Communication strategies in the distribution channel
Posted: Sun Dec 22, 2024 10:42 am
The well-coordinated joint work of intermediaries is the main factor in the effective implementation of the company's marketing strategy . There are two main long-term communication policies that can be used to achieve this (by the way, they are sometimes combined).
Pushing in
The essence of this strategy of vendor influence on the distribution channel is to promote its product to intermediaries. The manufacturer must convince them not only to buy its japan phone number products, but also to create the necessary stock, display these products in good places in the sales areas and in every possible way stimulate visitors to buy. To do this, intermediaries are offered the most favorable conditions and the product is advertised in every possible way.
Ideally, build harmonious relationships with all dealers. In the push strategy, the main players are the sales representatives of the manufacturer.
Intermediaries are motivated by the growth of sales volumes and maintaining stocks at the proper level, the activation of sales staff and local promotional activities (advertising campaigns in stores, expansion of the area of sales outlets, independent promotion of goods), and an improvement in the quality of service.
Communication strategies in the distribution channel
This strategy comes to the rescue when a manufacturer needs to enter the market by establishing cooperation with distributors (who will provide him with access to a wide consumer). However, the better the intermediaries bargain, the more they lead the market, and manufacturers have to agree to their terms, since the choice is small (especially in niches where distribution is concentrated).
The push communication strategy puts dealers in the center of attention and gives them all the levers of influence, while the vendor actually becomes dependent on them and ceases to control sales in the distribution channel.
There is an alternative way: to use only your own chains. But in this case, you will have to bear all the costs, and the implementation of sales functions is quite labor-intensive.
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"Cross-marketing: 5 examples and 8 mistakes"
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Retraction
In this strategy, the focus is on the end customer, and intermediaries play a secondary role. The end consumer is the main goal. The company strives to make the image of the brand and the product as attractive as possible, real users become brand ambassadors and demand that intermediaries start selling its products.
That is, dealers are forced to cooperate through buyers, who are used as a pump to pump up demand. When customer demand reaches a certain level, resellers and retailers are drawn into the distribution channel.
Typically, companies use both strategies or combine them into a system.
Distribution Channel Management
Responsibilities for managing sales channels and stimulating sales usually fall on the shoulders of commercial directors and specialized deputy managers. To successfully perform this activity, you need to have all the information about sales in the company.
Managing distribution channels (whether two-level, single-level or more complex) consists of several functions.
Pushing in
The essence of this strategy of vendor influence on the distribution channel is to promote its product to intermediaries. The manufacturer must convince them not only to buy its japan phone number products, but also to create the necessary stock, display these products in good places in the sales areas and in every possible way stimulate visitors to buy. To do this, intermediaries are offered the most favorable conditions and the product is advertised in every possible way.
Ideally, build harmonious relationships with all dealers. In the push strategy, the main players are the sales representatives of the manufacturer.
Intermediaries are motivated by the growth of sales volumes and maintaining stocks at the proper level, the activation of sales staff and local promotional activities (advertising campaigns in stores, expansion of the area of sales outlets, independent promotion of goods), and an improvement in the quality of service.
Communication strategies in the distribution channel
This strategy comes to the rescue when a manufacturer needs to enter the market by establishing cooperation with distributors (who will provide him with access to a wide consumer). However, the better the intermediaries bargain, the more they lead the market, and manufacturers have to agree to their terms, since the choice is small (especially in niches where distribution is concentrated).
The push communication strategy puts dealers in the center of attention and gives them all the levers of influence, while the vendor actually becomes dependent on them and ceases to control sales in the distribution channel.
There is an alternative way: to use only your own chains. But in this case, you will have to bear all the costs, and the implementation of sales functions is quite labor-intensive.
Read also!
"Cross-marketing: 5 examples and 8 mistakes"
Read more
Retraction
In this strategy, the focus is on the end customer, and intermediaries play a secondary role. The end consumer is the main goal. The company strives to make the image of the brand and the product as attractive as possible, real users become brand ambassadors and demand that intermediaries start selling its products.
That is, dealers are forced to cooperate through buyers, who are used as a pump to pump up demand. When customer demand reaches a certain level, resellers and retailers are drawn into the distribution channel.
Typically, companies use both strategies or combine them into a system.
Distribution Channel Management
Responsibilities for managing sales channels and stimulating sales usually fall on the shoulders of commercial directors and specialized deputy managers. To successfully perform this activity, you need to have all the information about sales in the company.
Managing distribution channels (whether two-level, single-level or more complex) consists of several functions.