Five criminal evidences of marketing channel manag

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The "five criminal evidences" of the marketing channel management of LED lighting enterprises

a LED lighting product, from the delivery of finished products to the hands of customers, finally passes the goods to users through ring after ring marketing channels, and then completes the whole circulation. Therefore, the management of product marketing channels has naturally become the most concerned topic of many LED lighting enterprises. A healthy, unobstructed and efficient marketing channel will have a decisive impact on the market of products (4) belt and tension field, as well as sales performance. It can be seen from the saying "whoever gets the channel gets the world" spread in the industry. Taking company a as an example, this paper talks about the "five criminal evidences" of LED lighting enterprise marketing channel management, and gives the corresponding solutions, hoping to bring enlightenment to the industry

attachment: Company A is a leading manufacturer of LED lighting products in China. In recent years, with the intensification of market competition, it has been on the verge of failure for several times. The company hopes to seek a breakthrough for the development of the enterprise by optimizing marketing channels

criminal evidence of marketing channel management of company a

criminal evidence 1: marketing channel conflict

according to the internal statistical data of company a, from January to November 2016, due to the conflict between various sales channels, such as cross regional sales of products, vicious price competition, etc., 20million sales volume loss and 3million yuan profit loss were caused

in the operation of the whole marketing channel system, conflicts between channels often occur. Due to the different nature of enterprises, there is an imbalance in the distribution of sales resources among members. These resource biases are bound to form a marketing channel member that is more powerful than another member in a region. These advantages can be manifested in the price advantage of selling products, the advantage of promotional policies, etc. At the same time, in the assessment of channel members, company a pays more attention to the realization of sales goals, which is inevitable. Some marketing channel members use their comparative advantages to occupy the sales performance that should belong to other marketing channel members to achieve their goal of completing sales tasks

criminal evidence 2: lack of incentive mechanism and insufficient sales drive

the purchase price of secondary wholesalers in the marketing channel of company a is 87% - 88% of the wholesale price of products. That means the gross profit of its products is only about 13%, which also needs to bear product logistics costs, sales costs, promotional activities, company operating costs, personnel costs, taxes and capital costs. The profit really earned by relying on the price difference between the purchase and sale of products is very limited, and there is even a risk of loss. The low sales profit of marketing channel members will inevitably lead to the decline of sales enthusiasm of marketing channel members, which will not only be reflected in sales performance, but also affect the performance of product retail terminals, the implementation of promotional activities, and the implementation of company policies. For the same new products to be sold on the market, the executive power of the company's own sales team is significantly higher than the efficiency of distribution, and most of the factors are the promotion of dealers. In the big goal of establishing enterprise marketing channels, company a takes more consideration of the guarantee of its own profits, and does not take more consideration of the interests of other members of the channel, which is bound to cause the decline of the efficiency of the whole marketing channel

criminal evidence 3: poor information communication and untimely information feedback

in the marketing channel system of company a, another important problem is the poor information communication among channel members and the untimely market information feedback. Because the marketing structure of company a is not flat enough, the main dealers, primary and secondary dealers, including the marketing members inside and outside the enterprise, too many marketing links and members will be delayed in the transmission and feedback of market information

for example, company a launched a new product in the fourth quarter of 2016. At that time, the plan of media launch was three months ahead of schedule with all marketing channels. 6) asymmetric dispersion of sample support points: the source of error has a serious impact on the four point bending loading situation However, due to the influence of market factors, the time of its media launch was delayed by half a month. The self-supporting channel members received the relevant adjustment information on time, while the wholesaler channel members failed to get the updated information of the changes in media launch. The unsmooth information communication has caused the asymmetry of information acquisition of channel members, resulting in the disconnection between terminal activities and media delivery

criminal evidence 4: lack of channel supervision mechanism

at present, company a has insufficient supervision over the behavior of channel members in the whole marketing channel system. There will be corresponding signs in the early stage of the speculation of these channel members. Monitoring the elements can prevent conflicts in time

for example, the cross regional sales of channel members can form an effective early warning mechanism through the comparison of their sales data over the years. In the early stage of cross regional sales, channel members will prepare products for this, so that the purchase quantity of one or several products in a period of time is significantly higher than that in the same period last year, and some even reach several times. If there is a perfect comparison and early warning system for the purchase quantity of each member, then problems can be found in the early stage of channel members' behavior and marketing channel conflicts can be avoided

criminal evidence 5: Network Sales positioning is unclear and the structure is unreasonable

as a veteran LED lighting enterprise, company a did not pay much attention in the early stage of e-commerce development, but relied more on traditional sales channels, sold in retail stores, the audience of advantageous products is small, and the promotion of brand establishment is limited

