Glossary entry

Chinese term or phrase:

渠道下沉

English translation:

distribution chain moving down closer to consumer

Added to glossary by William Lee (@Li Zhiqiang)
May 26, 2009 16:47
14 yrs ago
3 viewers *
Chinese term

渠道下沉

Chinese to English Bus/Financial Finance (general)
TIA

Discussion

William Lee (@Li Zhiqiang) (asker) May 26, 2009:
The following is the context (sales channels) 渠道下沉被认为是衡量营销深度的标准,许多销售总监面对销售业绩下滑都会想到或高举渠道下沉这把刀。那么渠道下沉是什么?一个典型的演进模式,销售总部-大区销售中心-省区城市直营体-地(县)级城市协销体……这是过去几年,我们普遍看到多数大企业为快速抢滩市场采取的渠道下沉模式。
Adsion Liu May 26, 2009:
Context This is not popular or regulated Chinese, so plz provide more context for helpful answers...

Proposed translations

8 hrs
Selected

distribution chain moving down closer to consumer

销售渠道 - sales channel; distribution channel
衡量营销深度- scope or reach of distribution

渠道下沉 - distribution chain moving down closer to consumer

The Distribution Channel consists of a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.
http://www.smallbusiness.com/wiki/Distribution_channel

Previously, company only deals with their few big dealers, it is up to the dealers to distribute the products to retails (secondary markets) or even tertiary markets. Nowadays, they create sales team down to the end of the distribution chain (end-user). You may see they also hire direct sales representatives selling their products at supermarket stands.
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4 KudoZ points awarded for this answer. Comment: "Thanks."
14 hrs

mass distribution coverage

I think it'd be hard to find one English term to match this "all-inclusive" Chinese term, but from what I gather, this kind of distribution channel coverage is probably closest to the "mass distribution coverage" described as follows.
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As we will see the marketer must take into consideration many factors when choosing the right level of distribution coverage. However, all marketers should understand that distribution creates costs to the organization. Some of these expenses can be passed along to customers (e.g., shipping costs) but others cannot (e.g., need for additional salespeople to handle more distributors). Thus, the process for determining the right level of distribution coverage often comes down to an analysis of the benefits (e.g., more sales) versus the cost associated with gain the benefits.

There are three main levels of distribution coverage - mass coverage, selective and exclusive.

* Mass Coverage - The mass coverage (also known as intensive distribution) strategy attempts to distribute products widely in nearly all locations in which that type of product is sold. This level of distribution is only feasible for relatively low priced products that appeal to very large target markets (e.g., see consumer convenience products). A product such as Coca-Cola is a classic example since it is available in a wide variety of locations including grocery stores, convenience stores, vending machines, hotels and many, many more. With such a large number of locations selling the product the cost of distribution is extremely high and must be offset with very high sales volume.
* Selective Coverage - Under selective coverage the marketer deliberately seeks to limit the locations in which this type of product is sold. To the non-marketer it may seem strange for a marketer to not want to distribute their product in every possible location. However, the logic of this strategy is tied to the size and nature of the product’s target market. Products with selective coverage appeal to smaller, more focused target markets (e.g., see consumer shopping products) compared to the size of target markets for mass marketed products. Consequently, because the market size is smaller, the number of locations needed to support the distribution of the product is fewer.
* Exclusive Coverage - Some high-end products target very narrow markets that have a relatively small number of customers. These customers are often characterized as “discriminating” in their taste for products and seek to satisfy some of their needs with high-quality, though expensive products. Additionally, many buyers of high-end products require a high level of customer service from the channel member from whom they purchase. These characteristics of the target market may lead the marketer to sell their products through a very select or exclusive group of resellers. Another type of exclusive distribution may not involve high-end products but rather products only available in selected locations such as company-owned stores. While these products may or may not be higher priced compared to competitive products, the fact these are only available in company outlets give exclusivity to the distribution.
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