Advantages of vendor cooperation channels Advantages of vendor cooperation channels: Vendor cooperation channels have more advantages than direct sales channels.
Some people think that with the development of social economy, the importance of direct channels will rise, because some products are more and more technical and the product structure is more and more complex, and these service intermediaries are difficult to provide; In addition, production enterprises pay more and more attention to the market, and do not believe that middlemen can work harder than themselves in information; Some new products or products that are not well-known, dealers are unwilling to operate; Especially with the advent of the information age, the importance of direct channels will be further enhanced. At present, there are various forms of direct sales channels in China, but the development of these sales channels requires manufacturers to pay more fees and costs, and manufacturers bear greater business risks.
The cost and sales expenses of setting up sales organizations or stores are high, which is not conducive to enhancing competitiveness. Some well-known manufacturing enterprises have spared no expense to set up a huge sales team, marketing network and after-sales service team. In particular, many well-known manufacturers, branches, offices, after-sales service centers and even specialty stores are blooming everywhere, which is tantamount to redundant construction and is bound to cause great waste. This is also the case. When the cost control space in the production field is getting narrower and narrower, the problem of high circulation cost is highlighted. The sales and management expenses of a considerable number of enterprises are increasing year by year. Moreover, the efficiency of product promotion through direct selling channels is not as good as that of manufacturer cooperation in some cases. Especially those products with large sales volume and wide market, it is difficult to improve their sales rate through direct sales. The indirect sales channel of dealer sales has incomparable advantages over the direct sales channel.
The cooperation between manufacturers is an indirect channel with * * * risks, or centralized procurement, or pre-purchase or the penetration of commercial capital into industrial capital, all of which are reflected in * * * sharing market operation risks and making full use of manufacturers' favorable resources. Compared with factory direct sales, it has the advantages of less risk, * * * utilization of business resources, and is conducive to achieving a win-win situation.
Advantages of vendor cooperation channel: vendor cooperation is a relatively advanced short channel form.
With the in-depth development of market economy, short channels have more and more strong vitality. Because of the pressure of competition, both manufacturers and merchants will think from the perspective of rationalization of sales channels, and retailers' own development will also enhance their purchasing ability, and they can assume the functions of wholesalers and deal directly with manufacturers.
At present, the proportion of large retailers in China's big cities purchasing goods directly from manufacturers has reached more than 90%. This shows that the role of short channels is increasing. Among these short-channel industrial and commercial relations, the new cooperation between manufacturers is the most vital and the most advanced, because the past industrial and commercial relations were only pure commercial relations. In these relationships, the risks may be unequal, and often a company takes risks. For example, the risk of agency sales is generally borne by manufacturers, which affects the lasting development of the relationship between manufacturers to some extent. The new cooperation between manufacturers includes not only general business relations, but also long-term capital cooperation relations, and both parties share risks. Through cooperation, manufacturers are closely linked, facing the market and participating in market competition.
Advantages of vendor cooperation channels: vendor cooperation channels can solve industrial and commercial conflicts more effectively.
The contradiction between industry and commerce mainly includes quantity contradiction, price contradiction and space contradiction. These contradictions will naturally be alleviated through close cooperation between manufacturers.
First of all, the cooperation between manufacturers can reduce the contradiction between industry and commerce in price. Due to the respective interests of merchants and manufacturers, the inconsistency in price positioning between the two sides has affected the long-term relationship between industry and commerce to some extent. If manufacturers can't cooperate well, it's easy to lose both sides. Through large-scale centralized procurement or bidding, or capital infiltration between manufacturers, reducing links and dispersing risks can not only greatly save manufacturers' advertising, warehousing, marketing and other costs, but also reduce manufacturers' production costs and minimize the final market price.
Secondly, it is conducive to solving the contradiction between quantity and time. After establishing close contact between manufacturers, the effective communication of information between them enables manufacturers to arrange production according to the market demand information provided by merchants, and manufacturers completely decide the quantity of goods from a market starting point.
