Direct sales. Advantages and disadvantages

Creation of a sales system - strategic objective any company. A mistake in choosing distribution channels means a lack of cash flow into the company, which will ultimately lead to its bankruptcy. In this case, it is important to follow a certain sequence of designing a sales system, based on a preliminary thorough study of the sales market. Let's consider the algorithm for organizing a sales system.

Organizationally, sales consists of bodies and sales channels that ensure the transfer of goods from producers to consumers. From an economic point of view, sales is the sphere of reproduction of added value, creating conditions for profit making by all companies participating in this process. From a marketing perspective, sales is a system permeated with multilateral communication interactions, among which the most important are personal contacts, which create conditions for long-term cooperation.

Let us list the main functional blocks of the sales system that are in continuous interaction with each other:

sales channels (marketing channels);
distribution logistics;
sales marketing.

In some cases, instead of “sales channel” it is advisable to use the term “marketing channel”, especially when there is a large volume of communication interaction between channel participants - for example, when selling complex equipment, technologies, information services. In this case, the role of the marketing channel is much higher than that of sales and distribution channels, which follows from its following essential features:

the marketing channel represents a market-oriented structure consisting of interdependent and interconnected entities involved in the formation of added value for consumers;
channel participants carry out communicative interactions that contribute to the growth of the value of partnership trust relationships;
participants coordinate their activities in such a way as to best satisfy their needs and the needs of final buyers (consumers);
thanks to high level interactions, channel participants organize processes that form competencies that are difficult to imitate by competitors.

Algorithm for organizing a sales system

Strategic decisions when organizing sales:

Determining the type and number of distribution channels (traditional channel, e-commerce, catalog sales, sample sales, etc.)
Selecting a sales method (direct, indirect, combined).
Establishing the intensity of market coverage (intensive, selective, concentrated, exclusive).
Determining the types of intermediaries (wholesalers, retail) and determining their role in distribution channels. At the same time, it is necessary to assess the possibilities of wholesale and retail (size of turnover, level of specialization, ability to provide logistics, technological and service services).
Determining the level of centralization of decisions in the field of sales (decisions can be centralized or decentralized) - with the development of regional sales.
Selecting the level of sales integration (determining the level of vertical and horizontal integration).
Deciding whether competition is necessary—both within and between distribution channels.

Sales channel— the path along which a product passes from the manufacturer to the final consumer.

The following commercial flows are formed within the distribution channel:

flow of property rights;
physical flow - the movement of goods through a channel from the manufacturer to the final buyer;
the flow of orders consistently generated through the distribution channel from the final buyer to the manufacturer;
financial flow coming from the buyer;
flow of information from producers to customers and vice versa.

The main types of distribution channels are presented in table. 1.

Table 1. Types of distribution channels.

Each manufacturer can simultaneously have several channels, i.e. a combined distribution system. Let us list the advantages and disadvantages of direct and indirect marketing methods.

Direct sales: advantages

The company can make large profits.
The share of cash is increasing.
The manufacturer knows the consumer well.
Direct control of the price and quality of goods.
It's easier to maintain an image.
Consumers are more willing to buy from the manufacturer.
Flexible pricing policy.

Direct sales: disadvantages

The costs of maintaining the sales structure are increasing.
Accounting for commodity and cash flows is becoming more complicated.
The need for large investments.
Limited service area.
Small sales volumes.

Indirect sales: advantages

Shipment of large quantities of goods is possible.
New markets are being developed faster.
Customer needs for availability, quantity, speed and service are better met.
The manufacturer can concentrate on production.

Indirect sales: disadvantages

Control over prices and quality of goods is lost.
The manufacturer understands the consumer less well.
Profits are reduced by providing discounts to intermediaries.
The manufacturer, working through wholesalers, becomes too dependent on them.
Intermediaries are unpredictable.

Conclusion: turning to intermediaries leads to the fact that the manufacturer loses control over some processes of the sales system, but gains the opportunity to better satisfy the needs of end customers.

