Because the factors affecting distribution channels are always changing, some unreasonable problems will inevitably appear in some original distribution channels. At this time, the distribution channel needs to have certain adjustment functions to adapt to the new situation and changes in the market and maintain the adaptability and vitality of the channel. In the process of adjustment, we should comprehensively consider the coordination of various factors, so as to keep the channel in a basically stable state within the controllable range. When choosing and managing distribution channels, enterprises should not only pursue the maximization of their own interests and ignore the local interests of other channel members, but should distribute the interests among all members reasonably.
The relationship of cooperation, conflict and competition among channel members requires channel leaders to have certain control ability-guiding channel members to cooperate fully, encouraging beneficial competition among channel members, reducing the possibility of conflict, solving contradictions and ensuring the realization of the overall goal. Terminal point of sale refers to the place where goods leave the circulation field and enter the consumption field. For consumer goods, it is a retail point; For the means of production, it is a transit station. Terminal point of sale is the frontier position for enterprises to realize their own business goals. Whether the products of an enterprise can finally be sold out and achieve ideal economic benefits is directly related to the selection and operation of terminal sales points. Therefore, as the first step of distribution management, it is to choose the terminal sales point that best meets the characteristics of enterprise products or services, and then achieve the sales target through effective management. Otherwise, the whole distribution work from the enterprise to the terminal point of sale will become inefficient or even ineffective labor. Therefore, for an enterprise, the first step to enter the market and organize commodity sales is to choose the terminal point of sale.
(A), the principle of choosing the terminal point of sale
The principle of marketing tells us that before entering the market, we must first segment the market and choose the target market. This is one of the important principles of marketing. Target market, that is, target customers, who are they? This is the first thing that marketers should be clear about. Only by determining who is the target customer can we find out what he needs and what goods he needs, and then when and where to sell the goods he needs.
In commodity distribution activities, we must also adhere to the principle of target market (target customer). Adhering to this principle is to provide suitable products according to the needs of target customers; Sell goods at the right time according to the time required by the target customers; Decide where to sell goods according to where the target customer needs to happen. The choice of terminal sales point is a planning activity to organize commodity distribution according to the principle of target market.
Choosing the terminal point of sale is to break the aimless sales model of "Jiang Taigong fishing, the willing takes the bait" in the past, and send the goods to the places where consumers are most willing to patronize and buy them easily, so that customers can buy them in time and conveniently.
Correct selection of terminal sales points is of great significance for expanding commodity sales. Usually, consumers' demand is obviously time-sensitive, and only when the demand occurs, people have a strong desire to buy. If you can buy related goods nearby and conveniently, you can meet their needs in time.
Because consumer demand is personalized and diversified, the choice of terminal sales points should also consider consumers' shopping psychology. The choice of terminal point of sale mainly depends on:
1. Customer's requirements for the most convenient place to buy;
2. Requirements of places that customers are most willing to patronize and buy;
3. Location requirements for goods to be fully displayed and recognized by more people;
4. Establish the position requirements of product image, etc. These requirements are embodied in the choice of terminal sales points. It is required to choose a direct customer-oriented distribution point according to the characteristics of the target market and competition, the economic strength of the enterprise itself, product characteristics, public relations environment, market foundation and other factors, as well as the external market environment, competitors and market purchasing power level.
(2) Choose according to consumers' income level and purchasing power.
Purchasing power level is one of the important components of "market". If customers have high purchasing power, they will not only buy a large number of certain goods, but also buy high-grade goods, and people are willing to pay high prices for high-quality brand-name goods. If the purchasing power level is low, not only will the product grade not go up, but the sales of low-grade goods will also be restricted. The purchasing power of consumers comes from personal income, so it can also be said that income level is an important basis for guiding enterprises to know commodity buyers and choose terminal sales points.
Consumers with different income levels have different choices and requirements for the place to buy goods. Therefore, when selling products or services, enterprises should first consider the positioning of the consumer groups they face. Therefore, enterprises must consider the level of disposable personal income and disposable personal income in different places when choosing terminal sales points. With the number of competitors unchanged, if the income level in the region is high, it is necessary and possible for enterprises to set up sales points in the region. On the contrary, if the income level is not high and the purchasing power is weak, we should be cautious.
Generally speaking, consumers with higher income and stronger purchasing power buy more, and they are willing to decorate beautiful and reputable large shops, even if the goods there are more expensive than other shops, they don't care. However, those consumers with low income and small purchasing power show different buying behavior characteristics.
