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    Teach You How To Get Along Well With Traditional Channels.

    2011/3/24 16:23:00 184

    Internet Marketing Internet

    along with

    Internet

    With the extensive application of e-commerce and the promotion of e-commerce activities, the new mode of composite channel has been developed.

    Many enterprises have already put the Internet on the Internet.

    Marketing

    Channels are also integrated into complex channels.


    However,

    Internet Marketing

    Channel is a double-edged sword.

    While it brings many benefits, it inevitably leads to new problems.

    The most noticeable problem is the conflict between network channels and traditional channel providers.

    Frost (Forrester) conducted a survey of 50 consumer goods producers. The results showed that the most serious problem faced by enterprises in implementing network marketing strategy is the problem of compound channel conflict.

    In 2008, the online retailer Jingdong mall sold a BenQ projector at a price of less than 500 yuan, which directly led to confrontation between the two sides.

    In addition to the conflict of compound channels, the wait-and-see attitude of traditional customers to online shopping 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 the coordination of complex channels and the perception of consumers' risks are urgent problems 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 conduct scientific and reasonable analysis, we set up a hypothetical model like Figure 1, and introduced 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 cost to the enterprise, increase the demand of the products in the channel and increase the overall profit of the enterprise.

    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.


    Secondly, the profit of the manufacturer and the profit of the composite channel will decrease with the increase of the perceived risk of online shopping, and it will also increase with the decrease of risk perception.

    When the online marketing channel and the middlemen channel play a role simultaneously, the total revenue of the whole composite channel is the largest, and the overall income of the composite channel is more closely related to the risk perception of consumers.

    Enterprises should take relevant measures as far as possible to reduce consumers' perception of online shopping risk.


    We will further study the strategy of coordinating the compound channel.

    After careful reflection, we will find that there are great differences in the characteristics, functions and forms of the two channels.

    For example, the online marketing channel is convenient and quick, but the whole purchase process is completed through virtual network, which has no direct contact with the channel staff and physical products, and is more acceptable to consumers who are keen on novelty and daring to take risks. While the sales process of middlemen channel takes more time, it involves direct contact with channel staff, which can directly view and touch products, and is more favored by traditional consumers.

    More and more consumers have mixed two channels.

    If the functions of manufacturers are arranged according to their respective functions and characteristics, will it help to coordinate the conflicts within the complex channels?


    In summary, we propose two coordination schemes of A and B.

    The A plan means that manufacturers rely solely on online marketing channels to engage in sales activities of the product to achieve pactions with consumers; intermediaries only introduce products to consumers, sell products, provide after-sales services, and focus on providing marketing efforts to create demand.

    Middleman mainly assists consumers in purchasing from manufacturers' online marketing channels, and proceeds are obtained from manufacturers' rebates.

    Under such a scheme, the middleman actually acts as the marketing agency of the manufacturer.

    For example, Mcglaughlin's official B2C mall is mainly used as a trading platform to create revenues and profits. The main function of offline stores is not to create profits, but more to display experience and service functions.


    The B plan shows that the manufacturers complete intermediaries to complete pactions with consumers. Online marketing channels only provide products and middleman information to help consumers buy through intermediaries.

    At this point, the manufacturer's compound channel strategy is mainly composed of traditional channels, supplemented by online marketing channels.

    Sales products are mainly realized by traditional channels, and the main purpose of online marketing channels is to promote shop channel sales.

    This situation is universal in reality, such as McDonald's, the service industry often can not complete pactions and consumption on the network; many luxury goods, high-value products, such as cars, etc., the main significance of its online channels is network promotion, new customers, and promote sales of physical channels.


    Similarly, on the basis of the 1 model, we can draw another two conclusions after considering all the factors. When the unit logistics cost of the intermediaries is less than the unit logistics cost of the online marketing channel, the A scheme is better than that of the composite channel, and is also better than the B scheme, that is, the A scheme > the incongruity > B plan.

    When the unit logistics cost of the online marketing channel is less than the unit logistics cost of the middleman channel, the enterprise composite channel B scheme is better than the compound channel uncoordinated situation, and is also better than the A scheme, that is, the B plan > the incongruity > A plan.


    The above conclusions have positive guiding significance for the enterprise's compound channel strategy.

    By conclusion, we know that reducing the risk perception of consumers online shopping is a problem that enterprises need to pay full attention to and seriously solve when implementing the compound channel strategy.

    On the one hand, enterprises can encourage consumers to reduce their perceived risk by buying a brand-name, buying high priced products and so on. On the other hand, enterprises can also provide consumers with various ways to reduce risk, such as safety payment, refund guarantee, replacement of goods, online display, website reputation, purchase experience of the same website, goods ratio three, product composition information, and chatting room.

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