Source: Teacher Liu's Digital Marketing (ID: liuchunxiong1964)
****Transformation is Systemic Transformation is not a simple individual change, but a systemic transformation. It involves moving from an old system to a new one, and re-matching with the new environment. An operating system is a set of interrelated ecosystems, including organizational structure, functions, and processes; any change in one aspect affects others.
Let's review several major marketing transformations since the reform and opening-up.
1. 1998-2002: Market Focus Downward. Distributors moved from "provincial-level" to "city-level" and "county-level" distribution. Organizationally, the market flattened; each level of channel descent added a level of organization within the sales department. During this process, the original "salesmen" disappeared, replaced by "business representatives." The original wholesalers disappeared, replaced by distributors.
2. Around 2000: The Emergence of Key Accounts (KA). From then on, sales channels added a "terminal channel" alongside the original "circulation channel." Because the pricing systems differed, price conflicts arose between the two channel systems. Therefore, in addition to adding in-store promoters, many companies also developed exclusive products for the terminal channel, differentiating SKUs from the circulation channel.
3. After 2003: Deep Distribution. This transformed distributors from "sitting merchants" to "itinerant merchants," and manufacturers or distributors added roles such as vehicle sales and merchandisers.
4. 2012: The E-commerce Boom. Most traditional companies made the following changes: 1. Established independent e-commerce departments, operating in isolation. Later, with the popularity of live streaming, some companies set up live-streaming departments. 2. Developed e-commerce-exclusive products. Because e-commerce pricing conflicted with circulation and terminal channels, e-commerce prices affected traditional channel prices.
New institutions, new positions, new functions, and new processes are inevitable in marketing transformation. These are visible changes, but behind them lie new principles and logic that are invisible to outsiders yet profoundly influence these changes.
****Three Principles for Designing a Digital Operating System In discussions about digital F2B2b2C, we have established three principles: bC integration, online-offline integration, and the integration of manufacturer, distributor, and store. The design of the operating system must ensure these principles are implemented.
Principle 1: bC Integration
Just as deep distribution focuses on terminals, bC integration focuses on both b and C ends. This differs from traditional marketing that focuses on the b end, and from e-commerce and private domain traffic that only focus on the C end.
In the operational model described later, we concretize bC integration as the "single-store community" as the smallest operating unit, simultaneously addressing both b and C ends. Organizational strength, job settings, and work processes should lean toward both b and C ends.
Principle 2: Online-Offline Integration
Online and offline are not two separate organizations or systems, one for offline and one for online. For example, e-commerce and traditional marketing are two incompatible systems.
Online-offline integration means that online and offline are indistinguishable; one team handles both, and online and offline orders and sales are equally important. Traffic can be directed from online to offline and vice versa.
Principle 3: Integration of Manufacturer, Distributor, and Store
Unlike e-commerce and private domain traffic, which disintermediate and de-emphasize terminals, bC integration puts distributors on the digital front line and revalues the terminal.
In bC integration, the b end contributes significantly. How to reward the b end for its huge contribution? Integration of the three parties means that manufacturers, distributors, and retail stores share user resources. But it also establishes a principle: the traffic entry point is the basis for channel profit distribution. In bC integration, most traffic entries are at the b end, so regardless of whether the transaction is with the manufacturer or distributor, the b end's profit distribution must be considered.
****The "Six Doubles" Operating System Based on the above three principles, we propose the "Six Doubles" channel digital operating system: dual paths, dual private domains, dual scenarios, dual shelves, dual delivery, and dual middle platforms.
The core of the "Six Doubles" system is the "double" character. "Double" does not mean "doing both," but rather that the two are integrated into one. This is like the difference between physical and chemical changes. When two substances are mixed, a physical change means they remain two distinct substances even if thoroughly mixed; a chemical change means the two substances disappear and a new substance is formed.
For example, online-offline integration is not about doing both online and offline, but about having no distinction between them; they are one.
1. Dual Paths. Long-path reach (F2B2b2C) + short-path operation (F2C, B2C, b2C). Long-path reach solves the problem of connecting with a massive number of C-end users; short-path operation solves the problem of operational efficiency. This achieves the best of both worlds. This reflects the integration of manufacturer, distributor, and store, sharing user resources. Otherwise, why would the b end allow manufacturers and distributors to operate their users?
Is dual paths like private domain traffic, where after pushing, the touchpoints lose value? Of course not. Through touchpoints, continuous activation is needed, so long-path reach is continuously required. Additionally, online-offline integration requires continuous online-offline traffic diversion, so long-path reach and short-path operation alternate and continuously reinforce each other.
2. Dual Private Domains. Brand owner's private domain + retailer's private domain. Dual private domains provide dual stickiness. The retailer's private domain solves the problem of user reach, connection, and activation. Retailers are close to users and can build relationships through offline, community, and online dimensions, leveraging their advantages; the brand owner's private domain increases user stickiness through multi-SKU and professional online operations. With dual private domains, user stickiness is stronger, and with shared user resources, all three parties benefit. Dual private domains are a concrete manifestation of online-offline integration and the integration of manufacturer, distributor, and store.
Dual private domains do not mean unilaterally converting the retailer's private domain into the manufacturer's; that would be unfair. It also includes converting the manufacturer's private domain into the retailer's private domain.
