UNIT 7

1. UNIT 7 Distribution Strategy 渠道策略

2. Section I Special Terms 1 Section II Text Study 2 Section III Situational Dialogues 3 Section IV Tasks 4 Contents

3. Section I Special Terms Channel of Distribution It refers to an organized network (system) of agencies and institutions which, in combination, perform all the functions required to link producers with end customers to accomplish the marketing task. 分销渠道 分销渠道是指促使某种产品和服务顺利经由市场交换过程，由制造商或服务提供者转移给消费者(最终用户)消费使用从而完成营销任务的一整套相互依存的组织。

4. Section II Text Study Pre-reading questions • What is channel of distribution? 2. Where do you buy a pen? 3. Can you list some types of intermediaries?

5. Section II Text Study Text A Channel of Distribution Choosing the right channel of distribution is very important in getting the product from the manufacturer to the end customers. Although many firms advertise that they save the consumer money by selling directly and “eliminating the middleman”, this is not a good claim. The truth is that intermediaries tend to add efficiency because they can do specialized tasks better than the manufacturer. Because wholesalers and retailers exist, the consumer can buy one pen at a time in a store located conveniently rather than having to order it from a distant factory. There are many types of intermediaries such as:

6. Section II Text Study 1. Wholesalers. They buy from producers and resell to retailers. They take ownership or “title” to goods. Wholesalers will often take on some of the marketing responsibilities. Many produce their own brochures and use their own sales channels. 2. Agents. An agent will typically secure an order for a producer and will take a commission. They do not tend to take “title” to the goods. This means that capital is not tied up in goods. 3. Retailers. Retailers will have a much stronger personal relationship with the consumers. Consumers will expect to be exposed to many brands and products. The retailer will decide the final selling price of the product. 4. Internet. The Internet has a geographically dispersedmarket. The main benefit of the Internet is that small products reach a wider audience. There are low barriers to entry as set-up costs are low.

7. Section II Text Study The channels of distribution vary somewhat by the nature of the product. Automobiles, because they are difficult to move, are shipped directly to a dealer. Other products are shipped through a wholesaler who can more efficiently handle, and combine products from many different suppliers. For convenience products such as soft drinks, it is essential that the product be widely available.

8. Section II Text Study New Words and Expressions disperse channel eliminate vt. 排除，消除 v. (使) 分散 n. 渠道 resell barrier middleman dealer vt. 转售 n. ( 阻碍通道的) 障碍物，屏障 n. 中间人 n. 经销商，商人 geographically essential combine adv. 地理上 adj. 实质的，基本的 v. ( 使) 联合，( 使) 结合

9. Section II Text Study Exercise 1 Decide whether the statements are true (T) or false (F) according to the above text. 1. The intermediaries add efficiency due to their professional service. [ T ] [ ] • Consumers prefer to order a pen directly from a producer. F • An agent does tend to take “title” to the goods. [ F ] • Retailers usually decide the final selling price to the product. [ ] T [ F ] • There are high barriers to do business online.

10. Section II Text Study Exercise 2 Match the words in the table below with their correct Chinese equivalents. claim efficiency distant geographically somewhat commission set up handle 佣金 设立 主张 效率 地理上 远的 稍微 处理

11. Section II Text Study Exercise 3 Fill in the blanks with the appropriate form of the words in brackets. We must consider which sales channel is realistically available to each company. A small manufacturer of potato chips would like to sell its goods to grocery stores (national), but logistics might be a tough problem (solve). Then, it may consider targeting some chain supermarkets (local). nationally to solve locally

12. Section II Text Study Text B Amway’s Sales Channel Amway, a widely known producer and seller of daily necessities, operates its business in over 100 countries and regions. Direct selling has been regarded as the most effective sales channel for many years. However in China, Amway pursues a new business model called “shop+salesman”. The advantages of this channel can be summed up as follows: 1) A guarantee of high quality. Consumers are confident of buying the true products in Amway chain shops, not the fake (假的) products from other companies.

13. Section II Text Study 2) A good corporate image. Most consumers appreciate the attractive image of Amway shops. The shops not only provide logistic service to sales, but also give confidence to the consumers and the public. 3) A transparent environment for sourcing and shopping. This channel can avoid over-charging (加价). In addition, salesmen make up for the lack of shops. Consumers are able to enjoy more advanced services. They can buy Amway’s products from the salesmen anywhere and at anytime.

14. Section II Text Study Exercise 4 Decide whether the statements are true (T) or false (F) according to the above text. 1. Direct selling has been used for a long time by Amway. [ T ] 2. Consumers have only one channel to buy Amway’s products. [ ] F 3. The business model of “shop+salesman” was successful in China. [ T ]

15. Section III Situational Dialogues Dialogue 1 Factors Affecting Distribution Jack is talking about distribution with his teacher, Mike. Jack:Good morning, Mike. I am thinking about distribution. What are the most important factors to consider? Mike: Product, market, enterprise, policy, economic benefit and characteristics of intermediaries (中间商). Jack: What is the product factor? Mike: Price, volume (数量), weight and technology. Jack: What is the market factor? Mike: Market factors include quantity of order, distribution of consumers, size (规模) of potential customers, and buying habits (购买习惯) of consumers.

16. Section III Situational Dialogues Jack: And the enterprise factor? Mike: The enterprise factors mainly mean production capability, sale, service and delivery of product. Jack:Do policy and regulation affect distribution? Mike: Certainly they do. It is very important for firms to master the relevant policies and regulations. Jack: An intermediary acts as a bridge between producers and consumers. Mike: You’ve got it. Jack:Economic benefit is the ultimate aim when firms consider distribution. Mike: Definitely. Benefit is always the focus.

