Types of Marketing Channels
Marketing is crucial to the success and survival of a business, and it is a necessary tool for businesses to communicate with consumers. It is essential for getting buyers for a business’ products or services, and you can often find them trying different marketing methods and strategies. Some of them are old, tried and tested formulas, and others are new and fairly innovative. Some work well, while others do not. Not all conventional channels are effective for businesses, and not every unique marketing approach pays off.
As a marketing executive, business owner, or manager, you need to be able to identify different types of marketing strategies and their viability for your business. Still, these marketing channels are the way in which you get your products and services to the customers, and you need to be careful about what channel you use. Here are some common types of marketing channels.
This is a direct marketing channel from the manufacturer of the product or provider of the service to the end consumer. There is no intermediary, like a retailer, agent, or wholesaler. The product is made by the manufacturer and sold directly to the consumer. Therefore, the marketing approach is also direct. Local businesses like bakeries and restaurants use this channel the most.
The manufacturer sells products to the retailer, and the retailer sells them to the end consumer. This kind of channel is used to sell retail shopping goods like furniture, shoes, clothes, and kitchenware. The merchandise may not be needed immediately, and the retailer is tasked with marketing the products to the consumers. Manufacturers that create shopping goods with no real demand prefer this channel of distribution and marketing.
In this method of distribution and marketing, consumers buy from the wholesaler, who buys products in bulk and resells them for a reduced price or with some other incentive. With a lower purchase price, it’s easier to attract and market the goods to the customers. For instance, some warehouse clubs offer memberships to customers to buy directly from the wholesaler.
Here, the distribution of the product takes place through more than the one intermediary, or an agent. The agent acts as a middleman between the manufacturer and retailer or wholesaler. This is useful when the products have to be moved quickly to the end consumer, like with perishable goods. Fish, for instance, need to be sold to consumers quickly, and so fisheries contact many wholesalers through an agent. The wholesalers then sell to retailers.