Appliance Marketing Channel Conflict Problems and
Countermeasures
Abstract: Manufacturers in the current domestic appliance are competing very fiercely. In a environment of market economy, all the enterprises are striving to maximize their own interests. For the home appliance pro- ducers, the key to increase market share is the establishment of long-term good customer relations. Success- fully achieving this goal requires the efforts of all the channel members, thus building a good channel rela- tionship is a required course for the enterprise to maintain and expand the market. With sufficient statistic, this paper analyses the current status of household appliances (not including small appliances, household elec- trical appliances in this article are air conditioning, TV and other large appliances) industry channel, channel management problems and causes aiming to explore construction and maintenance measures of the sales channel of the home appliance industry .Through the research and analysis of the sales channel of the home appliance and the successful case, we can furtherly enhance the understanding of marketing channels for home appliances, and rich experience in building channel.
Keywords: appliances; channels; conflict; strategy
- Introduction
Channel as an extension of the production line, acts as the bridge between producers and consumers. Nowadays the production and distribution of goods are no longer arranged by the government, so each firm must find a way
to get more profit. Members within the channel and the
channel itself are important resources for the enter- prises .The greatest advantage lies in its network edge. Channels are critical for business, but depending on chan- nels too much is not a long-term strategy. As large num- ber of cases confirmed, channels can promote production and also do the opposite sometimes. This paper aims to analyse the defects of appliance marketing channels and the countermeasures.
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The basic theory of marketing channels
- Concept
Marketing channel refers to the route including various related organizations and their members by which the products shift from producers to the ultimate customers of goods, also known as sales channels. It is the bridge be- tween production and consumption, mainly consist of manufacturers, wholesalers, retailers and consumers[1].
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- Ideal channel type of the appliance industry
Most of the household appliances target to the con- sumer market. Home appliances are durable goods, gen- erally of higher-value and difficult to transport, so the appliance industry usually choose narrow and short sales channels. Salers need to acquire a certain expertise that help to provide customers with timely and thoughtful ser- vice. Manufacturers and distributors should be equipped
with a professional technical team responsible for product installation, maintenance and other after-sales service.
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Current appliance sales channels
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Kinds of appliance sales channels
- Chain Monopoly Group
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Kinds of appliance sales channels
Group home appliances chain stores is one of the most
important sales channels.This type of appliance-saling system is mainly based on sales channels of Gome, Sun- ing, which represent the integrated home appliance chain. This strong commercial capital has the most significant features of the wide market coverage, well-funded, large- scale cross-regional chain, and holds a huge marketing system.This is a highly efficient, specialized retail out-
lets.Group sales of chain stores take their risks by them- selves, so they can get maximum profit sharing from ap- pliance manufacturers.They gain advantage in the retail price from the economies of scale. In addition, many ap- pliance manufacturers are competing to cooperate with
chain stores, so chain stores group have a more obvious advantage against other sales channels in product variety.
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- Brand stores
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Brand stores are parts of manufacturersrsquo; self-built sales
channels.This strategy enhance the terminal control abil-
ity. This channel allows companies to quickly and accu- rately grasp customer feedback, and also timely adjust strategies to increase market responsiveness. Meanwhile,
the brand stores will help enterprises to better establish
and maintain product and corporate image. But this chan- nel construction strategy requires companies to cost a lot of manpower, material and financial resources, as well as lots of time. Therefore only when a company has a certain
degree of strength, and its brand awareness has been pretty high, the company has the chance to obtain advan- tages from this channel strategy.
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- Internet sales
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Appliance manufacturers constantly explore new mod-
els to improve their own sales channel system. Online sales channel model has just been emerging in recent years. Companies can save a lot of manpower, material resources by network-marketing media without slotting allowance, thus reducing a lot of cost. However, the pre-
sent network sales channel used by the appliance manu-
facturers is still in the initial stage, we must balance the
relationship between the net sales channels and the tradi-
tional channels. Therefore, the price of goods in the net
sales channels can not be too low. Appliance business usually sold different types of products in different chan- nels, to avoid pr
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