What is a marketing channel?
A marketing channel, also known as a distribution channel, is the way in which individuals or businesses deliver their product or service to the consumer.
What is the purpose of using marketing channels?
The purpose of using marketing channels is to enable producers of goods and service to create an efficient strategy to get the correct products to their target customer/s.
What is the principal structure of a marketing channel?
A marketing channel always consists of a producer and end user. Between the producer and end user there can be various contributions made by people or businesses who add value by making the product or service more readily available to the end user. Components that make up a marketing channel are:
1. a producer
2. end user/consumer
3. “middle men” – people or businesses who get a product or service closer to the end user.
What are the different types of marketing channels?
Producer > end user (direct)
Producer > Retailer > End User (indirect)
Producer > Distributer > Customer (indirect)
Producer > Broker > Retailer > Customer (indirect)
Where does the selecting of a Marketing channel fit into the process of establishing e-commerce marketing?
Researching and modelling potential marketing channels should come directly before the selection of a marketing channel is made. Once a marketing channel is chosen, setting the price of the product or service should immediately follow. Once this is done e-commerce marketing can be established, as there will now be the required information to market the products or services suitably within the e-commerce market place.
How does the selecting of Marketing channels impact on e-commerce marketing?
If a producer is selling via an indirect marketing channel, for example: (producer > distributer > customer) and also selling via e-commerce there is the potential for the producer to be both a supplier, as well a direct competitor to a reseller. This is known as “channel conflict”.
What specific terms are used when selecting Marketing channels?
- Deal registration Used to prevent channel conflict where producers and resellers may start to undercut each other, potentially leading to resellers finding other producers to purchase from.
- Duel Distribution Using more than 1 distribution channel to direct products and services to customers.
- Supply chain management Managing the course of everything involved in the supply, development, production, finances and information systems needed in the creation of a product or service to the delivery to the customer.
- Multichannel Marketing Using a combination of platforms to interact with customers. This can be direct (websites, TV, commercials, magazine ads) and indirect (blogs, word of mouth, videos)
More information about Marketing Channels