A marketing channel is a means of reaching customers with product and service. Marketing channel is a path for your product or service so that you can engage with your customer. All goods go through channels of distribution and your marketing will depend on the way your goods are distributed.
Channel : the channel is the process and partners that move a product from the procedure to the consumer (Robicheaux & Coleman, 1996). What does channel do in marketing? It connects producer with the consumer, it completes the transition, manages the logistics and financing. There are three types of marketing channel.
Communication Channel : communication channel is a pathway to deliver message to customer and receiver message from a customer. For example, newspaper, poster, email, and social media
Distribution Channel: Distribution channel is a pathway to deliver the product to the customer. In marketing, we have different distribution marketing channel i.e. manufacturer-consumer, manufacture- retailer-consumer, and manufacture- wholesaler-retailer- consumer, and manufacture- wholesaler-distributor- retailer. For example Warehouse, transportation vehicle, shop, wholesaler, and retailer.
Selling Channel: Channel that you utilize for making an impression to targeted people to achieve closing sales.
If a company decide to go direct that can be a right business decision but if you remove the middleman then you have to figure out how to do on your own all thought things the middleman is good at doing for you (Gulatia, Bristowb, & Wenyu, 2010). So our professor Krishna sir told us "you should have use the specialty of middleman who is really good at doing this job”. In our local context two types of marketing channels are popular. They are
Direct Marketing Channel: When a producer and ultimate customer deal directly with each other. For example, think about Dell computer selling strategy. It’s most of computer they sell direct to customer via internet. Customer order from online and dell employees are send it to consumer. Another suitable example is apple, you can buy apple products via online and other places. But the real fact of Apple has own company’s store. You are dealing directly apple employee. The third example of a direct channel is IBM when IBM calls large customer they have own high-power experience very senior sells representative who does that interact with them. My example is we used milk product on the daily basis form a nearest dairy. The dairy person has own milk production farm and he direct sells his product with us. In his business no any middleman is there. So sometimes I used direct marketing channel strategy. So in Direct marketing Manufacturer makes the goods and sells them to the consumer directly with no intermediary, such as a wholesaler, agent or retailer (Klein, Frazier, & Roth, 1990). Goods come from the manufacturer to the user without an intermediary or middleman. For example, a farmer may sell some produce directly to customers. For example, a bakery may sell cakes and pies directly to customers.
Indirect marketing channel: When there are independent intermediaries between the producer and consumer. You have the producer of product. You have the independent retailer or chain of retailer stores and this retailers store helping you to reach the customer. For example, I drink coca cola but I can’t get coca- cola from direct coca- cola industry. I get coca- cola from different supermarket, mart and retailer. For a suitable example of service, in an insurance company to sell their product for their Target customer whether they are a business customer or consumer via independent brokers. So in multichannel distribution strategy Distribution that involves more than one intermediary involves an agent called in to be the middleman and assist with the sale of the goods (Song & Wang, 2014). An agent receives a commission from the producer. Agents are useful when goods need to move quickly into the market soon after the order is placed. For example, a fishery makes a large catch of seafood; since fish is perishable it must be disposed of quickly. It is time consuming for the fishery to contact many wholesalers all over the country so he contacts an agent. The agent distributes the fish to the wholesalers. The wholesalers sell to retailers and then retailers sell to consumers (Blunt, 2017).
References
Blunt, L. (2017). Types of Marketing Channels. Chron .
Gulatia, R., Bristowb, D., & Wenyu, D. (2010). A Three-Tier Model Representing the Impact of Internet Use and Other Environmental and Relationship-Specific Factors on a Sales Agent’s Fear of Disintermediation Due to the Internet Medium. Journal of Marketing Channels, informaworld.com/smpp/title~conten....
Klein, S., Frazier, G. L., & Roth, G. (1990). A transaction cost analysis model of channel integration in international markets. Journal of Marketing Research , 196-208.
Robicheaux, R. A., & Coleman, J. E. (1996). The Structure of Marketing Channel Relationships. SAGE Journals.
Song, W., & Wang, R. (2014). Consumer Choice, Firm Performance and Channel Coordination in a Dual-Channel Distribution System. American Journal of Operations Research, 2014, 4, 217-227.