3. Dual Scenarios. Offline scenario + online scenario. From the user's perspective, dual scenarios provide transaction convenience; users can choose between online and offline transactions. From the retail store's perspective, dual scenarios solve the problem of "small store, big operations." This reflects the principle of online-offline integration.
Dual scenarios mean that the single-scenario approach of traditional channels and e-commerce becomes outdated, and it marks the beginning of retailers capturing e-commerce's online scenario share. Online and offline shares are determined by sales scenarios.
4. Dual Shelves. Offline shelf + online shelf. This is a derivative need of dual scenarios. With dual shelves, even the smallest store can display all suitable SKUs of the manufacturer, and offline stores can have unlimited shelf space. Offline shelves solve the sales of high-frequency products, while online shelves solve the sales of low-frequency products.
5. Dual Delivery. 2B delivery + 2C delivery, home delivery + store delivery. This is a derivative need of dual shelves. Dual delivery offers the convenience of offline delivery and the dual convenience of online transaction with offline delivery. This also reflects the principle of online-offline integration.
6. Dual Middle Platforms. Back-end middle platform + front-end middle platform. Moving the middle platform forward solves the problems of online-offline integration and enables distributors and retail stores to participate in online operations. This is a common manifestation of the three principles: bC integration, online-offline integration, and the integration of manufacturer, distributor, and store.
****Organizational Guarantees for the "Six Doubles" To support the "Six Doubles" operating system, guarantees must be provided in technology, organization, and work processes.
First, Technology System Supporting the "Six Doubles"
From a technical system perspective, the following technical issues need to be addressed:
1. The technical path for F2B2b2C. Currently, similar technical paths are no longer a problem; 2. Technical issues for bC integration, such as bC dual codes and bC mini-programs, are common; 3. The "dual shelves" at the retail end, mainly the online shelf; 4. Technical integration of F2C, B2C, and b2C transaction and delivery platforms.
Second, Organizational Guarantees for the "Six Doubles"
Traditional enterprises already have three marketing systems: the traditional channel system, the e-commerce department, and the private domain traffic department. Do we need to establish another independent channel digitalization department?
In the future, enterprise marketing organizations will have only two systems: one is the e-commerce system, and the other is the digital system. Everything else will be integrated into these two systems.
E-commerce (B2C) must be an independent operating system. Because platforms are too powerful, B2C operations are mainly platform-driven, and the internal operating system must match the platform. The B2C system is already mature and is not discussed in this article.
Private domain traffic (F2C) may be an independent operating system in the early stages, even similar to e-commerce (B2C). However, once the F2B2b2C model reaches scale, F2C will definitely be integrated into F2B2b2C.
First, the scales are not comparable; F2C's scale is usually much smaller than F2B2b2C. Second, F2B2b2C already includes the F2C operation module. Third, after F2C is integrated into F2B2b2C, it can also leverage b2C. Because F2C is an independent traffic source fully controlled by the manufacturer, it is the fulcrum for forming the "incremental exchange for existing" leverage in bC integration.
The traditional marketing organizational system will gradually disappear during bC integration. So, should we base on the traditional channel system and add new actions, or base on the new organization and absorb traditional channel personnel?
The soul of channel digitalization is bC integration, which is based on the b end, and deep distribution precisely reaches the b end. bC integration only requires adding a few actions on top of deep distribution actions; actual operation is simpler than imagined.
The biggest difference between bC integration and deep distribution is the proportion of personnel allocated to the b end versus the C end. Of course, some enterprises may start from scratch for channel digital transformation.
Compared to traditional offline, which only adds a few actions to deep distribution, the greater organizational and functional change should be the transformation of the original marketing department into a marketing middle platform.
Traditional enterprises have debated whether to have a middle platform, but this was within the framework of e-commerce systems. In e-commerce systems, manufacturers only reach C-end users through platforms, with little real-time user data, so the value of a middle platform is indeed limited. Private domain traffic and channel digitalization both directly reach C-end users and obtain real-time user data, so a middle platform is essential.
The marketing department's function is inherently 2C (unlike the sales department's 2B); the front end connects users, and the middle platform operates users, both are 2C work. The transformation of the marketing department into a middle platform involves a significant role change. Marketing is a functional department with an advisory role. The middle platform is not a functional department; it is an operator role.
Another significant change is for distributors. Traditional distributors in the deep distribution system are essentially distributors; after digitalization, their main roles are daily B2C operations and distribution, with B2C operations likely becoming more important. Because channels gain pull, the push role of distribution correspondingly diminishes.
Some distributors will inevitably fail to transform; every channel transformation sees a new batch of channel players rise and a batch of traditional ones disappear. The digital barriers of digital transformation may pose a greater challenge to distributors than any previous channel transformation in history.
Third, Job Functions and Action Standardization
The front end connects and activates users, the middle platform operates users, and the back end fulfills user orders. This is the division of labor among front, middle, and back ends.
User operation in the middle platform is a mature MarTech technology, which will not be expanded here.
For the front end's connection and activation of users, frontline personnel are accustomed to deep distribution and now need to shift to bC integrated operations. The "Deep Distribution Eight-Step Method" from the early days of deep distribution was the most basic standardized action. Based on bC integration practices, we have preliminarily summarized the standardized action "bC Integration Five-Step Method" , which will be detailed later.
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