Analysis Of Equilibrium Of Interest Game Of Enterprises In Marketing Channel

Marketing channel is one of the core components of 4P(Product, Price, Promotion and Place)theory of marketing. It is an effective tool for contemporary businesses to enhance their marketing competitiveness. As competition in China market becoming sharper and sharper, products become homogenous, low price strategies tend to be alike, and effectiveness and efficiency of promotion decrease ,competitive advantage of marketing channel is emerging and swift to dominate companies' landscape. Winning channels winning markets, which spreads among businesses, vividly highlights the importance of marketing channel for the companies' future success.As the market competition environment changing, the power of channel members is changing, which shifts the channel power structure. To some extents, the power of manufacturers has diminished and the power of distributors has enhanced. So, there will be conflicts between manufacturers and distributors, because manufacturers don't want to give up their preponderant station, distributors' strength is becoming stronger and stronger. The deep-seated reason for the conflicts is the profit. Thus the issues are raised: How is the profit allocated? And how can manufacturers and distributors cooperate with each other? What factors influence mutual cooperation? All these are worth delving into greater depth in theory.This paper, from manufacturer perspective, employs the basic theory and research method of game theory: firstly, to make a comprehensive analysis of cooperation-competition game relationship between manufacturers and distributors in the marketing channel; secondly, to build manufacturer-and-distributor game capability evaluation systems; thirdly, to analyze the cooperation-competition relationship between manufacturer and distributor in game model; finally, we realize the effective method to achieve equilibrium is to establish portrait strategic alliances between manufacture and distributor.