The purpose of distribution is to add new channels. Distribution is a very convenient and low-cost model, so many industries are willing to choose distribution. The enterprise provides the product to the middle enterprise at a price lower than the market price, the product is sold, and the middleman sells the product to the consumer with some profit, and also obtains a profit. It has obtained huge profits at the lowest cost, and consumers can easily obtain products and services, which can be said to kill two birds with one stone. In addition, suppliers cannot deploy all markets , and suppliers themselves have limited ability and energy. Therefore, it is a clearer choice to find someone to help spread the market.
Specific functions The basic function of distribution channels is to enable the transfer of products from producers to consumers. But it also has Fax List other functions. The main functions of distribution channels are: That is, extensive distribution, enterprises can choose a large number of middlemen to sell their products, as long as the middlemen who meet the requirements of the enterprise can apply to join. In intensive distribution, the company's products can be seen by more people, allowing more people to perceive and buy the products, but the company does not choose middlemen, and it is impossible to know the strength of the middlemen, which may increase distribution costs.
The number of middlemen aggravates the management difficulty of the enterprise, and it is difficult to effectively control the middlemen. Intensive distribution is often used in the distribution of products with a high degree of standardization, serialization and generalization in daily necessities, impulse consumer products and industrial products. It is suitable for products that customers need to carefully compare and select in terms of price, quality, color, style, etc. before deciding to buy. Enterprises filter and select the best middlemen, which is narrower than the intensive distribution. Generally speaking, enterprises first intensively distribute, and then choose high-quality middlemen to sell their goods after occupying the market.