with the popularity of Internet, the advantage of e-commerce sales platform in forming an industrial chain is becoming more and more obvious. Rich product selection, convenient payment function, door-to-door delivery and other characteristics have attracted a large number of post-80s and post-90s consumers. In a few short years, it has achieved rapid development, and hundreds of unknown products have gone to all parts of the country with the help of e-commerce platforms, It instantly became a well-known product and achieved rich market returns

when company a began to realize the development trend of e-commerce, it also saw the actual situation of its late start and lack of professional operation in this marketing channel. In order to narrow the gap in a short time, company a adopted a large amount of sales resources to promote its development. To some extent, it does have a certain effect. The sales performance of a company's network sales company is greatly improved every year. However, it must be pointed out that most of these achievements are diverted from offline traditional channels

atonement strategy (optimization suggestions)

1 Balance the resource allocation of the members of each marketing channel

under the premise of common goals, in principle, each marketing channel member is allocated the due sales resources according to their role in the channel. The sales resources of marketing channels at the same channel level are basically equal. Of course, in actual operation, each channel has quality differences, and it is allowed to focus on certain resources for high-quality marketing channels, but the impact on other marketing members must also be considered

in a2 In the marketing system of companies with poor jaw quality, we should try our best to reduce the inequality of trade terms between self operated channels and wholesaler channels in the distribution of sales resources, and fundamentally safeguard the equal sales rights of all marketing channel members, which can not only ensure the reasonable and comprehensive development of marketing channels, but also reduce the occurrence of marketing channel conflicts

2. Guarantee of reasonable profits of marketing channel members

the essence of marketing channels is to rely on interests to maintain marketing channel members and form a network of interests. Once any member in the network cannot obtain relevant benefits, the network established by the marketing channel will become fragile and even may be destroyed. Company a has a certain room for improvement in the profit margin of intermediary product sales, which can be adjusted by directly reducing the supply price of intermediary products or increasing the annual rebate of sales, so as to expand the reasonable interests of intermediary sales and stimulate its subjective enthusiasm for product sales driven by relevant interests

3. Construction of information platform

the smooth communication of information is conducive to the standardization and effectiveness of behavior among marketing channel members, and avoids unnecessary consumption and conflict within channel members caused by the lack of smooth information transmission and information deviation. Company a employs professional companies to set up relevant information system platforms, which are responsible for the accurate transmission of company information among members and the objective feedback of market conditions, and can promote the information exchange among members of marketing channels. Comprehensively collecting information from all aspects has important guiding significance for the development and adjustment of marketing channels, and provides a basis for enterprise decision-making

4. Strengthening the supervision and reward and punishment system

a company should make requirements for channel members on product sales profits, prevent the return of profits by maliciously expanding the sales scale, and pay special attention to and supervise the products sold below the company's market guidance price or zero profit. Control the illegal use of sales resources at the source, so that the illegal behavior of channel members will lose the source of their resources, so as to control their market behavior. It can be summed up as follows: supervise the sales expenses to be earmarked for special purposes; Maintain the product sales guidance price and strictly control the sales of ultra-low price products. We will formulate a strict punishment system for customers who violate the company's regulations and take risks. Once their violations are found, they will pay a greater price than they get, so as to strengthen the norms of channel members' behavior and the benign development of the market

5. Actively strengthen the service-oriented management of wholesalers

wholesalers have played an important role in marketing channels and become an indispensable part of them. Now, in order to optimize the efficiency of marketing channels, more and more LED lighting enterprises mobilize the enthusiasm of wholesalers to maximize the expansion of sales scale, constantly strengthen the management of wholesalers and provide relevant services, so that wholesalers can put more energy into sales

6. Improve the price system

it is suggested that company a reduce the price difference between horizontal channels in different sales regions and mobilize the sales enthusiasm of members at all levels of the channel through the acquisition of reasonable profits. And at different stages of development, make corresponding dynamic adjustments to the price system to meet the needs of development. Control the margin of various rebates, and avoid excessive sales rebates, which will lead to marketing channel conflicts caused by channel members not hesitate to destroy the price system in pursuit of profits and occupy other sales markets

7. Optimization of e-commerce channels

the traditional marketing mode has been operated in company a for more than ten years, and has a considerable scale. The enterprise's products have entered the stage of in-depth distribution in the early stage, and effectively covered the first and second tier cities in China. In view of this situation, the greater role of network sales is reflected in the effective supplement to the market and the promotion of products with traditional channels, which is not easy to invest too much resources in the field of product sales, Especially in the price of products. In this regard, it is suggested that company a should make adjustments in several aspects:

1) formulate a price system for online sales and traditional sales, so as to ensure that the online and offline channels of products are basically consistent. The biggest price difference remains at 1-2%

2) adjust the category structure of network sales and traditional sales channels

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