A Brief Analysis of the Distribution Model in Industrial Products Marketing

Abstract. The distribution of industrial products is quite significant for product marketing. The industrial product marketing consists of indirect sales and direct sales. Aiming at the two sales models, how to establish the distribution system in industrial products marketing process is introduced, and meanwhile, the establishment of distribution system and the selection of distributors are discussed in this paper, which will provide theoretical basis for the establishment of distribution model in the industrial products marketing process.

Key words: industrial products marketing, distribution, system, channel.

1. Introduction

For the industrial products manufacturers, one of the significant links in the production and management process is product marketing. The traditional method of industrial products purchase is the door-to-door promotion or bidding. With the deepening of reform and opening-up, the distribution system also develops towards the marketization gradually. However, for manufactured goods, the development of the distribution system lags behind the development of consumer goods. Gradually, a distribution system applicable for the product features has been established during the process of industrial products marketing, and certain channels are created in the industry for marketing. Under such circumstances, a new problem occurs, namely how can manufacturers promote the marketing efficiency of products with the sale force. As a result, the distribution model develops gradually in industrial products marketing process, and it can promote the marketing of products to a certain extent.

2. Causes for the generation of distribution system of industrial products marketing

As for the marketing of industrial products, whether the manufacturers sell it directly or certain distribution systems and channels are established and developed, is a significant matter that should be considered by the manufacturers. If the distribution system shall be established shall not rely on the profit of manufacturers simply, and during the specific marketing process, the manufacturers shall consider several problems about if distributors shall be selected or not. Firstly, the enterprise shall analyze various marketing strategies in the industrial products marketing system, and clarify the functions that have positive impacts on the realization of marketing goals, for instance, nearby inventory, individual manufacturing, etc. Secondly, the functions during the marketing process shall be analyzed, unsustainable or relatively superior projects shall be clarified for making contributions to the maximization of enterprise profit. Thirdly, there are certain weaknesses in the enterprise, can it be compensated by the external distributors. The enterprise can consider these problems and make certain decisions, thus to decide if it is necessary to establish corresponding distribution system, especially for the printing, electronics, and office equipment industry, etc. problems concerning the construction of distribution system shall be considered.

3.2 Factors influencing the distribution policies

The distribution policy is a significant guarantee for the launching of distribution work. During the process of making distribution policies, a lot of elements shall be considered. Currently, many manufacturers and factories may manage the distributors insufficiently, resulting in many disputes in the marketing process and failure in the management of distribution network. Different from the common consumer goods, the sale of industrial products is a long-term activity, and in order to protect the interests of each party, there should be a long-term agreement period between the manufacturers and distributors for protecting the interests of both parties. It is relatively difficult for manufacturers.

When making distribution policies for different regions, the manufacturers and enterprises shall follow the marketing rules of the enterprise and make corresponding distribution policies according to the special conditions in different regions. The distribution policy of industrial products is made based on the concession agreement of distribution, in which, the specific responsibilities and interests of both parties of the manufacturers and distributors shall be clarified during the marketing process. The most common problem in the process of making distribution policies may be the phenomenon of unbalanced rights and liabilities in the concession agreement, or the manufacturers deliberately fuzz up the clauses unfavorable for their own development, which may bury the hidden danger for the future operation. When the manufactures make distribution policies, the sales principals of the manufacturers shall illustrate the strategic intensions to the distributors in detail, and make sure that the distributors are clear about the strategic intent, thus to prevent unnecessary disputes or conflicts in the future cooperation and to maximize the profit of both manufacturers and distributors.

3.3 Conducting distribution management

The selection of distributors and the making of distribution policies will lay certain foundation for the distribution work. During the process of launching distribution work, the manufacturers shall strengthen the management of distributors for enhancing the working efficiency of distributors.

1. As for the management of distribution policies, it should consider the product portfolios at first, especially for the industrial products, it prefers one-stop procurement methods for consumers. Therefore, when marketing the industrial products, it can strengthen the rational combination of regular products and products with strong competitive strength, thus to promote the realization of sales target for various products during the sales process. Secondly, corresponding combinations of price shall also be conducted, products with low price and high price can be combined, and different prices shall correspond to different products for combination sales, which can satisfy the one-stop buying demand of the customer. Finally, the price for the distributors shall be unified, and when determining the delivery price of products, the manufacturer can calculate according to the distribution conditions of several places and then determine a unified delivery price for the distributor. During the marketing process, various measures can be adopted for promoting the sales initiatives of distributors, such as rebating can be employed to encourage the distributors to enlarge their market shared during the marketing process.