Of course, enterprises should also pay attention to the characteristics of the goods they operate when considering the constraints of income level on the choice of terminal sales points. If it is a general mass consumer product, it is not very difficult to enter the market, and it can be widely set up at different income levels (including urban and rural areas); On the other hand, if it is a high-end consumer product that is not essential for life, it should generally consider setting up a sales point in an area with a higher income level.
Especially for some daily high-end consumer goods, such as clothes and furniture, monopoly points can be set up in large and medium-sized cities with high income level and concentrated population. Otherwise, if there is no certain sales guarantee, the store will be difficult to maintain.
In addition, an issue that enterprises should also consider when setting up sales points is that those areas with higher income levels have higher operating expenses and thus greater risks. Therefore, whether an enterprise sets up a terminal point of sale and what form it chooses must consider its overall strength. For example, in some places with high income level, retailers as terminal sales points, especially some large shopping malls, often charge manufacturers' fees such as "product entrance fee", "shelf fee" and "bar code fee". If these expenses affect the whole economic benefit, it is better to find another way. In addition, not all goods have to be built in the central business district to be conducive to sales. So we must consider a cost-benefit ratio here.
(3) Select according to the location of the target customer.
Let consumers buy easily once they need it, that is, "goods must follow consumers." No matter where consumers appear, goods that meet consumers' needs or shopping desires will appear at the same time. It is necessary to carefully study the possible range of activities of consumers, and what their possible needs and purchasing desires are in each place.
Generally speaking, the places where target customers often appear are: residential areas, commercial streets, schools, hospital gates, playgrounds, stations, docks, parks, leisure places, workplace edges, traffic trunk lines, etc.
(4) Choose according to customers' purchasing psychology.
Different customers have different psychological characteristics such as buying interests, concerns and shopping expectations. Customers' purchasing psychology directly affects their purchasing behavior. Therefore, if we do not consider the customer's purchasing psychology under specific conditions, time and place, blind selection of points will often produce unsatisfactory results.
(five), according to the needs of the competition to choose.
Enterprises must consider the situation of competitors from the perspective of survival or development when choosing terminal sales points. Therefore, the factors that need to be considered mainly include the following points: the number of competitors, competitor strategy, competitive advantage strategy, strategic objectives of enterprises and product life cycle.
1. Number of competitors
The more competitors there are, the more difficult it is to choose the terminal sales point, because on the one hand, it means that the market competition will be more intense, on the other hand, it also shows that the market demand is getting closer to the saturation boundary, which requires enterprises to be more cautious. Of course, many competitors also show that the popularity of goods is quite high, which will lead to the diversification of channel forms and is also conducive to the choice of terminal sales points. For example, communication products are sold in department stores and even in "counters" of clothing stores, hardware stores and grocery stores, in addition to relatively formal small-scale modern communication stores.
2. Competitor strategy
When enterprises choose terminal sales points, they must study and investigate the strategies adopted by competitors, and then choose points according to their own strength and conditions. Generally speaking, we should not adopt the same strategy as our competitors, so as to develop our strengths and avoid weaknesses, complement each other's advantages and make the market develop in a coordinated way.
3. Competitive advantage strategy
In channel construction, we should give full play to the advantages of enterprises. For example, when foreign brands enter the urban market of China, domestic enterprises can give full play to their "local" advantages. Strive to establish their own distribution network and convenient service system in the vast rural market.
4. Strategic objectives of the enterprise
The strategic goal of an enterprise is the overall goal of its development in a certain period of time. Distribution is one of the important means to achieve the above goals. For example, if the strategic goal of a large multinational enterprise is to occupy emerging markets, it must consider the markets of China, India and other big countries, so it should concentrate on establishing terminal sales points in these countries. However, distribution does not only passively adapt to the strategic objectives of enterprises, but its formulation and implementation will in turn affect the realization of the strategic objectives of enterprises.
5. Product life cycle
No channel or distribution network can guarantee that the product will always maintain its competitive advantage in its life cycle. Therefore, enterprises must consider the change, stage and length of product life cycle when choosing terminal point of sale.
(6) Choose according to the sales method.
