In recent years, with the continuous heating up of research on marketing channels in China, marketing management theory has achieved unprecedented development, and the business community has also attached great importance to and applied it. However, most articles mainly focus on the behavior of marketing channels to analyze the problem of reasonable resource allocation between the market and enterprises. This article analyzes the impact of product marketing factors on the structure of marketing channels to explain the relationship between enterprises and the market, as well as the reasonable allocation of marketing channel structures adopted by different enterprises in different periods. It also proposes the current and future direction of marketing channels and their management development.

1、 The purpose, ideas, and methods of the research

With China's rapid integration into the world's competitive market within the WTO framework, the importance of marketing channels is becoming increasingly apparent in the process of increasing competition among enterprises to obtain end consumers. However, there is still no established theory on how to build and manage marketing channels under the concept of green marketing. The author hopes to provide a new perspective for enterprises facing difficulties in managing marketing channels through the perspective of this article to analyze and solve practical problems, so that a reasonable marketing channel structure can better support the development strategy of enterprises by improving the operational efficiency of marketing channels. It is also hoped that domestic pump enterprises can enhance their competitiveness in the world market.

The author defines the marketing channel structure and the factors that make up the marketing channel structure, combined with the analysis of the characteristics of pump applications, to explain the current setting strategies of marketing channel structures for different pump enterprises and the direction of establishing marketing channel management strategic concepts.

The author points out the drawbacks of marketing channels in China and the degree of service marketing channelization objectively required by end consumers through the analysis of the current situation of channels. Starting from meeting the needs of competitive customers as much as possible and improving the marginal benefits (or reducing marginal costs) of channels, combined with practical needs, the author proposes personal strategies for setting up pump industry channels.

2、 Overview of Marketing Channel Structure and Consumer Status in the Domestic Pump Industry

In recent years, due to the repeated construction of low-end product production facilities in the pump industry, the economic scale and development of various enterprises have been extremely uneven, and the level of marketing channel structure is uneven, mainly manifested in the following three aspects: 1. Workshop style, low price market strategy enterprises implement complete agency system for marketing channel members and are unstable, hoping to survive, and normal profits are also seized by intermediaries without agent control, belonging to a scattered marketing model. There are no less than 10 workshop style enterprises producing slurry pump accessories in the Shijiazhuang area, and there is also a trend of spread. 2. The composition and complexity of the marketing channel structure of mid-range economy scale enterprises: the basic implementation of intermediary, branch, and subsidiary member models are mixed together, resulting in chaotic market management, and even competition among different marketing channels and internal members on the same platform. 3. The marketing channel structure of larger enterprises is unstable, constantly changing the marketing channel structure, and bringing certain operational risks to the enterprise strategy. For example, the original Changsha Water Pump Factory went through several stages such as establishing an office and renovating a subsidiary, but ultimately lost control of its marketing channels and lost its market, heading towards the path of being merged by Tongda Group.

In short, the construction of marketing channels for domestic enterprises mainly lacks correct core concepts, which cannot organically combine the development direction of enterprise strategy and market.

The consumer psychology of the beneficiaries who benefit the most from competition has undergone the following changes: 1. Improving their own capital utilization and becoming more enthusiastic about manufacturers providing JIT (just in time) services, especially in joint ventures, such as the Antaibao Coal Washing Plant, which prioritizes providing timely slurry pump accessories and maintenance services during the equipment bidding stage. 2. In order to reduce various risks, they prefer to communicate directly with manufacturers through service channels. 3. Request to reduce equipment purchase investment and operating costs. According to statistics from Shijiazhuang Qiangqiang Pump Industry Group Co., Ltd., guided by consumer demand, the channelization of product and service marketing in enterprises will inevitably become a highlight of marketing channel management, and guide and promote the backward management of manufacturers' marketing channels. Therefore, a project team has been established to carry out market business operations.

