Channels and the way they are valued

Channels of marketing the name itself already formulates the essence of such a term. As a matter of fact it means, mechanisms or even is more exact ways of sale (sale) the enterprise of production. And it is the efficiency of such channels that largely determines the profitability of the enterprise.

How to determine which of the available distribution channels can bring the maximum sales volumes, and provide the buyer with quality service while doing so. One of the main characteristics of the distribution channels is their throughput.

Often sales channels arise absolutely randomly. In this situation, the spontaneous distribution channels are characterized by a lack of producer control over prices. This is due to the emergence of a large number of intermediaries in such sales channels. In addition, in this scenario, the distribution channels can not be analyzed by the manufacturer, for the quantity and quality of the customer base, tracking the customer service support when intermediaries work. This situation often leads to the emergence of uncontrolled sales processes and the impossibility in the subsequent execution of sales plans through such channels.

In order to change the situation and make sure that the distribution channels meet all the requirements of the manufacturer, many enterprises follow a certain scheme of integrated estimates of sales channels. The main purpose of this method is the development of sales planning of the main not on intuition and inspiration, but based on the information received on the prospects of certain directions.

The first thing that is done with this technique is to compile a full list of possible feeds. For example, it could be: wholesalers, businesses carrying out the delivery and delivery of goods to the outlets, companies that combined both the first and the second, and a network of retail stores. At this stage, it is necessary to fully analyze all possible options, often overboard are 2-3 channels, which can bring quite a significant profit.

Next, let's talk about the evaluation criteria. The most commonly used criteria that the marketing channels evaluate are their profitability, customer satisfaction, the channel's control on the part of the producer (it's about controlling the price and movement of goods), the level of competition of this channel when working with it, and the prospect of such a channel in the long term.

Each of the above criteria has a ball system. And using this, you can determine how successful this channel will be in this or that situation. How much he is loyal to your product, and how profitable and long-lasting will be such cooperation of your enterprise and partners participating in such a marketing channel.

However, in addition to points, experts recommend to come up with a special weight coefficient for each criterion. This ratio is determined by the company's orientation in strategic planning, and its location in the market. That is, in other words, the coefficient expresses the degree of importance of some criterion for this particular company or for this particular group of products. After each criterion is evaluated and all scores are summed up, one can judge the quality and effectiveness of such a channel. And based on the results obtained, it is possible to say which sales channels are priority and which are not. This approach works with both direct and indirect sales channels. By the way, it should be understood what is the difference between them. Indirect channel of sale is when in the chain producer - the consumer is also the intermediary one or several is not important. And vice versa, when the chain is a short producer - the consumer and everything, then such a channel is called direct. Both have their own merits and demerits.