations;

Acceptance of risk (responsibility - financial, organizational and, to a certain extent, moral - for the functioning of the channel itself).

The most important characteristics of distribution channels are their length and width .

Sales channel length is determined by the number of its levels (intermediate links between the producer and the consumer).

At the same time, any intermediary that performs one or another function of “approaching” the product and ownership of it from the manufacturer to the final consumer is considered as the level of the distribution channel. In accordance with this, several variants of distribution channels with different lengths are distinguished.

Zero level channel (direct sale) takes place in cases where the manufacturer of goods himself enters into direct relations with buyers, without resorting to the services of intermediaries.

Single layer channel involves the presence of one intermediary, which is most often a retailer who sells goods to a direct consumer.

Bilayer channel characterized by the presence of two independent intermediaries: a wholesaler and a retailer.

Three-level channel allows for the presence of three intermediaries between the producer and the consumer, most often two wholesalers and one retailer

Distribution channels with a large number of levels are used much less often, since they do not allow the manufacturer to effectively manage them and control their marketing mix.

Another characteristic of distribution channels, as noted earlier, is their width . It is determined by the number of intermediaries used at each of its levels. In accordance with this, one should distinguish between wide and narrow distribution channels.

Making decisions on the choice of a particular distribution channel (or a combination of them) is a process that is difficult to structure and formalize. The task is to choose among all possible channels those that allow the manufacturer to provide the most effective marketing activity.

Theoretically, the optimal distribution channel is one that provides:

Performing all functions to promote goods from the manufacturer to the consumer;

Achieving competitive advantage;

Lower relative share of spending compared to other channels.

Sales channel is the path along which goods move from producers to consumers. It includes all individuals and legal entities associated with the promotion of goods and their exchange.

Relations between the participants in the distribution channels can be based on both a verbal agreement between manufacturers and the seller, and on a detailed written contract between them.

Distribution channel functions

research (collection of information necessary for the successful implementation of the product, primarily about consumers);

stimulating (creation and dissemination of information about the product that activates purchases);

contact (establishing and maintaining relationships with real and potential buyers);

negotiation room (negotiating between manufacturers and sellers to agree on prices and other terms of sale);

organizational (organization of commodity circulation, i.e. transportation, warehousing and storage of products);

financial (search and use of funds to cover the costs of the operation of the channel);

risky (taking responsibility for the functioning of the channel).

Types of distribution channels

There are direct and indirect distribution channels.

Direct channels are associated with the movement of goods and services from producers to consumers without the use of independent intermediaries (zero-level channels).

MANUFACTURER CONSUMER

Indirect channels are associated with the movement of goods and services from the producer to an independent participant in the distribution of goods, and then to the consumer.

First level channel:

MANUFACTURER RETAILER CONSUMER

Second level channel:

MANUFACTURER WHOLESALE RETAIL CONSUMER

MERCHANT MERCHANT

Third level channel:

PRODUCTION WHOLESALE MELKOOP- RETAIL- CONSUMER

DEALER MERCHANT COMMERCIAL

MERCHANT MERCHANT

Features of distribution channels for industrial products

retail trade is almost not used;

more narrow and direct distribution channels are used;

the number of transactions in the channel is less, and the volume of orders (in value terms) is greater;

more qualified participants in distribution channels;

purchase and sale in its pure form is often replaced by a lease.

Factors affecting the choice of distribution channels

Consumers.

Depends on their desires:

the nature of the sale (on a tray, in a store, etc.);

nature of payment (cash, checks, etc.);

preference for certain brands and packaging.

Products.

Perishable goods require short channels,

clothes and shoes - wide,

industrial goods - short, related to work to order, etc.

Choosing the optimal distribution channel

Public trade network of the organization, if:

Resellers, if:

The amount of goods sold is large enough to justify the cost of organizing a distribution network. The number of consumers is small, and they are located in a relatively small area. This product requires highly specialized Licated service. The volume of each delivered batch of goods is sufficient to fill the wagon container. There is a sufficient network of own storage facilities in those sales markets where the company trades. A highly specialized product is produced according to its intended purpose or according to the technical requirements of the buyer. The product is sold in a vertical market, i.e., in several industries, but by few consumers in each of them. The price of a product is subject to frequent fluctuations, and the manufacturer is required to make changes in pricing policy immediately and without the consent of the intermediary. The selling price far exceeds the production costs. The manufactured product requires changes in its design.

A horizontal market in which there are many consumers in every sector of the economy. This requires the creation of a powerful sales network, costs, significant funds, which only large manufacturers can afford. The sales market is geographically scattered, so direct contacts with consumers are unprofitable. When delivering large quantities of goods to a small number of wholesalers, you can save on transportation costs. The need for frequent urgent deliveries of small consignments of goods, for which it is better to use the warehouses of a reputable wholesaler. The insignificant difference between the selling price of the product and the cost of its production is small, which means that the maintenance of its own distribution network is unprofitable.