3、 Elaborate on the Theory of Marketing Channel Structure

Marketing channels refer to entities or virtual organizations and individuals who acquire ownership of goods and services or help transfer ownership when a product or service moves from producers to consumers. Any organization or individual that can independently complete the transfer of ownership of products and services can become a marketing channel, classified according to their different characteristics as follows:

According to the degree of personnel and economic affiliation between manufacturers and sales teams, marketing channels can be classified as direct distribution channels and indirect distribution channels (the relationship between the two and other marketing factors is shown in Figure 1). Compared to indirect channels, the biggest advantage of direct sales channels is their high controllability, fast response to market demand, and lower marginal costs. However, during the period of rapid development of enterprises, the speed of market expansion is slower, and the one-time investment in construction costs is higher.

In general, due to the inconsistency of the main business objectives between intermediaries and manufacturers, the products operated by intermediaries are unstable. Therefore, intermediaries are unwilling to spend too much time and money learning complex professional product technologies, which hinders the strategic implementation of the enterprise during the rapid development period and is not conducive to the reform and implementation of relevant marketing channel policies. For example, more than 95% of the personnel authorized by Shijiazhuang Qiangqiang Pump Industry Group Co., Ltd. to operate intermediaries are unable to conduct independent technical negotiations on large-scale projects, and they are also unwilling to invest more time and money in participating in the enterprise's technical training, only hoping to obtain more product discounts.

According to the communication methods of marketing channels, it can be divided into online marketing (telephone and internet) and personnel marketing (the relationship between the two is shown in Figure 1). Compared to online marketing, personnel marketing has the advantage of "high contact" communication with users, that is, it can not only accurately and completely transmit explicit knowledge, but also frequently, deeply, and in a large number of different ways accelerate the transfer of implicit knowledge, eliminate misunderstandings caused by complex transactions between buyers and sellers, and improve the integrity of both parties. Online marketing can only spread explicit knowledge, and is powerless to implicit knowledge; Compared to personnel marketing, online marketing has the advantage of significantly reducing marketing costs, while personnel marketing incurs high costs due to extensive market maintenance and other work. Therefore, a reasonable combination of these two communication methods in the channel structure is an effective way to reduce marginal costs and improve marginal benefits.

The structure of marketing channels mainly consists of the following four factors: 1. The length of marketing channels refers to the number of links that property rights pass through in the circulation of marketing channels. The more stages a product goes through, the longer its length becomes, and the manufacturer's profitability decreases. At the same time, the corresponding information is prone to distortion. But it is conducive to unified policy management with the outside world. 2. The width of marketing channels refers to the number of types of marketing channels formed by the combination of the body and length of two classifications generated by communication methods. Different target markets require different channels to meet different consumer groups; The body mainly consists of four forms: online marketing and personnel marketing, as shown in Table 1. Overwidth can easily lead to pathological conflicts between channels. 3. Marketing channel density: refers to the average number of customer representatives and product sales ratio in contact with end consumers in the same marketing channel. The higher the density, the more conducive it is to improving customer service satisfaction, facilitating continuous and sufficient communication between buyers and sellers, and vice versa. At the same time, it is also easy to cause pathological conflicts within marketing channels. 4. Marketing channel control refers to the degree to which manufacturers control marketing channel members; The higher the degree of control, the more conducive it is to the reform and management of marketing channels, but the burden of management work increases. The above four factors interact and support each other.

A reasonable marketing channel structure can support the rapid and successful diffusion of new products to the target market. 2. Obtaining excess market economy profits is beneficial for enterprises to gain competitive advantages. 4. Beneficial for building flexible channels, and conducive to the correct and smooth implementation of enterprise strategies.