17. Section III Situational Dialogues Dialogue 2 Where did you buy your car? Robbie has just bought a new car. His colleague, Maxwell is talking with him about it. Maxwell: Your car is really nice, Robbie. Where did you buy it? Robbie: I bought it at a “4S” car shop. Maxwell: “4S”? What does it stand for? Robbie: It is a chain shop ( 连锁店), selling only one brand of car. “4S” stands for sales ( 销售),services ( 维修), spare parts ( 配件) and surveys ( 信息反馈). Maxwell:But many customers buy cars in car markets. Is there any difference between a car market and a “4S” car shop? Robbie:Yes. You may choose other brands of car in most of the car markets, but only one brand at a “4S” car shop.

18. Section III Situational Dialogues Maxwell: I see. So why do you prefer to buy a car at a “4S” car shop? Robbie : I think a “4S” car shop is more professional (专业的). I trust the quality and service there. Maxwell: Can you buy cars in any other way? Robbie : A car agent (代理商) is also a popular choice. Maxwell: So people can buy cars through these channels anywhere in China. Robbie : I am afraid not. “4S” car shops and agency shops are mainly in big cities in the coastal areas (沿海地区) while car markets are more commonly seen in the central and western cities. Maxwell: I see. Thank you!

19. Section III Situational Dialogues Exercise 5 Answer the following questions according to the dialogues. 1. What is the market factor? Market factors include quantity of order, distribution of consumers, size of potential customers, and buying habits of consumers. 2. Which factor is so important that a company care about most while considering distribution? Economic benefit is the ultimate aim when firms consider distribution.

20. Section III Situational Dialogues Exercise 5 Answer the following questions according to the dialogues. 3. Where did Robbie buy his car? A “4S” car shop. 4. Can you buy different brands of car at a “4S” car shop? No, only one brand of car is sold at a “4S” car shop. 5. Why did Robbie buy his car at a “4S” car shop? He thought a “4S” car shop was more professional. He trusted the quality and service there.

21. Section III Situational Dialogues Exercise 6 Group discussion Invite some of your classmates to join with you. Discuss the selling of cars. Then make a presentation to the rest of the class. List the characteristics of different sales channels for cars. Characteristics Location “4S” car shop Car agent Car market only one brand, more professional mainly in big cities of coastal areas sell one brand or several brands of cars mainly in big cities of coastal areas sell different brands of cars in the central and western cities

22. Section III Situational Dialogues Marketing Skills How to sell your products? 如何销售你的产品？ 对于大多数的工厂而言，都希望把产品直接卖给最终的消费者，因为这 种方式能保障所获得的利润较为丰厚。但企业本身开拓市场的资源有限，不可 能在每个市场上面面俱到，必须依靠其他合作伙伴来实现其产品的广泛推广。 假设你开了一间服装企业，如何建立你的服装销售渠道呢？不妨考虑一下以下 的做法： 1) I prefer to set up some chain stores to sell our clothes. 2) I will sell most of our clothes to wholesalers. 3) I will sell our clothes online.

23. Section IV Tasks Exercise 7 Choose the proper words to complete the expressions. market product profits policy enterprise itself intermediaries production 不同的产品由于它们的特性不同而采用不同的分销渠道。市场营销人员应当清楚地掌握影响分销渠道的因素—— 1) 商品的特性 The characteristics of a 2) 企业自身的状况 The condition of an 3) 生产的情况 The situation of 4) 市场的状况 The situation of a product enterprise itself production market

24. Section IV Tasks policy 5) 政策规定 The regulation of 6) 利润情况 The condition of 7) 中间商状况 The characteristics of profits intermediaries

25. Section IV Tasks Exercise 8 Fill in the blanks with the words and phrases given below. rate meet in good condition for rent Renting a Car Li Ming enters a car leasing company (租车公司) to rent a car. Receptionist: Good morning, Sir. Li Ming: Good morning, Miss. Do you have any cars 1)? Receptionist: Sure. Which brand of car would you like? Li Ming: I want to 2) a VIP (贵宾) so a high-class brand should be better. Receptionist: I see. What about a Crown? Li Ming: What is the 3)? for rent meet rate

26. Section IV Tasks Receptionist: 1,000 RMB per day. Li Ming: That’s a little bit high. Do you have other types? Receptionist: Yes. What about ACCORD? 800 RMB per day. Li Ming: Does it have a limited mileage (英里数)? Receptionist: No. Li Ming: Do you only accept cash? Receptionist: Oh, no. You can pay by cash or credit card. Li Ming: May I see the car now? I want to make sure it is 4) (车况良好). Receptionist: The car is parked outside. Please follow me. Li Ming: Thank you very much! in good conditions

27. Section IV Tasks Exercise 9 List some distribution ways for TV, then support your point. I will sell TVs through the following ways: The electronic appliance chain shop. This is a professional shop selling TV and other home electronic appliances. People like to choose electronic goods there. Their sales volume is very large. Franchised shop. It is safe to buy a TV there. The quality and after-sales service is guaranteed.

28. Section IV Tasks Department store. This is a comfortable shopping place because it has a nice shopping environment. 3. 4. Supermarket. It is convenient to buy goods especially for people living nearby.

29. Section IV Tasks 分销渠道策略 企业的分销渠道可以分为直接渠道和间接渠道两大类。 直接渠道是指产品 (或服务)直接由其制造商 (或服务提供者)销售给最终消费者，没有中间商的参与。直接渠道也是最短的渠道，是产业用品的主要渠道。 与直接渠道相对应的是间接渠道，间接渠道是指制造商和服务提供者借助中间商将自身的产品或服务销售给最终消费者。企业通常借助的中间商类型有：信托机构、代理商、经销商和经纪商。 企业选择分销渠道必须充分考虑以下因素：顾客特性、产品特性、中间商特性、竞争特性、企业特性和环境特性。

30. The End !