Combined (multi-channel) sales is used very widely because it allows:

increase market coverage;
take a differentiated approach to servicing each market segment;
create competition between channels and thereby increase their motivation to work more efficiently;
reduce the cost of maintaining your own sales channels while maintaining the benefits of direct sales.

TO disadvantages of multi-channel systems sales include the problem of monitoring the effectiveness of each channel, as well as conflicts between channel participants. When choosing distribution channels, you can use the recommendations given in table. 2.

Table 2. Selection criteria sales channel.

(asterisks indicate priority in deciding on the choice of distribution channel)

Characteristics taken into account	Direct channel	Indirect channel		Comments
Characteristics taken into account	Direct channel	short	long	Comments
Buyer characteristics
Numerous				The principle of reducing the number of contacts plays an important role
High concentration				Low costs per contact
Large purchases
Irregular purchases				Increased costs for frequent and small orders
Prompt delivery				Availability of stocks near the point of sale
Product characteristics
Consumable Products				Need for fast delivery
Large volumes				Minimizing transport operations
Technically simple				Low maintenance requirements
Non-standardized				The product must be tailored to specific needs
New products				Careful “monitoring” of a new product is necessary
High value				The cost of establishing contact is quickly amortized
Company characteristics
Limited financial resources				Sales costs are proportional to sales volume
Full range				The company can offer full service
Good control is desirable				Minimizing the number of orders between a firm and its market
Widely known				Good reception from the sales system

From the table 2 shows that the determining factors are the type of buyers, the type of product and the type of the enterprise itself.

Simultaneously with the design of sales channels, a sales body is selected - a division in which sales functions are concentrated.

There are the following options organizational forms sales:

Sales department.
A trading house that performs the functions of a sales department (centralized sales).
Combined option - sales department and trading house.
Sales department and regional structures of the enterprise.
Sales department, regional structures of the enterprise and independent intermediaries.

When building organizational structure Sales of an enterprise needs to determine the degree of centralization of decisions made, the need for competition between channels, and also determine the boundaries of activity - by territory or by industry.

Creating a sales system is a strategic task for any company. A mistake in choosing distribution channels means a lack of cash flow into the company, which will ultimately lead to its bankruptcy. In this case, it is important to follow a certain sequence of designing a sales system, based on a preliminary thorough study of the sales market.

warehousing of goods before transportation and necessary modification of goods in the warehouse;
organization of transportation of goods;
assistance to all intermediaries in the organization effective sales goods;
management of inventory of goods within the enterprise and its branches;
collection and systematization of opinions of final and intermediate consumers about products and the company.

Existing distribution channels involve the use of three main methods of marketing products: direct or indirect; indirect; combined or mixed.

Direct (direct) sales allows you to establish direct contacts with buyers without resorting to the services of independent intermediaries; it is most widespread in the capital goods market (oil, coal, machine tool companies).

Direct sales allows you to maintain full control over the management trading operations, better study the market for your products, establish long-term relationships with key consumers, and increase the number of sales. Direct sales are rarely used in the consumer goods market. However, its separate forms are used, such as direct marketing (direct work with clients) and telemarketing (selling goods and services over the phone).

Indirect sales is a sales method in which product manufacturers use the services of various types of independent intermediaries. There are several forms of work between a manufacturing enterprise and intermediaries:

1) extensive sales– placement and sale of goods at any enterprises of resellers who are ready and able to do this. In this way, simple, small, inexpensive products of mass demand are distributed;
2) exclusive distribution– selection of one reseller in a given region, who will sell the manufacturer’s products. Such an intermediary usually has the exclusive right to sell goods in a given region;
3) selective sales– selection of a limited number of intermediaries depending on the nature and clientele, the possibility of servicing and repairing products, and the level of personnel training. It is used when products require special servicing, provision of spare parts, establishment of repair shops or specially trained personnel. This method is usually used when selling expensive, prestigious goods.