Types of body composition (Table 1)

Network marketing personnel marketing

Online marketing is purely based on personnel and supplemented by the internet

Personnel marketing as the main network and personnel as auxiliary pure personnel marketing

4、 Analysis of the marketing application characteristics of pumps

Due to the driving force of the pump in the production system, technical selection is particularly important. In order to achieve the reliability and integrity of the overall system, it is objectively required that the engineering factors such as the matching motor, pipeline, conveying medium, and pipeline installation terrain be organically combined, which requires the complexity of the business process. So it needs to consider the following factors in the marketing process:

There is a lot of implicit knowledge that needs to be transmitted in terms of technology. Due to the fact that pumps require a large amount of technical service communication from procurement and sales personnel during project initiation, tracking, ordering, execution, and other stages in the application process, some market experience knowledge is difficult to describe clearly in words. These implicit knowledge can only be effectively achieved through face-to-face communication. For example, the selection of slurry pump: the main factors should be considered to understand the characteristics of the pipeline, such as resistance coefficient and other characteristics; The characteristics of the conveying medium, such as specific gravity, viscosity, etc; The characteristics of the motor, such as protection level, etc; The characteristics of the equipment, such as efficiency, installation method, material, etc., involve a large amount of theoretical and on-site experience knowledge from different disciplines and levels throughout the selection process. Even in enterprises, it takes at least 2.5 years to cultivate a qualified pump selection application technician. In this situation, in order to meet the needs of users for JIT services, manufacturers are objectively required to provide a high contact marketing channel.

2. There are significant differences in product technology. When the production process is determined, the selection results are almost limited. Due to the significant differences in products among different manufacturers and the absence of other substitutes, it is required that the selection technicians provide a suitable model from hundreds or even thousands of specifications, almost reaching the level of tailoring requirements; Due to the strict and complex technical services required by users and the exclusivity of products, as well as the inconsistent business goals of intermediaries and manufacturers who are unwilling to increase costs to strengthen their technical capabilities, it is objectively required that manufacturers and end consumers have sufficient contact, and the shorter the communication and channel links, the better.

3. Trading business risks. In the entire marketing process, pump products have the characteristic of high transaction volume compared to daily necessities. Whether the actual performance and design performance of the equipment are consistent has become one of the most concerned factors for users, and they bear a great investment risk. At the same time, the manufacturer also bears the risk of payment recovery. In order to reduce their own risk, both parties objectively require that the fewer links in product circulation, the better, and can better increase the credibility of both parties.

4. Transaction negotiation. In the entire process of marketing general machinery products, in order to ensure the balance of interests between both parties, coupled with product technology limitations and corresponding business and legal restrictions, continuous communication is required between both parties. From project tracking to product delivery and use acceptance, it usually takes no less than 1.5 years. Objectively, it is required that manufacturers and end consumers have high integrity and accurate and timely information communication between both parties, in order to ensure the JIT of user equipment technology and timely collection of payment.

From the above analysis, it is not difficult to find that in the marketing and application process of pumps, customers and manufacturers need to have a lot of contact in order to fully communicate and establish mutual integrity.

5、 The impact of pump product application factors on marketing channel structure

In order to achieve their strategic business goals, the management of marketing channel structure has become the top priority of market strategy for enterprises, and product is one of the most critical factors affecting marketing channel structure. We will analyze the relationship between the two from the following four points using Figure 1.

A. Analysis of marketing channel length:

From the analysis of the above technical aspects and business application factors, it can be concluded that the pump product should complete the following functions: 1. High contact marketing channel communication 2. Reduce the risks of both buyers and sellers 3. High dependence on marketing channels. Therefore, it is objectively required that mature enterprises have a marketing channel structure: 1. Adopt personnel marketing as much as possible. 2. The marketing channel length should be as short as possible, that is, the optimal state is zero order channel (B2B). This is beneficial for improving the efficiency and professional added value of marketing channels (as shown in Figure 1), while also meeting the psychological preferences of consumers, in order to enhance terminal loyalty.

B. Analysis of Marketing Channel Width

In the entire product marketing process, both parties need to communicate a large amount of explicit and implicit knowledge. A reasonable width can effectively avoid conflicts between channels and explore and occupy different levels of target markets through effective communication, effectively improving the marginal benefits of marketing and enjoying the enterprise's economies of scale by increasing sales.

