Distribution channels, also known as sales channels, refers to the flow of goods from the producer to the consumer (including production and consumption) when the transfer of links and exchange forms. It is not only a way to achieve product sales, but also an important source of understanding market demand.
Distribution channel system is the sequence of distribution links through which goods are transferred from the production field to the consumption field. In this system, each individual (subsystem or branch system) is always interdependent and mutually constrained. Modern distribution channel system has four models: direct market distribution channel system, vertical distribution channel system, horizontal distribution channel system and matrix distribution channel system.
The direct market distribution channel system is a distribution channel system in which producers sell their products directly to consumers or exchange their consumer goods directly through the market. It arose in the form of small production, however, in terms of the business characteristics of certain commodities, it is more economical and reasonable to use this distribution system today, such as aerospace equipment, large power station equipment, large sets of equipment, etc.
Vertical distribution channel system is a vertical sequence of distribution links from production to consumption, which can be divided into natural vertical distribution channel system and artificial vertical distribution channel system. The former is the sequence of links through which the circulation of goods in their natural state, the latter refers to the distribution channel system with a high level of dedicated management center network, designed through prior planning to achieve maximum economic efficiency or market impact.
Horizontal distribution channel system is due to any one distribution channel entities feel a risk of entering the market is too large or thin funds, lack of manpower, a number of distribution entities to jointly develop new marketing opportunities to enhance market competitiveness, voluntarily united as one. This horizontal joint horizontal distribution channel system, which is conducive to the development of the market, the occupation of the market.
Matrix distribution channel system is through a reasonable combination, so that a variety of goods in different markets have a variety of distribution channel system, and to carry out the competition between the system and the formation of a matrix distribution channel system. For example, some enterprises sell the same commodity through more than two different distributors, and some enterprises send different commodities to a certain retail enterprise through different distribution channels, so that they sell their own different categories of goods and implement unified marketing management.