"Five Criminal Certificates" for LED Lighting Enterprise Marketing Channel Management

An LED lighting product is delivered from the finished product to the customer's hand. It is through the loop of marketing channels that the goods are finally delivered to the user, thus completing the entire circulation. Therefore, the management of product marketing channels has naturally become the most concerned topic for many LED lighting companies. An LED lighting product is delivered from the finished product to the customer's hand. It is through the loop of marketing channels that the goods are finally delivered to the user, thus completing the entire circulation. Therefore, the management of product marketing channels has naturally become the most concerned topic for many LED lighting companies. A healthy, unobstructed and efficient marketing channel will have a significant impact on the product's introduction to the market and sales performance. This is evident from the fact that the channel has been circulated in the industry. This article takes A company as an example to talk about the five major crimes of LED lighting enterprise marketing channel management, and gives corresponding solutions, hoping to bring inspiration to the industry. Attachment: Company A is a leading manufacturer of LED lighting products in China. In recent years, with the intensification of market competition, it has been on the verge of failure. The company hopes to seek a breakthrough for the development of the company by optimizing its marketing channels. A company's marketing channel management crimes of the crime certificate 1: marketing channel conflicts according to A company's internal statistics, in January 2016 to November due to conflicts between various sales channels, such as product cross-regional sales, price vicious competition, etc. 20 million sales lost and 3 million yuan in lost profits. In the entire marketing channel system, conflicts between channels often occur. Due to the nature of the enterprises, the members have formed an imbalance in the distribution of sales resources. The bias of these resources will certainly lead to the formation of a certain marketing channel member in one region, which is more powerful than the other member. These advantages can be expressed as the price advantage of selling products and the advantages of promotion policies. At the same time, in the assessment of channel members, Company A pays more attention to the realization of sales targets, which is unavoidable. Some marketing channel members use their relative advantages to take possession of sales performance that should belong to other marketing channel members. Achieve its purpose of completing sales tasks. Crime 2: Lack of incentive mechanism, insufficient sales drive A company's marketing channel secondary wholesalers' purchase prices are 87% to 88% of the wholesale price of products. This means that the gross profit of its products is only about 13%, which also requires product logistics costs, sales costs, promotional activities, company operating costs, personnel costs, taxes and capital costs. The profits earned by relying on the difference in product sales and sales are very limited, and there is even a risk of loss. The sales profit of the marketing channel members is too low, which will inevitably lead to a decline in the sales enthusiasm of the marketing channel members. This is not only reflected in the sales performance, but also affects the performance of the product retail terminal, the implementation of the promotion activities, and the implementation of the company policy. The same new products are on the market, and the execution force of the company's own sales team is significantly higher than the efficiency of distribution. Most of the factors are driven by the dealers. In the big goal set up by the company's marketing channels, Company A has considered the guarantee of its own profits more, and has not considered more the interests of other members of the channel, which will inevitably lead to the decline of the efficiency of the entire marketing channel. Crime 3: Poor communication of information and untimely feedback of information In the marketing channel system of Company A, another important issue is the incompatibility of information communication among members of various channels, and the feedback of market information is not timely. Because the marketing structure of Company A is not flat enough, the general distributors, first-level and second-level distributors also include marketing members within and outside the enterprise. Excessive marketing links and members will not exist in market information transmission and feedback. Timely situation. For example, Company A launched new products in the fourth quarter of 2016. At that time, the media launch plan was announced and communicated with each marketing channel member three months ahead of schedule. However, due to market factors, the media delivery time was delayed by half. At the beginning of the month, the members of the self-operated channel got relevant adjustment information on time, and the members of the wholesaler channel failed to get the update news of the media release changes. The lack of information communication has caused the asymmetry of channel member information, which leads to the disconnection between the activities of the terminal and the media. Crime 4: The lack of channel supervision mechanism At present, Company A has insufficient supervision over the behavior of each channel member in the entire marketing channel system. In the early stage of the speculation of these channel members, there will be corresponding signs. By supervising the elements, the conflict can be prevented in a timely manner. For example, cross-regional sales of channel members can form an effective early warning mechanism by comparing their sales data over the years. In the early stage of cross-regional sales, channel members will prepare products for this purpose, so that the quantity of one or several products purchased in a period of time is significantly higher than that of the same period last year, and some even reach several times, if there are perfect members The comparison warning system of the quantity of purchases can find problems in the early stage of channel members' behavior and avoid the conflict of marketing channels. Criminal evidence 5: Unclear positioning of network sales and unreasonable structure As a long-established LED lighting company, A company did not pay much attention in the early stage of e-commerce development, but relied more on traditional sales channels and online retail sales. The product's audience is small, and brand promotion is limited. With the popularity of the Internet, the advantages of the e-commerce sales platform have become more and more obvious. The rich product selection, convenient payment function, and door-to-door delivery have attracted a large number of consumers after 80 and 90, in just a few years. It has achieved rapid development. Hundreds of thousands of original products that were not well-known have traveled all over the country with the help of e-commerce platforms. They have instantly become