From the perspective of the organization that makes up the width of marketing channels, it is more appropriate for mature enterprises to adopt "personnel marketing as the main approach, supplemented by online marketing" based on the current market situation. Personnel marketing mainly involves communication of implicit knowledge, such as product selection and on-site troubleshooting. Online marketing mainly involves communication of explicit knowledge, such as product introduction, scope of use, paperless office, etc. This not only achieves sufficient communication between buyers and sellers, but also reduces marginal costs. At the same time, it provides the possibility for end consumers to enjoy transfer value.

From the perspective of the links that make up the width of marketing channels, the fewer links a product has in the channel circulation, objectively speaking, the more beneficial it is: 1. Reducing transaction risks between both parties; 2. Ensuring the authenticity of product technology selection results. 3. Increase the profits and other advantages of manufacturers to fully leverage the advantages of short channels.

In short, a reasonable channel width is beneficial for improving the operational efficiency and control of marketing channels.

C. Analysis of marketing channel density

Due to the concentration of pump end consumers and relatively low market elasticity compared to daily consumer goods, professional fixed personnel are needed to provide application technology and sales services for a long time. In general, the more sales representatives there are in each target market, the better it is to improve the JIT service and quality of users. However, at the same time, the corresponding costs also increase. Due to the different densities of target markets, it is possible to increase pathological conflicts between marketing channels in order to compete for limited high-quality customer resources. So a reasonable allocation of terminal resources and marketing channel density is also one of the main factors in reducing unnecessary marketing expenses.

D. Analysis of Marketing Channel Control

Patricia? B? Hilbert once said, "Whoever controls the marketing channel controls the consumer end." Because "your current or potential customer relationships and customer support will determine the value of your company," this indicates that channels are intangible to the enterprise and can bring excess profits to the enterprise. As shown in Figure 1, from the perspective of the transaction process, high control can reduce the human risk of bad debts in payment collection, reduce the risk of human collusion, achieve good JIT services, align the business goals of the sales team and manufacturers, and better grasp the changes in end-user needs by executing "doing the right thing". Shijiazhuang Qiangqiang Pump Industry Group Co., Ltd. lost absolute control over end users due to the establishment of subsidiaries and distributors, resulting in the loss of a large market for slurry pump accessories during the turbulent period of enterprise restructuring; Losing control over profits leads to profit circulation and loss, greatly reducing the speed of enterprise development.

Through the analysis of the above content, it is found that to improve the operational efficiency of marketing channels in the existing market environment, 1. Network marketing and personnel marketing should be reasonably matched according to the actual situation of different development periods of the enterprise. 2. As the enterprise continues to develop, try to shorten the length of the channel. 3. Choose the width of the channel based on the number of target markets. 4. Choose the density of marketing channels based on the size of the target market's business volume. 5. Control the control of the sales team based on the importance of the channel to the enterprise, such as setting up local agents or appointing distributors.

In short, different enterprises need to reasonably control various factors in the marketing channel structure during different business strategy periods to reduce the marginal cost of marketing or improve marginal benefits, in order to solve market bottlenecks in enterprise strategic development. And make achieving the overall strategy of the enterprise the sole management objective.

6、 Prediction and Outlook of Marketing Channel Management Direction

In the increasingly competitive future, as a bridge connecting enterprises and the market, the function of marketing channels will change with changes in the market environment. Generally, channel management should meet the following characteristics:

Firstly, customer centricity. Marketing work without end users is like a tree without roots and water without a source, because end customers support the value of the enterprise.

Secondly, efficient marketing channels. Compared to competitors, marketing has lower marginal costs or higher marginal benefits, which can provide customers with more transferable value.

Thirdly, flexible marketing channels. In order to better serve the strategic needs of enterprises, marketing channels aim to cultivate their own immunity and continuously adapt to and utilize changes in the market environment.

In summary, the above three principles will be the basis for future marketing channel structure reform.

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