Sales methods mainly refer to the forms taken by enterprises when selling products, including store sales and store-free sales. Under the modern market conditions, there is a trend of diversification in sales methods. Therefore, enterprises can choose a certain type of sales methods or adopt multiple sales methods at the same time when choosing terminal sales points, and make them complement each other. The density of terminal sales points is directly related to the balance of the overall layout of the enterprise market. If the distribution is too fine, it will not be conducive to fully occupying the market; If it is too dense, it may increase the sales cost, and the sales efficiency may be greatly reduced, which will aggravate the conflicts and contradictions between sales points. Therefore, how to maintain the moderate distribution of terminal sales points has become the key and central task of density decision.
(A), terminal point-of-sale density decision-making tasks
The basic task of terminal point-of-sale density decision-making is to determine how many channel members enterprises use to sell products in the target market, so as to maximize product distribution efficiency. The market coverage and distribution efficiency of enterprise products are the main basis for evaluating the correctness of enterprise terminal point-of-sale density decision.
Where the market coverage is high, the density of terminal sales points will be higher, because if there is not enough market coverage, it is difficult for production enterprises to achieve sales targets. Market coverage should be analyzed by market segments. Sometimes, although the total market coverage of a product is satisfactory, it is not so optimistic if it is aimed at a specific target market.
Distribution efficiency mainly refers to the delivery time and speed of enterprise products from manufacturers to target customers. A good distribution network should deliver products to consumers quickly, and the cost of transportation and management should be as low as possible. If the terminal point-of-sale network established by the enterprise can achieve this goal, it shows that its density is moderate. Otherwise, further improvement is needed.
Specifically, the task of terminal point-of-sale density decision-making has the following three points:
1. Maintain the balanced development of each terminal sales point of the enterprise.
2. Promote the coordination of terminal sales points and reduce conflicts between sales points.
3. Promote the orderly expansion and sustainable development of the enterprise product market. In essence, this requires us to pay attention to the combination of short-term strategy and long-term strategy of enterprise market development when making decisions on the density of terminal sales points.
(2), optional density scheme
Enterprises can adopt different density schemes according to the task of terminal point-of-sale density decision and the present situation and changing trend of themselves and the market environment.
1. Intensive distribution strategy
In intensive distribution, all channel members who meet the manufacturer's minimum credit standards can participate in the distribution of their products or services. Intensive distribution means fierce competition among channel members and high product market coverage. Intensive distribution is most suitable for convenient products. It promotes sales by maximizing the convenience for consumers. Adopting this strategy is conducive to widely occupying the market and facilitating the timely purchase and sale of products. The disadvantage is that the number of dealers who can provide services in intensive distribution is always limited. Manufacturers sometimes have to evaluate dealers' training, distribution support system and transaction communication network in order to find obstacles in time. However, in a certain market area, the competition among dealers will lead to the waste of sales efforts. Because intensive distribution intensifies the competition among dealers, their loyalty to manufacturers decreases and the price competition is fierce, dealers are no longer willing to receive customers reasonably.
2. Choose a distribution strategy
Manufacturers choose some middlemen in specific markets to promote their products. By adopting this strategy, production enterprises do not have to spend too much energy to contact a large number of middlemen, and it is also convenient to establish good cooperative relations with middlemen, so that production enterprises can obtain appropriate market coverage. A mechanism to continuously reduce costs by improving distribution efficiency.
2. Market coverage
Except those enterprises that have just started in the market, enterprises that are in the process of growth, expansion and maturity cannot ignore the market coverage of their products at any time. It can be said that the coverage rate is always the core factor that must be considered in the decision-making of enterprise density, because it relates to the survival and development of enterprises. In other words, it is not enough for enterprises to only consider reducing the cost of distribution network when designing distribution network. The pursuit of reducing the cost of distribution network may lead to a decline in sales, and an appropriate increase in the cost of distribution network may also promote a greater increase in sales. Therefore, under certain conditions, in order to improve sales and market coverage, enterprises may even increase costs to achieve sales targets. This is because each specific distribution network is always aimed at a specific target market. The improvement of market coverage means the improvement of the sales ability of a distribution network, the increase of the survival and development space of enterprises' products, and the realization of long-term strategic goals of enterprises.
3. Control ability
An important criterion for the correctness of enterprise terminal point-of-sale density decision is whether the enterprise can finally control the expanding distribution network. In fact, the decline of a considerable number of enterprises is due to their out-of-control of terminal sales points, which will not only reduce the distribution efficiency of enterprises, but also destroy the entire product market. In short, both exclusive distribution and selective distribution require enterprises to have good control over the distribution network.