Finally, it is beneficial to solve the quality contradiction. The direct contact between retailers and consumers enables them to better understand the changes in consumer demand, while the changes in manufacturers' products lag behind the changes in demand.
Therefore, retail enterprises are often not very satisfied with the products produced by production enterprises, and the contradiction between variety and quality is the main contradiction in industrial and commercial relations. Some big retailers, such as Gome, directly place orders with manufacturers according to the market demand, so that manufacturers can produce products that meet their own needs, thus eliminating the contradictions between manufacturers.
Advantages of cooperation channels between manufacturers: The dominant position of large retailers has accelerated the process of cooperation between manufacturers.
Retail is the intermediary between production and consumption, and the special market position of retailers is unmatched by manufacturers. The dominant position of large retailers in the channel is determined by the following reasons: shopping malls can truly, objectively and effectively display goods in front of consumers, and directly and organically combine commodity entities with sales targets. This sales method is more convincing than ordinary commodity advertisements.
Shopping mall is an important gravitational field. The best place to deepen contact with customers and create customers is not in the production process, but in the communication process. Shopping malls can guide customers, persuade and change their purchasing motives and behaviors through audio and tangible commodity information. In their own development, retailers can enhance their negotiation ability with manufacturers on the purchase scale and constantly put pressure on suppliers. In addition, retailers can use their reputation to cultivate their own brands and occupy a leading position in the whole channel. Retailers can create their own brands to enhance their own strength and have an advantage over manufacturers. The strength and dominant position of big retailers have created the fact of cooperation between manufacturers and enhanced their control ability in the channel. Whether Suning Group really wants to stimulate manufacturers and distributors to make consumers realize the price advantage, or Gome only does retail, does not act as a middleman, and takes the road of small profits but quick turnover, which can show that retailers are increasingly attractive to manufacturers.
The main forms of channel cooperation are 1 and joint promotion, including cooperative advertisements, samples, joint sales visits, rebates or rebates. Cooperative advertising is a common form of channel cooperation in China IT industry. The usual practice is that the manufacturer provides an advertising plan, which is published in the local media, and the manufacturer gives some subsidies (deducted from the payment for goods or reimbursed by documents). At present, joint sales call is not widely used in domestic it industry, but the facts of other industries prove that it is a very effective way of channel cooperation. In addition to targeting large customers, manufacturers send sales staff to cooperate with the sales staff of dealers or agents to visit wholesale or retailers together, which can effectively improve distribution efficiency and maintain manufacturers' control over channels. Rebate or rebate is also one of the ways of channel cooperation. Compared with temporary price reduction, rebate will not have a negative impact on the inventory value of wholesalers or retailers, and can reduce the management cost of retailers.
2. Joint inventory management support, including joint participation in EDI projects, joint participation in JIT production inventory management plans, manufacturers or wholesalers participating in emergency delivery activities to middlemen, and manufacturers helping wholesalers and retailers to raise inventory funds.
3. Professional products
Providing specialized products can not only enhance channel cohesion, but also reduce the price comparison when consumers buy. Sometimes, manufacturers will design different models or brands for the same product to reduce the price comparison. American Black & Decker Computer once adopted this strategy. The brand it provides for the electrical channel is Legend, and the brand it provides for the office equipment supermarket channel is Force. At present, many domestic IT enterprises are keen on their own brand retail stores. In this case, providing exclusive products to stores will help improve the competitiveness of monopolists.
4. Enjoy information * * *
Information * * * includes manufacturers, wholesalers and retailers who have joined the EDI project * *, and channel members * * * enjoy market research, competition situation, channel dynamics and other information.
Step 5 cultivate
Training includes wholesalers and retailers participating in manufacturers' sales training and product training activities. Judging from the current situation of IT industry in China, in addition to the above two kinds of training, it will be better if manufacturers can conduct management and marketing training for their various distributors. Because compared with manufacturers, the management level of China's IT industry circulation enterprises is generally not high.
