Why is it beneficial to create an effective distribution network. Organization of the sales network. Distribution channel selection

The issues of organizing the marketing of the product, in my opinion, are quite fully covered in the work of J.-J. Lambin. Let us present the main provisions of this work.

For most markets, the physical and/or psychological distance between manufacturers and end users is such that effective matching of supply and demand requires intermediaries. The need for a distribution network is due to the fact that the manufacturer is unable to assume all the responsibilities and functions arising from the requirements of free exchange in accordance with the expectations of possible consumers. Recourse to intermediaries means that companies lose control over certain elements of the commercialization process.

Therefore, for a company, the choice of a distribution network (distribution channels) is a strategic decision that must be compatible not only with expectations in target segment, but also with its own goals. The sequence of solving problems by distribution channels is shown in fig. 3.1.

A distribution network can be defined as a structure formed by partners participating in the process of competitive exchange in order to provide products and services at the disposal of personal consumers or industrial users. These partners are manufacturers, resellers and end users - buyers. Any sales channel performs a certain set of functions necessary for the implementation of the exchange.

Sales Functions:

study of the results of market segmentation and advertising planning;

conclusion of contracts with consumers or intermediaries;

accounting and control of the implementation of contracts;

development of a plan for shipping products to customers;

definition of sales channels;

organizing the reception, storage, packaging, sorting and shipment of products to customers;

information, resource and technical support for the sale of products;

sales promotion;

establishing feedback with consumers and regulation.

Rice. 3.1. Sequence of decisions by distribution channels

The implementation of the considered functions leads to the emergence of commercial distribution flows between the participants in the exchange process, directed in mutually opposite directions. In total, five types of flows can be distinguished in the distribution channel:

cluster of ownership rights: transfer of ownership rights to products from one owner to another;

physical bundle: sequential physical movement of products from the manufacturer through intermediaries to the final consumer;

bunch of orders: orders coming from buyers and intermediaries and sent to manufacturers;

money clot: various payments, bills, commissions that move from the end user to the manufacturer and intermediaries;

clot of information: this clot spreads in two directions - information about the market moves towards the manufacturer, information about the goods offered, at the initiative of the manufacturer and intermediaries, is sent towards the market.

Thus, the presence of a distribution channel implies the distribution of functions and flows between participants in the exchange. The key question in networking is not whether these functions and flows must exist, but rather which of the channel participants will do them. One can observe a huge abundance in the distribution of functions not only for different markets, but also within the same market.

High level Cost pressure is constantly pushing companies to look for better ways to sell. At the same time, it is clear that sales functions can be transferred, but they cannot be excluded. From the point of view of the company, the transfer of these functions to intermediaries is justified to the extent that they, due to their own specialization, are able to do them more efficiently and at lower costs than the manufacturer himself. The privileged position of marketers (distributors) in relation to manufacturers is due to five factors:

reduction in the number of contacts;

economies of scale;

reduction of functional discrepancy;

assortment improvement;

service improvement.

The reduction in the number of contacts is ensured by the method of organizing trade through a wholesaler. Let's give an example: a product of this group is produced by 3 manufacturers and consumed by 5 consumers. Two more common schemes for marketing products are possible:

without intermediaries, directly - each manufacturer is connected with each consumer; the number of connections in such a scheme is equal to the product of the number of manufacturers and the number of consumers, i.e. 3 X 5 = 15;

through an intermediary - each manufacturer and each consumer is connected only with an intermediary; the number of connections in such a scheme is equal to the sum of the number of manufacturers and the number of consumers, i.e. 3 + 5 = 8. A similar marketing scheme, also called centralized, is more effective, as it reduces the number of actions that ensure the coordination of supply and demand.

Economies of scale in sales operations come from grouping offers from many manufacturers. An intermediary is capable of doing certain functions to a greater extent than a single manufacturer. For example, the costs sales representative wholesale company can be distributed among several manufacturers. As a result, the cost of performing the sales function is reduced compared to the option when each manufacturer is required to have its own sales staff.

Reducing the functional discrepancy between deliveries and customers is also ensured by the organization of sales through intermediaries. By purchasing large quantities of products, storing them and breaking them down into small batches, wholesalers and retailers enable manufacturers and consumers to deal with supply scales that are more convenient for them. In the absence of intermediaries, the manufacturer was required to produce products in small batches to accommodate the size of orders coming from individual customers. In addition, he would be obliged to create huge reserves. If one organization takes on two different kind activities, for example, the creation and sale, for which the rational scales are different, it is obliged to perform at least one of these types on a scale that is greater or less than the rational one. The consequence of this will be an increase in costs compared to the case when both acts are performed separately at their own rational level.

Improving the range of products is one of the requirements of consumers. The assortment offered by the manufacturer is largely determined by the requirements of uniformity in production, the raw materials used, technological knowledge, etc., while the assortment that interests the buyer is dictated by the situation of consumption and interchangeability of products. Traditionally, consumers need a variety of products in small quantities, while manufacturers create a limited range of products in huge sizes. Therefore, the role of intermediaries is to provide product contrast so that buyers can purchase multiple products in one transaction, saving their time and effort. Similar savings are created for the manufacturer. For example, a company that specializes in tools of a certain type will not be able to open own shops if you don't start giving in them a wide range of products traditionally available in stores of this type. Of course, it is easier for a merchant to secure this assortment by contacting several manufacturers, especially if they are competitors.