well-known and well-known products and have achieved rich market returns. When Company A began to realize the trend of e-commerce development, it also saw its actual situation in which the marketing channel started late and the professional operation was lacking. In order to narrow the gap in a short time, Company A adopted a large amount of investment in sales. Its development. To a certain extent, it has a certain effect, and the sales performance of Company A's online sales company has increased significantly every year. But it must be pointed out that most of these performances are diverted from the traditional offline channels. Redemption Strategy (Optimization Proposal) 1. Balance the resource allocation of each marketing channel member. Under the premise of a common goal, in principle, each marketing channel member is assigned to the sales resources it deserves according to its role in the channel. The sales resources of marketing channels at the same channel level are basically equal. Of course, in the actual operation, each channel has a quality difference. For a good quality marketing channel, it is allowed to have certain resources, but it must also consider the impact on other marketing members. In the marketing system of Company A, in the distribution of sales resources, the inequality of trade conditions between the self-operated channels and the wholesalers channels is reduced as much as possible, and the right to equal sales of all marketing channel members is fundamentally maintained, which not only ensures the marketing channels. Reasonable and comprehensive development, and can reduce the occurrence of marketing channel conflicts. 2. The guarantee of reasonable profit of marketing channel members. The marketing channel essentially relies on the interests to maintain the members of the marketing channel and form a network of interests. Any member of the network, once it is unable to obtain the relevant benefits, the network established by the marketing channel will become vulnerable and even destroyed. Company A has a certain increase in the profit margin of the sales of middlemen products, which can be adjusted by directly reducing the supply price to the middlemen's products or by increasing the profitability of the sales year, thereby expanding the legitimate interests of the intermediate sales, in the relevant interests. Driven by its subjective enthusiasm for product sales. 3. Construction of the information platform. The smooth communication of information is conducive to the regulation and effectiveness of behavior among members of the marketing channel, avoiding the unnecessary consumption and conflicts within the channel members caused by the lack of smooth communication and information deviation. Company A should hire a professional company to set up a relevant information system platform, responsible for the accurate communication of the company information among the members and the objective feedback of the market situation, and at the same time promote the information exchange between the members of the marketing channel. Comprehensively collecting information from all aspects has important guiding significance for the development and adjustment of marketing channels, and provides a basis for decision-making. 4. Strengthening of supervision and reward and punishment systems. Company A should respond to channel members' profit on product sales, prevent the company from returning profits through a vicious expansion of sales scale, and pay special attention and supervision to products that are lower than the company's market-guided price or zero-profit sales. Control the illegal use of sales resources at the source, so that channel members' violations, lose the source of their resources, and thus control their market behavior. It can be summarized as follows: supervise the sales expenses to be dedicated to the special funds; maintain the product sales guide price, and strictly control the sales of ultra-low-priced products. In the case of customers who violate the company's regulations and take risks, they have a strict punishment system. Once they are found to have violated the rules, they will pay more than they will, and thus strengthen the regulation of channel members' behavior and the benign development of the market. 5. Actively strengthen the service management of wholesalers. Wholesalers have played an important role in the marketing channel and become an indispensable part of it. Now more and more LED lighting companies are trying to optimize the efficiency of marketing channels and maximize the enthusiasm of wholesalers to achieve sales scale. The expansion has continuously strengthened the management of wholesalers and provided related services, so that wholesalers can put more energy into sales. 6. Improve the price system. It is recommended that Company A reduce the price difference between horizontal channels among different sales regions, and mobilize the sales enthusiasm of members at all levels of the channel through the acquisition of reasonable profits. And at different stages of development, the corresponding dynamic adjustment of the price system is made to meet the needs of development. Control the range of rebates, avoid excessive sales rebates, and cause channel members to pursue profits in the pursuit of profits at the expense of the price system, and squeeze the marketing channels caused by other sales markets. 7. Optimization of e-commerce channels. The traditional marketing model has been in operation for more than ten years in Company A. It has already reached a considerable scale. The company's products have entered the stage of deep distribution in the early stage, and effectively covered the first- and second-tier cities in China. For this situation, the network sales are even larger. The role is reflected in the effective complement of the market gap, and in line with the traditional channels to promote the market, it is not easy to invest too much resources in the field of product sales, especially subsidized in the price of products. In this regard, it is recommended that Company A needs to make several adjustments: 1) Formulate a price system for online sales and traditional sales, and promote the product online and offline channels to be basically consistent. The largest price difference remains at 1-2%. 2) Adjust the category structure of online sales and traditional sales channels, and adopt differentiated sales methods. By distinguishing between product specifications and packaging differences, the products of the two marketing channels are not directly comparable to consumers, reducing the occurrence of channel conflicts. 3) In the use of sales resources, online sales channels are more devoted to the beautification of web pages, the establishment of members, the promotion of product image, etc., and avoid the simple use of the price of products. In short, only the marketing channels that are suitable for the development needs of the enterprise, and constantly adjusted accordingly, can provide higher efficiency and better results, and ultimately make the enterprise gain huge profits.

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