Research On The Distribution Channel Of Network Safety Products

There is a lack of specialized distribution channel in the market of network safety products. With the constant subdivision of the products, such functions as demand analysis, configuration checking, scheme making, installing debug, after-sale training and operation maintenance, can't be finished by the producer alone. The distribution channel must undertake some of the whole job. A rational network safety distribution channel which covers and contacts more customers will satisfy the market's demand of the network safety product. This paper will be divided into three parts and tentatively probe into some problems regarding the distribution channel of network safety product in China. Chapter I: Network safety products and its distribution Channel. Network safety products are the products used to protect the user's data and resource in computer from being attacked in an open Internet network. It has already been an important trend in the network safety products market that the distribution channel changes from single network safety product into network safety integrated solution. The network safety products include anti-virus software, firewall, invading detecting system, virtual private network, CA authentication administrative system etc. Among them, the firewall accounts for a large proportion. The characteristic of the network safety products has an important influence on their distribution channels. The characteristic of product digitization requires the distributor to possess relevant technology, channel exploration and the ability to support downstream channel as well; The characteristic of the high cost and price forces the producer to sell to its customers directly when the network safety products come into market; High technological complexity determines that the products are sold in the form of solution; The difference in customer's demand and orientation determines the difference of the product distribution way. Distribution channel of the network safety products refers to all the commercial organizations and individuals, through which the network safety products are transferred from the producer to the end-user. The commercial organizations and individuals obtained some ownership or help to transfer the ownership in the process. It is the latter half part of the network safety products'supply chain. The starting point of the products'distribution channel of network safety products is producer and the terminal point is customers or users. The type of intermediate traders includes the general agent, regional agent, industrial SI, product distributor and all level retailers. The basic function of the distribution channel of network safety products is to realize the transfer from the manufacturer to the users of products. It has nine functions in detail such as: information function, promotion function, negotiating function, ordering function, financing function, risk function, logistics function, payment function and product-flow function. Chapter II: Designing of the network safety product's distribution channel The essence of the network safety product's distribution is to provide a kind of service to customers. So, the designing of the network safety products'distribution channel should start from the analysis of user's service demand for distribution channel. The user's service demand for distribution channel mainly reflects in four aspects: the number of distribution points, the kinds of products, the speed of supplying and quantity of service. The integration of the four aspects mentioned above has formed the service level of the network safety product's distribution channel. The manufacturer of the network safety product must consider severalinfluential factors when determining the service level and design of the distribution channel: The market scale of network safety product does affect the diversification and specialization of the distribution channel; Distribution cost consists of the absolute value cost, selling cost of the products, cost of offering technology and service; Product characteristic determines the choice of distribution channel; Degree of channel control influences the marketing of its product to a great extent; Channel flexibility requires the manufacturers to set up a multiple marketing channel. According to the demands and influential factors mentioned above, the main content of the distribution channel design of network safety product includes three aspects: Determination of channel mode, namely called length of distribution channel; Determination of intermediate trader number, namely called width of the distribution channel; Stipulation of all channel-numbers'right and duty. After the optional designs of the distribution channel are finished, the manufacturers of network safety product will assess them and select a right one which can benefit the realizing of the enterprise's long-term goal. The accessing job will go on according three aspects such as the economic benefits of the channel, the control of the channel, the adaptability of the channel. Chapter III: Problems and improving suggestions of the network safety product's distribution channel in China At present, there are a lot of problems to be solved urgently in the distribution channel of network safety product in China. One of the outstanding problems is the conflict of the channels. It refers to the contradiction of business specialization and interests among the channel numbers. The channel conflict includes the horizontal conflict and vertical conflict. The channel conflict arises from the asymmetric concepts betweenthe channel members and manufacturer. On one hand, the manufacturer wants to maintain the overall interests of market in order to obtain permanent market chance and more market space, but the channel members maybe pursue the maximization of temporary interest. On the other hand, there is a different explanation of the safe inventory in the marketing system between the manufacturer and channel members. The other main problem is on account issues. Account on credit does cause bad account easily. In addition, the collection work is impotent. The development of the market needs to establish a healthy and orderly high-quality distribution channel system of network safety product. Therefore, we have some suggestions in carrying out the job as below: Firstly, we must choose the distribution channel mode of China's network safety product scientifically. With the rapid development of network safety product's market, our distribution channel of network safety product experienced a constantly developing course: in 2001, foreign manufacturers adopt the way of general agent with second agent, thus the domestic corporations used directing marketing and distributed marketing as well; In 2002, the "industrial direct marketing & regional agent plus channel distribution"became the main marketing mode of the network safety product providers; since 2002, a channeling mode of general agent & SI was implemented. In the future, perhaps the direct control of SI channel will become the development direction. Secondly, it is necessary to realize the transformation from channel distributor to network safety providers. The service will become the important component in the network safety solution. The quality of product, quality of service, reliability of brand and prestige of the corporation have already become the customer's main standard of choosing safety products. The network safety service will become the important profiting modes and profit...