We are engaged in custom hologram sticker printing, security stamping label and packing label printing nearly 20 years.

Why are corporate products being sold?

by:LG Printing     2021-03-22
Fleeing goods is a problem encountered in the development of every company. The dealers’ regional awareness of operating for their own profit seriously affects the balance of market prices and malicious internal products and promotional products outside the jurisdiction. Dealers, commonly used The method is that the promotion is compared to the price set by the main manufacturer, compared to the non-jurisdictional salesman. The harm caused by malignant products to the enterprise is huge. It disrupts the price system of all sales networks of the enterprise, easily triggers price wars, and reduces channel profits; dealers lose confidence in the product and lose their initiative, leading to abandoning the sales of the enterprise's products; Confusing prices will lose the trust and support of corporate products and brand consumers.

  The frequent development of malicious merchandising incidents is mainly due to the following reasons:

  (1) Personal rationality

   Due to the role of personal rationality, the inconsistency of goals between manufacturers and marketing channel members and the competition between marketing channel members are becoming more and more fierce. Companies should have long-term interests. They need to use the low-price policy of vehicles to grasp the growth of the market, and the tendency of marketing channel members to win relatively with higher short-term interest rates. The deceased company realizes the smooth sales of products and takes into account the reduction of marketing channel members. , The reduction in the retail price of the terminal, which reduces the transaction costs between manufacturers, fulfills the contract, and the contract, occupies most of the market. From the point of view of marketing channel members, companies can advance marketing channel members in advance, in addition to the pressure of external small-scale channels. Event’s low-priced commodity is a way to obtain short-term benefits. At the same time rationally, under the control of personal consciousness, each member of the marketing channel has more desires to sell products at a lower cost than those under other jurisdictions.

  (2) Channel is not smooth

  According to the definition of information theory, the source and channel of a letter are the three conditions required to convey the recipient’s message. The source, the starting point of its communication, is the source of news; the channel is the channel for information transmission. The recipient (the sink) is the sending and receiving of information, the purpose of communication and the conclusion of news. Here, the low-price product behavior sources of vicious events of marketing channel members, certified product manufacturers recognized by members and viewers of other channels (trust hotels). From the information source relay to the information sink process, as well as the support of effective operation channels such as timely communication, smooth communication, and simple and rapid identification. Although there are many members in the channel, no behavior was found that the shadow of the channel was used to cause vicious commotion.

  (4) Lax punishments

   In reality, in some vicious incidents between companies and channel members, there are no systems and rules to punish low-priced commodity behavior. In vicious incidents, such behavior is unfounded and nothing can be stopped. Although a system has been established between some manufacturing companies and channel members, when a problem occurs, the channel members are not punished at the end of the war due to the lack of attention by the manufacturing company or consciousness, or the aura of the member. The inevitable vicious circle, taking advantage of the situation when the controversy occurs, the result is difficult to control.

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