Structure Of Marketing Channel For Garment Enterprises

The structure can be divided into three types: length structure, hierarchy structure, width structure and breadth structure.

The three channel structure constitutes the three major elements of channel design, or channel variable.

Further, the length variable, width variable and breadth variable in the channel structure completely describe a three-dimensional channel system.

Length structure

Marketing channel

Also known as "hierarchical structure" refers to a channel structure defined in terms of the number of intermediaries (purchase and sale links), the number of channel levels.

Zero level channel, also known as direct channel, refers to a channel structure with no channel middlemen involved.

Zero level channel can also be understood as a special case of distribution channel structure.

In zero level channels, products or services are directly sold to consumers by producers.

The first tier channel includes a channel broker.

In the industrial market, the intermediaries are usually agents, commission providers or dealers, while in the consumer goods market, the intermediaries are usually retailers.

The two tier channels include two channels of intermediaries.

In the industrial market, the intermediaries of these two channels are usually agents and wholesalers, while in the consumer goods market, the two intermediaries are usually wholesalers and retailers.

The three tier channels include three channels of intermediaries.

Such channels are mainly found in the wide range of daily necessities, such as meat and instant noodles.

In the IT industry chain, some small retailers are usually not the service objects of large agents. Therefore, a professional distributor is derived between large agents and small retailers, and a three level channel structure is formed.

Width structure

Intensive type

Also known as a broad distribution channel, it refers to a channel type that manufacturers choose as many intermediaries as possible to distribute their products at the same channel level.

Intensive distribution channels, such as toothpaste, toothbrushes, drinks, etc., are commonly seen in consumer goods.

Exclusive distribution channel refers to a channel type that selects only one channel middlemen at a certain channel level.

In the IT industry chain, this channel structure mostly appears at the general agent or the total distribution level.

At the same time, many new products also choose exclusive distribution mode. When the market widely accepts the product, many companies shift from the exclusive distribution channel mode to the selective distribution channel mode.

For example, Toshiba's notebook product channel, Samsung's notebook product channel and so on.

Breadth structure

Channel

In fact, it is a diversified choice of channels.

That is to say, many companies actually use a combination of multiple channels, that is, the use of mixed channel mode for sales.

For example, some companies aim at large industry customers, directly sell large customer accounts within the company, adopt a wide range of distribution channels for a large number of small and medium enterprises users, and use mail order to cover consumers in remote areas.

Generally speaking, channel structure can be broadly divided into two categories: direct selling and distribution.

Direct selling can be subdivided into several types, such as the sales department directly established by the manufacturer, the industry customer department or the sales company directly established by the manufacturer and its branches.

In addition, it also includes direct mail order, telemarketing, online sales and so on.

Distribution can be further divided into two categories: agency and distribution.

Agents and distributors may choose intensive, selective and exclusive methods.

Figure 3 outlines the structural types of marketing channels.