What are the general channels for finished product sales?

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What are the general channels for finished product sales?

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KKKFri, May 6, 2022 9:46 AM

It can be divided into zero order, first-order, second-order and third-order channels according to whether it includes and how many intermediary levels it includes. According to this, it can also be divided into direct channels and indirect channels, short channels and long channels.

(1) Zero order channel is a direct selling type in which manufacturers sell products directly to consumers. Its characteristic is that there is no middleman involved in changing hands. The main ways of direct selling include door-to-door direct selling, mail selling, Internet direct selling and manufacturer's own organization sales. Direct selling is the main way of industrial products marketing channel. Almost all large-scale equipment, professional tools and industrial products requiring special services adopt direct sales channels. With the improvement of scientific and technological means, the direct sales channels of consumer goods are also developing rapidly.

(2) The first-order channel includes the first-order middleman. In the consumer goods market, this middleman is usually a retailer; In the industrial market, it can be an agent or dealer.

(3) The second-order channel includes two-level middlemen. The typical mode of second-order channel of consumer goods is through wholesale and retail transfer marketing. In the industrial products market, these two levels of middlemen are mostly composed of agents and wholesale dealers.

(4) The third-order channel is a channel type with three-level intermediary structure. Some daily necessities with a wide range of consumption, such as meat food and packaged convenience products, need a large number of retail institutions for marketing, and many small retailers are usually not the service objects of large wholesalers. Therefore, it is necessary to add a level of professional dealers between wholesalers and retailers to serve small retailers.

There are also higher-level marketing channels, but they are extremely rare. Generally speaking, the more channel levels, the more difficult it is to coordinate and control, which will bring many problems to channel management.

According to the hierarchical structure of marketing, it can be divided into direct channels, indirect channels, short channels and long channels.

Direct channel refers to the channel type in which products are directly sold by producers to consumers (users) without the participation of middlemen.

Indirect channel refers to the channel type in which products are sold to consumers (users) through only one or more business links with the participation of one or more intermediaries.

The above zero order channel is the direct channel; 1、 The second and third-order channels are collectively referred to as indirect channels.

For the convenience of analysis and decision-making, some scholars define the first-order channel in the indirect channel as short channel, while the second and third-order channels are called long channel.

Obviously, short channels are more suitable for selling products (services) in small areas, while long channels can adapt to selling products (services) in a larger range and more market segments.

Demon KingSat, May 14, 2022 10:05 AM
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