How Should International Distribution Channels Be Managed?

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1. choice of middlemen

In fact, there is a "two-way choice" problem among the distributors of international enterprises.

Middlemen must have a well selling product before they can be based on the market.

This determines that they are looking for manufacturers that manufacture these best-selling products, and aspire to be members of their distribution channels.

To better deliver products to users, international enterprises must establish corresponding distribution channels. The efficiency of channels is closely related to the quality of middlemen.

Before choosing, we must attract many middlemen to come to "candidates" and attract the conditions of whether the international enterprises have a high reputation and whether they have the best selling products.

The choice of middlemen is a difficult task. It is hard to predict the consequences if it is mistaken.

International enterprises must first identify the conditions that various intermediaries should have, and then select all intermediaries one by one from those enterprises that meet these requirements.

The criteria for choosing middlemen include: the marketing history, reputation, business scope, sales ability, teamwork spirit, quality of employees, location of enterprises, types of customers, etc.

2. incentives for middlemen

After the middlemen are chosen, the distribution channels will be established. Enterprises must adopt various measures to fully mobilize the products of their distributors.

Because the relationship between middlemen and international enterprises is very different from that of international enterprises in choosing channels.

In the unified vertical distribution system, the basic interests of international enterprises are consistent with those of middlemen. As long as their status and role are clearly defined, efforts can be made to maximize the overall benefits of distribution channels.

In other forms of distribution system, the middleman is an independent operator and has its own marketing objectives. Therefore, enterprises should always overcome the contradictions arising from the inconsistency between their interests and the interests of the middlemen, and adopt various measures to adjust the relationship.

For example, giving middlemen a high profit opportunity, offering preferential supply conditions, and also considering the training of all kinds of personnel in intermediaries and giving them economic support for advertising and other promotional activities.

Many international enterprises adopt the strategy of reward and punishment for "carrot and stick" to encourage them.

3. evaluation of middlemen

All intermediaries in the channel should clearly understand that the middlemen are also in a competitive state of survival.

International enterprises should regularly examine and evaluate the members of distribution channels. The contents include: average inventory, pportation time, storage quality, cooperation degree on sales promotion, completion of distribution quotas, quality of service for customers, etc.

The assessment is carried out according to the established standards, with the aim of making necessary adjustments to middlemen at any time.

Middlemen who fail to meet the required standard should take various measures to arouse their enthusiasm or remove them from the channel.

4. evaluate distribution channels.

There are three main contents of the distribution channel evaluation: whether the economic benefits obtained by the distribution channels have reached the expected economic benefits when the channel is designed; whether the control power of the channel is consistent with the control power of the channel in the design enterprise and the strain capacity of the distribution channel.

The purpose of the enterprise's assessment of distribution channels is to provide accurate basis for marketing decision makers to redesign and establish new distribution channel decisions in making use of the existing distribution channels or abandonment of the original distribution channels.

Of course, enterprises sometimes find that competitors establish a brand new distribution system to compete with themselves, and they are at a distinct disadvantage at this time. Enterprises also make decisions to abandon old channels and rebuild new channels.

From all angles, the phenomenon of completely abandonment of the original channel is relatively rare, and more is the pformation and establishment of new distribution channels.

With the change of the international market environment, enterprises will be more active in finding various forms of distribution channels and channels suitable for their development, and find that opening up new distribution channels will become more and more important. This is also becoming an important part of international enterprise distribution management.