A marketing channel is a group of people, organizations, and actions needed to move the ownership of marketed goods from the manufacturing facility to the point of sale. Often it is called a distribution channel, since it is the physical way that products get from the manufacturer to the customer. Distribution channels are generally identified by the product categories they serve.
There are several different types of marketing channels available for manufacturers. The two most common types are the manufacturers’ own brand marketing channels and independent distribution channels. The manufacturer’s brand marketing channels include retail stores and trade shows. These channels typically target established customers in local markets, with a focus on building repeat sales. While some manufacturers use their brands to build brand awareness among consumers, most brands are marketed through various advertising agencies.
Another type of marketing channels are referred to as reverse channels. These are often used to create an impact on the market through distribution to the retail and/or consumer market. For example, a manufacturer produces a video game and then licenses it to a distributor, who markets and sells the game across various platforms (PlayStation 2, Xbox, Game Cube, etc. ). The video game manufacturer makes money from the distributors’ sales, and the distributors make money from their own profits.
As with brand marketing channels, there are several factors that manufacturers need to consider in determining which marketing channels will be most successful. Factors to consider include product demand, channel mix, pricing, and return of investment. Products typically tested in retail environments include PCs, handheld computers, handheld computers, gaming consoles, digital electronic devices, food products, and beverages. Typically retailers test products on a part of their territory before distributing them to other locations. The retailer can determine if the targeted consumer market will be interested in the product line before opening the doors to the public.
In this example, let’s say that the manufacturer has a PC game that is best marketed for kids. In order to encourage kids to buy the game, they would likely have to open up the marketing channels (PlayStation 2, Xbox, Game Cube, etc. ), providing coupons, free games, or other incentives. If the business owner was able to discover the right target audience, they could increase sales. Below are some key takeaways to help identify which marketing channels will work for a particular company.
Consumer factors include consumers’ buying habits, disposable income, purchasing preferences, demographics, and behavior. Marketers use these factors to identify whether the target market will purchase the product or service. A good example of a factor would be the disposable income that a consumer is willing to spend. Some marketers believe that parents influence children to buy, while other retailers believe that children decide for themselves. Other factors include demographics such as age, income level, and culture.
Marketing distribution channels include direct selling channels (grocery stores, drugstores, superstores, etc. ), retail outlets (department stores, malls, shopping centers, etc. ), and mail-order/telephone services.
Marketing intermediaries include distribution channels, direct selling channels, and telemarketing companies. The purpose of marketing intermediaries is to create a larger channel network, allowing a manufacturer to distribute directly to retailers or directly to customers. As a result, a middleman enters the picture and shares time between the manufacturer and the retailer. Many intermediaries are available to work with a marketing channels’ goal of increasing sales volume.
Marketing strategies have a big effect on how well a brand is received. For example, if a company’s marketing strategy does not directly relate to the needs of the consumer, then the consumer will feel like the brand is not relevant to them. An effective marketing channels’ strategy should provide a benefit to the consumers by increasing their access to the information that they need. The benefits should also increase a brand’s perceived value. This increases the ability of the brand to attract new customers.
One way to utilize marketing channels is by forming a distribution partnership. This arrangement allows one distribution channel to carry the product while another company handles the distribution. Distribution partners can work in conjunction with marketing channels to improve both companies’ ability to sell the products to consumers. In addition to providing distribution partners with a distribution channel for the product, these partnerships also provide training to the product distributors so that they can effectively sell the product to their own customers.
Marketing channels can also be used by a manufacturer to create an effective distribution network. The manufacturer can form a direct selling network by selling directly to the consumer. The manufacturer can also form a distribution partnership with other companies who sell similar products. By selling directly to consumers, a manufacturer increases its effectiveness at getting the consumer to purchase its products. On the other hand, a distribution partnership provides the manufacturer with a large pool of potential consumers to market to.