Combined or mixed sales - a method in which the manufacturer uses both direct and indirect sales.

The development and implementation of a sales strategy involves solving the following issues:

selection of distribution channels;
justification of the optimal sales method;
selection of intermediaries and determination of an acceptable form of working with them;
service organization.

High efficiency of sales activities is ensured by the constant improvement and optimization of the entire technological chain, which is achieved through its unity and compliance with all cargo handling requirements, in which each previous operation is at the same time a preparation for the next. Especially great value here they have operations related to the preparation of goods for sale (their packaging, packing, assembling the necessary assortment, etc.). IN modern conditions These operations are carried out in large volumes at both wholesale and retail enterprises.

When justifying the optimal sales method, it is necessary to take into account that direct sales are considered profitable when:

the quantity of goods sold is large enough to justify the considerable costs of direct marketing;
the number of consumers is small and they are located in a relatively small area;
enterprises have a sufficient network of their own warehouses;
the product requires highly specialized service; the price fluctuates frequently;
the market is vertical (the product is used in several industries, but by a few consumers in each), etc.

In indirect sales, as noted above, enterprises use the services of intermediary wholesalers, sales agents, brokers, etc., whose involvement is justified if:

enterprises are not strong enough in financially;
entering a market that is poorly understood;
the market is horizontal (many consumers in each sector of the economy, which requires the creation of a powerful sales network);
the market is very scattered geographically, so that other forms are unprofitable;
You can significantly save on transportation costs by supplying large quantities of goods to a small number of wholesalers, etc.

The sales strategy also involves effective organization service, which involves maintaining inventory, an impeccable transportation system and the availability of rational storage areas.

Existing distribution channels involve the use of three main sales methods:

* direct, or immediate;

* indirect;

* combined, or mixed.

Direct or direct sales provides that the manufacturer of the product enters into direct relationships with its consumers and does not resort to the services of independent intermediaries.

Direct sales are common in the capital goods market; sales are typical for coal, oil, and machine tool companies that supply the main types of raw materials for the manufacturing industry.

As for the promotion of agricultural products, this method sales is quite widely used in the market in the form of the presence of company stores and trade pavilions in markets.

The advantage of the direct sales (sales) method is that the manufacturing enterprise can control the sales process and quickly respond to changing market needs. This sales method is appropriate in cases where the quantity of goods is large and consumers are concentrated in a limited area, when highly specialized service is required, when the product is unique in purpose, etc.

At indirect In the sales method, the manufacturer of goods uses the services of various types of independent intermediaries. In practice, this method makes it possible to maintain full control over trading operations and saves money on paying for the services of intermediaries, but it cannot be considered the most effective method. Research conducted abroad shows that the intermediary link in a company's sales activities, on the contrary, in most cases increases the efficiency of sales operations. This is due to the following reasons:

1) the high professionalism of intermediaries in the sales and commercial spheres makes it possible to accelerate cost recovery and turnover of funds through large-scale, universal and specialized operations, creates convenience for end consumers, etc.;

2) Intermediaries have an unrivaled ability to bring the product to the target market. The connections, experience, and specialization of intermediaries provide the company with much greater success than it could achieve alone, on its own;

3) many manufacturers lack experience in the market and do not have enough financial resources to carry out direct sales.

4) even if a manufacturer can afford to create its own sales channels, in many cases it is more profitable for it to increase capital investments in its core business (when the profitability of the latter is greater than the profitability of its own sales activities, etc.).

5) the use of intermediaries in some cases turns out to be the only possible method of sales due to established customs and traditions in the market, for example, at auctions and commodity exchanges, and also when due to political or legal norms Direct contact with consumers is not possible.

Combined or mixed sales- a method in which the manufacturer uses both direct and indirect sales.

The choice of one or another method of organizing a company’s sales activities depends on specific market conditions, sales and the strategy of the company itself. Often a company, especially a large one, prefers to work by combining all available types of distribution network organization.

