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    A Brief Analysis Of The Composite Channel Of Marketing Strategy

    2014/10/11 10:58:00 17

    MarketingChannelsManagement Skills

    In addition to clash of complex channels, traditional customer pairs

    online shopping

    A wait-and-see attitude is also a major problem faced by online marketing channels.

    Many traditional customers believe that online shopping has great uncertainty: can the products purchased be consistent with the description? How should products be handled if there are problems? Without real life physical contact, consumers will be doubtful about these invisible and intangible products.

    All of these affect their purchasing decisions.

    Foreign studies also show that risk perception is the main obstacle for consumers to purchase online.

    These facts show that

    Composite channel

    The problem of coordination and consumer risk perception is an urgent problem for enterprises to engage in online marketing.

    We select manufacturers led complex channels to discuss the above problems.

    The compound channel of manufacturers refers to the product sales of manufacturers using both online marketing channels and intermediaries channels, among which manufacturers and middlemen show "leader follower" relationship.

    Many scholars have found that consumers' subjective perception has an impact on the strategy of composite channel design.

    Rhee and Park point out that consumers can be classified into price sensitive categories, and then establish a model of interaction between producers and intermediaries, and propose a composite channel design strategy.

    We infer that consumer risk perception, as an important consumer's subjective perception, has an important impact on the design, coordination and profitability of composite channels.

    In order to make a scientific and reasonable analysis, we set up a hypothesis model and introduce the concept of marketing effort in the model.

    The marketing efforts of channel businesses refer to the activities of channel marketing such as advertising, collecting and distributing product information, increasing product category and providing after-sales service in the process of meeting the needs of consumers.

    Li Ning Co set up online marketing channels, and are committed to gathering relevant information from consumers to help customers get personalized services. China Mobile's opening of "online mobile business hall" to achieve customer online services, etc., is a marketing effort.

    The activities of marketing efforts bring higher costs to enterprises, and also increase the demand for products in the channels and increase the overall profits of enterprises.

    In the compound channel, the increase of marketing efforts can stimulate the demand of products in this channel, and at the same time, it has a positive impact on the demand of the product on another channel.

    We choose the factors such as logistics cost, marketing effort level, wholesale and retail price of manufacturer's unit products, which are considered as factors affecting the model.

    By analyzing the risk perception of shopping online shopping channels, we can draw the following two conclusions.

    First, the degree of marketing efforts of manufacturers in online marketing channels will decrease with the increase of consumers' perception of online shopping risk, while the degree of marketing efforts of middlemen will increase as consumers' perception of online shopping risk increases.

    The overwhelming majority of traditional consumers are also resistant to online shopping. The risk of online shopping is always a psychological obstacle to their buying activities.

    When the perceived risk of online shopping increases, consumers are deterred from products and then turn to traditional intermediaries to buy goods.

    The final result of these behaviors of consumers is the decrease in sales volume of online shopping channels, and the sales volume of middlemen channels keeps even rising.

    At this point, the manufacturer adjusts the marketing strategy according to the sales volume of different channels in the compound channel, and arranges the marketing efforts, so as to reduce the efforts in the online marketing channel and enhance the marketing efforts of the middlemen.


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