Better customer service is provided when the intermediary does it, because. He is closer to the buyer, knows better the local conditions and the conditions for the implementation of the product. It is easier for the intermediary to adapt to local conditions, provide the best after-sales service and other services. But this superiority of intermediaries is not unshakable. In a competitive environment, intermediaries constantly have to improve the quality of services and reduce costs.

Distribution channel selection

The choice of the structure of the distribution channel comes down to solving the issue of the distribution of responsibilities between the participants in the exchange process. From the company's point of view, first of all it is necessary to decide whether to entrust someone or part of the sales functions, and if so, to what extent and under what conditions.

There are four classes of intermediaries that can be included in a distribution channel:

wholesalers;

retailers;

agents and brokers;

commercial service companies.

Detailed description intermediaries was considered by me in the second chapter. The vertical structure of the channel is characterized by the number of levels separating the producer from the end user (without intermediaries, with one or more intermediaries). From a manufacturer's point of view, the longer the channel, the more difficult it is to control.

The company traditionally resorts to the use of multiple distribution channels, or in order to make a competitive situation, rivalry between merchants, or in order to enter into several parts with different shopping habits. For example, Philips-branded equipment is sold in discount markets, hypermarkets, large stores, novelty stores, all the way to retail stores owned by Philips itself. The Korean company Samsung Electronics, while selling its products on the Russian market through distributors and a soon-expanding dealer network, is at the same time actively creating its own branded stores, warehouses and service centers for its own products.

Table 3.1. Distribution channel selection criteria

*** more preferred channel.

In the distribution network, you can follow different options for competition:

between intermediaries of the same level of the distribution network;

interspecific horizontal competition, for example, competition between self-service and full service;

vertical competition i.e. Competition between intermediaries of a higher and lower level, for example, retailers (in the structure of the distribution channel they occupy a position below wholesalers) can act as a wholesaler, and wholesalers - retailers;

competition between distribution channels in general, for example, the conventional distribution network competes with the sale of products through the mail.

The evolution of the marketing system, which has taken place in recent decades, has sharply intensified competition between intermediaries of all types. One of the manifestations of this competition was the development of vertical marketing systems, which have the following varieties:

built-in vertical marketing systems (VMS) that combine the manufacturer of the product and the marketer in one person;

contractual IUDs, which in turn have the following varieties: voluntary purposes under the auspices of a wholesaler; retailers' cooperatives; franchise systems;

controlled by the Navy, characterized by a non-contractual form of cooperation between the manufacturer and the distribution network.

The choice of a specific distribution channel is determined primarily by the restrictions imposed by the target market, buyer behavior factors, product and company features, and other factors (Table 3.1.).

Producing a product in a buyer's market is half the battle. The manufacturer must also take care that the goods reach the consumer as quickly as possible, since the latter, in the absence of a shortage, tends to minimize his costs of finding the right product.

The marketing system has developed specific concepts for designating its activities, let's dwell on some of them

Sales network- this is a structure formed by partners participating in the process of competitive exchange in order to provide goods and services at the disposal of consumers.

Sales channel- this is an organization (individuals) involved in the movement and exchange of goods, their activities are characterized by their own functions, conditions and restrictions.

Any sales channel performs the following functions:

Transportation.

Dividing a large batch into smaller ones.

Storage.

Sorting (creating sets of specializing and complementary).

Establishing contacts with numerous and remote consumer groups.

Informing (knowledge of market consumers and conditions of competitive exchange).

Sales- this is transportation, warehousing, refinement, promotion, pre-sale preparation and sale of goods.

Sale- this is a personal communication between the seller and the buyer, aimed at making a profit from the sale and requiring knowledge, skills and a certain level of sales competence.

The main participants in the distribution channel are:

wholesaler (wholesaler) is a person ( individual) or an enterprise that purchases a significant amount of goods from manufacturers and organizes either their movement to retail trade or direct sale to the consumer.

Retailer is a person (enterprise) who directly sells a relatively large amount of goods to the final consumer

Broker - this is a person who sells goods without acquiring ownership, but only bringing the seller and the buyer together and receiving a commission from the transaction.

commission agent - this is a person who has a warehouse with goods that he sells on his own behalf, but at the expense of the company that produces these goods.

wholesale agent - a person who works under a contract with the manufacturer and conducts operations at his expense, who is not the owner of the goods.

Consignee - a person who has his own warehouse and goods that are transferred to him by the manufacturer for safekeeping under consignment terms.

Trading agent - a person who sells goods to customers on his own.

Dealer - is independent small entrepreneur, which usually specializes in the sale of durable goods (cars, tractors, agricultural machinery) that require significant service.

Sales representatives work through certain sales organizations:

commodity exchange - is a permanent and organized wholesale market, which trades in large masses of homogeneous goods that can be standardized.

Trading house - a large wholesale and retail company, also operating in the areas of production and finance.

In contrast to the commodity exchange, trading houses are more adapted to conducting transactions with non-standardized consumer goods (clothes, household appliances, electronics).