Sales— supply of goods for the purpose of sale, sale by a company of products manufactured (purchased) by them. Sales is the process of a product entering the sphere of use; sales of products; delivery for the purpose of purchase and sale. Sales, to a greater extent, is a logistics operation, meaning the delivery of products to the buyer directly, or through sales intermediaries (suppliers of the buyer).

Sales assumes:

sales logistics;
building relationships with external sales network;
establishing relationships with sellers;
fulfillment of the supplier’s obligations regarding the delivery of products to the consumer.

Physical sales (physical distribution) - processing and execution of consumer orders and direct delivery of goods. Distribution is an integral element of marketing and sales, ensuring product availability to consumers in a timely and cost-effective manner. Sales is an integral part of the distribution process and includes all logistics operations associated with physical movement and storage finished products in commodity distribution structures.

Direct sales- delivery to the buyer, which does not imply the presence of intermediaries, since the sale of goods and sales operations are carried out directly and directly to consumers on the basis of direct contacts with them.

Indirect sales (not direct sales) involves the sale of goods through intermediaries. There are one, two and three-level sales channels, the task of which is the distribution and sale of goods.

Intensive sales- involvement in the process of selling goods a wide range of resellers who are able to provide additional services(organization of service, supply of spare parts and consumables, etc.);

Selective sales- use of a limited circle of resellers. Selective sales are characterized by direct sales.

Targeted sales- specialization, focus on supply and sale of goods to a certain circle of buyers. Whereas non-targeted sales are the supply of goods to a wide range of consumers (typical of the consumer goods market), as a rule, with the participation of intermediaries and the formation of a distribution sales channel.

Distribution sales channel(distribution channel, sales channel) - a partially ordered set of intermediary entities that carry out commodity flow from the source of generation (producer) to the destination (consumer). See definition of "distribution channel".

Sales logistics- the area of scientific research into system integration of functions implemented in the process of distributing material and accompanying (information, financial and service) flows between various consumers, i.e. in the process of selling goods, the main purpose of which is to ensure delivery necessary goods to the right place, at the right time, at the right cost.

Number of impressions: 57366

Sales is the most important function and stage in the activities of any enterprise producing any product. Regardless of the nature of the products produced, any manufacturing company deals with the sale of finished products. It is possible to produce useful and high-quality goods (food, cars, equipment, software, clothes), but if it is not possible to build effective sales channels products, it simply will not reach its target consumers. That is why so much attention is paid to sales, sales strategy and organization of distribution channels both in theory and in practical business. In this article we will look at sales channels in marketing.

Concept, characteristics and functions of the distribution channel

Sales channel in marketing(English " distribution channel") – a chain of physical and/or legal entities involved in the process of movement (through purchase and sale) from producer to consumer.

To put it as briefly as possible, then distribution channel– a chain of intermediaries (although it is worth noting that distribution channels completely without intermediaries are possible, and we will talk about them a little later).

The sales channel (or otherwise: sales channel, distribution channel, distribution channel) allows you to connect the manufacturer of products or services with their consumers, ensuring the flow of goods in one direction and cash to another. It turns out that the sales channel is a kind of bridge between the manufacturer and the buyer, a highway connecting them.

Example The distribution channel can be the following chain of participants: car plant (car manufacturer), car dealership (reseller, dealer) and car buyer (end consumer).

Important distribution channel characteristics in marketing – its length, width and levels:

length of the distribution channel - the number of links (intermediaries) in the distribution chain;
distribution channel width - the number of participants in the distribution process in each channel link (for example, if a company sells a product through 3 networks retail stores, then the width here will be equal to 3);
channel level channel level") is a separate intermediary in the distribution chain, participating in the process of distribution of goods from manufacturer to consumer.

In our example, there is only one intermediary (car dealership). Accordingly, the length of the sales channel will be equal to 1. The same as the width (since cars are sold through one car dealership). And the car dealership itself can be considered one level of the sales channel.

In addition, the nature of the interaction between the links of the distribution system, as well as the functions they perform, are no less important.