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A marketing channel is a means of reaching customers with product and service. Marketing channel is a path for your product or service so that you can engage with your customer. All goods go through channels of distribution and your marketing will depend on the way your goods are distributed.
Channel : the channel is the process and partners that move a product from the procedure to the consumer (Robicheaux & Coleman, 1996). What does channel do in marketing? It connects producer with the consumer, it completes the transition, manages the logistics and financing. There are three types of marketing channel.
Communication Channel : communication channel is a pathway to deliver message to customer and receiver message from a customer. For example, newspaper, poster, email, and social media
Distribution Channel: Distribution channel is a pathway to deliver the product to the customer. In marketing, we have different distribution marketing channel i.e. manufacturer-consumer, manufacture- retailer-consumer, and manufacture- wholesaler-retailer- consumer, and manufacture- wholesaler-distributor- retailer. For example Warehouse, transportation vehicle, shop, wholesaler, and retailer.
Selling Channel: Channel that you utilize for making an impression to targeted people to achieve closing sales.
If a company decide to go direct that can be a right business decision but if you remove the middleman then you have to figure out how to do on your own all thought things the middleman is good at doing for you (Gulatia, Bristowb, & Wenyu, 2010). So our professor Krishna sir told us "you should have use the specialty of middleman who is really good at doing this job”. In our local context two types of marketing channels are popular. They are
Direct Marketing Channel: When a producer and ultimate customer deal directly with each other. For example, think about Dell computer selling strategy. It’s most of computer they sell direct to customer via internet. Customer order from online and dell employees are send it to consumer. Another suitable example is apple, you can buy apple products via online and other places. But the real fact of Apple has own company’s store. You are dealing directly apple employee. The third example of a direct channel is IBM when IBM calls large customer they have own high-power experience very senior sells representative who does that interact with them. My example is we used milk product on the daily basis form a nearest dairy. The dairy person has own milk production farm and he direct sells his product with us. In his business no any middleman is there. So sometimes I used direct marketing channel strategy. So in Direct marketing Manufacturer makes the goods and sells them to the consumer directly with no intermediary, such as a wholesaler, agent or retailer (Klein, Frazier, & Roth, 1990). Goods come from the manufacturer to the user without an intermediary or middleman. For example, a farmer may sell some produce directly to customers. For example, a bakery may sell cakes and pies directly to customers.
Indirect marketing channel: When there are independent intermediaries between the producer and consumer. You have the producer of product. You have the independent retailer or chain of retailer stores and this retailers store helping you to reach the customer. For example, I drink coca cola but I can’t get coca- cola from direct coca- cola industry. I get coca- cola from different supermarket, mart and retailer. For a suitable example of service, in an insurance company to sell their product for their Target customer whether they are a business customer or consumer via independent brokers. So in multichannel distribution strategy Distribution that involves more than one intermediary involves an agent called in to be the middleman and assist with the sale of the goods (Song & Wang, 2014). An agent receives a commission from the producer. Agents are useful when goods need to move quickly into the market soon after the order is placed. For example, a fishery makes a large catch of seafood; since fish is perishable it must be disposed of quickly. It is time consuming for the fishery to contact many wholesalers all over the country so he contacts an agent. The agent distributes the fish to the wholesalers. The wholesalers sell to retailers and then retailers sell to consumers (Blunt, 2017).
References
Blunt, L. (2017). Types of Marketing Channels. Chron .
Gulatia, R., Bristowb, D., & Wenyu, D. (2010). A Three-Tier Model Representing the Impact of Internet Use and Other Environmental and Relationship-Specific Factors on a Sales Agent’s Fear of Disintermediation Due to the Internet Medium. Journal of Marketing Channels, informaworld.com/smpp/title~conten....
Klein, S., Frazier, G. L., & Roth, G. (1990). A transaction cost analysis model of channel integration in international markets. Journal of Marketing Research , 196-208.
Robicheaux, R. A., & Coleman, J. E. (1996). The Structure of Marketing Channel Relationships. SAGE Journals.
Song, W., & Wang, R. (2014). Consumer Choice, Firm Performance and Channel Coordination in a Dual-Channel Distribution System. American Journal of Operations Research, 2014, 4, 217-227.