6, distribution area protection
Manufacturers can determine exclusive sales areas for wholesalers and retailers, which can greatly strengthen channel cooperation.
Partner marketing strategy Enterprises need to consider the following issues when using partner marketing strategy:
1, determine the allocation decision.
The main feature of partner marketing is the symmetrical information flow between buyers and sellers, such as sharing information on sales and inventory levels. Secondly, the relationship between buyers and sellers in partner marketing is quite high. Both manufacturers and middlemen seek channel partners in the transaction, and the obligations that manufacturers need to fulfill are the decisive factors. In the following cases, the trust of middlemen in manufacturers will increase:
Manufacturers authorize middlemen to engage in exclusive franchise.
The manufacturer invests in maintaining the relationship between the two parties (such as training middle-level employees)
Manufacturers do have a responsibility.
However, if the relationship between the two has been blocked by conflicts of interest, this trust will decline. If the two sides have strong two-way communication, or the manufacturer has high credibility, the middleman is more likely to fulfill his obligations. Manufacturers can improve their reputation by providing a series of services to middlemen, including providing information, plans to attract customers, contacting the phone number of cancellation letters, extending the payment period and developing special products. On the contrary, distributors are more willing to fulfill their obligations to manufacturers in the following situations:
Dealers specialize in products (promotion of other competitive brands is prohibited).
Distributor investment marketing network.
Dealers are really responsible and have high credibility.
2, determine the price decision
Partner marketing is characterized by establishing a long-term contractual relationship, rather than negotiating every transaction. The contract is determined through one-time negotiation, not based on transaction. It is necessary for manufacturers to determine different pricing levels in cooperative marketing and trade marketing. It should also be noted that the pricing level in partner marketing should reflect the value of additional services.
3. Determine the promotion decision.
In partner marketing, personal promotion is more important than advertising and other means of mass communication. Different from advertising, personal promotion can build solid social ties, build trust and solve problems. In fact, once the contract comes into effect, the salesperson spends more time on service than on promotion. The personnel promotion procedures of partner marketing and trade marketing are also very different. In partnership marketing, salespeople are consultants and problem solvers; In trade marketing, salespeople are regarded as income earners and lobbyists. Compared with trade marketing, the salesman in partner marketing is responsible for fewer customers, and its role is more to maintain old customers than to develop new customers.
In order to better perform the duties of salespeople, it is necessary to reduce the area in which each salesperson is responsible. For manufacturers, it is also very important to keep employees stable, which is conducive to establishing long-term social ties with customers. Finally, the performance appraisal of sales staff should be based on customer service quality and customer retention rate. This requires manufacturers to redesign the salary system of sales staff. For example, according to a company's policy, salespeople can get as many rewards as developing new customers by renewing their contracts with old customers.
The application of partner marketing has four advantages for manufacturers to establish long-term relations: reliable re-ordering enables manufacturers to keep lower prices and improve production efficiency; Because of stable customers, marketing expenses are reduced, thus improving marketing efficiency; Because the sales volume can be estimated more accurately, the optimal production plan can be made; The long-term relationship of partner marketing enables manufacturers to observe customers' needs and preferences more accurately. The first disadvantage of partner marketing is that customers' employees may disclose * * * enjoyment information to other companies. Although this is nothing in trade marketing, it is extremely inappropriate in partner marketing. Another disadvantage is the high dependence between all parties. For manufacturers, most products may be bought by a few customers, so losing an important customer will greatly reduce the company's short-term sales and profits. Similarly, customers may be too dependent on one manufacturer, and it is difficult to find another supply channel when the major manufacturers are in short supply.
In practical application, we should fully study the advantages and disadvantages of partner marketing and choose partner marketing or trade marketing according to the actual situation. Usually, we can use partner marketing for big customers and trade marketing for small customers. On the other hand, for customers who need more services, partner marketing can be used, while customers who only consider price can use partner marketing, and customers who only consider price can use trade marketing.
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