The following can be distinguished sales channel functions in marketing:

research – collection of market data;
stimulating – encouraging the purchase of products;
contact – creation and maintenance feedback with buyers;
negotiation room – establishing, agreeing and adjusting sales conditions (price, packaging, service);
organizational – ensuring the movement of goods (by and large: transportation, loading, storage);
financial – searching for financial resources to compensate for costs;
risky – accepting full responsibility for the operation of the channel.

As you can see, sales, in fact, plays a huge role in the work of almost any company. And now, having understood the concept and functions of a distribution channel, let’s move on to considering its varieties.

Types of distribution channels

Sales channels in marketing can be classified according to various criteria. But the most popular division of distribution channels according to number of intermediaries.

Main types of sales channels in marketing: direct and indirect

1. Direct sales channels– characterized by the absence of independent intermediaries. That is, the manufacturer independently and directly sells products to customers. He can do this in various ways:

through own (branded) stores;
peddling trade (for example, culinary products);
selling goods via the Internet.

Example: the publishing house has own network bookstores through which it sells books to its readers. Or furniture factory sells its products at retail from a warehouse. Or the manufacturer of production equipment provides direct deliveries to customer factories.

Since there are no intermediaries in the direct distribution channel, it is considered to be of zero length and is called a “zero-level channel.” Direct sales channels are used quite rarely. They are mainly used in the manufacturers' market.

2. Indirect (indirect) sales channels– one or more intermediaries take part in the distribution process.

Depending on the number of intermediaries (length), indirect sales channels are divided into a number of varieties:

single-level - with a single intermediary. For example, it could be a sales agent industrial equipment;
two-level - here we are already dealing with two intermediaries. An example is the consumer goods market (food, household chemicals, clothing), where often on the path of products from manufacturer to buyer there are two intermediaries, as an option: a wholesale warehouse and a retail supermarket;
three or more levels – by analogy, this is a distribution channel with 3 or more intermediaries. For example, for a three-level distribution channel, they could be a large wholesaler, a seller of smaller wholesale quantities of goods, and a chain of retail stores.

If there are 1-2 intermediaries in an indirect sales channel, it is called short. If there are more than 2 intermediaries, such a distribution channel is called long.

When it simultaneously uses both direct and indirect distribution channels, such a distribution system is called combined. And a separate article will be devoted to this topic. In the meantime, let's look at the pros and cons of direct and indirect distribution.

Both direct and indirect marketing channels have their advantages and disadvantages. A brief comparison table is presented in the figure. And then we will analyze everything in more detail, and start with direct channels.

Comparative table of direct and indirect sales (distribution) channels from a marketing point of view

Advantages of direct channels sales:

comprehensive control over the sales process, product quality and price;
you can make a big profit, since the intermediary markup is excluded from the price structure;
close contact with consumers (the manufacturer is better aware of their desires and preferences);
increasing the share of cash in;
it is easier to maintain an attractive company image and correctly position the product;
Buyers are often more willing to purchase products from their direct manufacturer.

Disadvantages of direct channels distributions:

market coverage and sales volumes are generally small;
the necessary substantial investments for the implementation of sales activities;
there is an accumulation of products awaiting sale in the enterprise’s warehouses (as a result, storage costs and the risk of spoilage increase);
the manufacturer is forced to independently market analysis, promote products and maintain a sales network, which requires additional resources and investments;
accounting for commodity and cash flows is complicated.

Indirect sales channels in marketing also have their pros and cons.

Benefits of Indirect Channels sales:

the manufacturer can have at its disposal an extensive sales network of an intermediary with wide market coverage, which will increase sales volumes and, as a result, profits;
there is an opportunity to quickly develop new markets;
the manufacturer is freed from the need to create his own warehouse and can focus directly on production;
sale of larger quantities of products is possible;
customer needs in terms of quantity, speed and service are more fully satisfied.

Disadvantages of indirect channels distribution:

the manufacturer loses direct contact with its consumers, the quality of feedback deteriorates, and it becomes more difficult to respond to changes in demand;
the manufacturer also loses control over, in some way, the quality of the product;
the percentage of profit decreases (since it is necessary to provide discounts to intermediaries, selling goods at a price below the market price);
the manufacturer may become heavily dependent on intermediaries.

Thus, on the one hand, selling your products through intermediaries allows you to better satisfy the needs of a larger circle of customers, but at the same time the manufacturer loses control over the price and the sales process.

On the other hand, selling goods by the enterprise itself without intermediaries is associated with great difficulties and high costs; it allows satisfying the needs of only a limited market segment, but the manufacturer understands its consumer better and can fully control the price and quality of the product.

As you can see, it is impossible to say definitively that indirect distribution channels are best or that direct distribution channels are bad. It all depends on the characteristics of the product, the specifics of the market, the capabilities of the manufacturer, the selected intermediaries, the sales strategy and many other factors. But it is clear that the choice of a distribution system should be approached as responsibly as possible.

Selection of sales channels

Choosing the most appropriate sales marketing system for a given enterprise and market is extremely important. The fact is that the peculiarity of distribution channels is such that once having made a choice in favor of one or another system of distribution of goods, in the future it will be extremely difficult for the manufacturer to change anything in it. Once goods begin moving through the distribution channel, it is very difficult, and often almost impossible, to influence them.

Myself distribution channel selection process marketing can be divided into 4 stages:

Determining the company's sales strategy.
Finding suitable distribution channels.
Analysis and assessment of possible distribution channels.
Selecting partners and resellers.

When choosing a distribution channel, you should consider and analyze complex of factors:

characteristics of the product and the breadth of its range;
transportability of products, conditions and terms of their storage;
geographical location of the manufacturer;
level of profitability of the distribution channel;
specifics of the target market;
degree of distribution channel compliance target segment consumers;
the ability of the enterprise to control the distribution process;
level of competition in the selected market;
projected market share, sales volumes and profit levels;
minimally necessary costs monetary and other resources for organizing sales;
opportunities to expand sales markets.

In addition, analysis of alternative distribution channels is often used based on complex from 3 groups of criteria:

Economic forces– level of possible sales, projected expenses;
Control factors – period of delivery of goods to the consumer, sales promotion system;
Adaptive factors– the time required to connect the channel to the enterprise’s distribution system, the level of its flexibility and ability to adapt to changes in the market environment.

In international economic practice, this set of criteria is called “ 3C» sales, according to the first letters of the names of the main criteria: “Cost” - costs or expenses, “Control” - control, “Coverage” - market coverage.

In addition, there is an expanded approach to the selection of sales channels in marketing, called “ 6C" Here, to the three above “C”, three more are added: “Capital” - capital (investments required to create a sales channel), “Character” - features of the channel (its properties, degree of compliance with the target market), “Continuity” - stability ( financial stability reseller, his focus on long-term partnership).

Which sales channel shows the best results based on the analyzed set of factors is selected.

Resume

Let's summarize the entire article and briefly list the main points.

Sales plays an important role in the activities of any enterprise, along with purchasing, production and other functions. Sales of finished products are carried out through sales channels (sales, distribution, distribution).

Sales channel– a chain of intermediaries along the route of goods from producer to consumer.

Each distribution channel is characterized length(number of links in the channel), width(number of participants in each link) and levels(each individual intermediary).

There are 2 main types of distribution channels in marketing: straight– sales are carried out without intermediaries, directly from the manufacturer to the final buyer; indirect– through intermediaries (a distribution channel with 1 intermediary is called single-level, with 2 - two-level, etc.). In addition, with the simultaneous use of both direct and indirect distribution channels, they speak of combined sales.

Particular attention should be paid to choosing a distribution channel (taking into account the characteristics of the intermediary, costs, the nature of the market and other factors), since it will not be easy to change it later.

Galyautdinov R.R.