Manufacturers and service providers want their goods and services to make a profit. For them to make a profit, they need to get these products in front of the consumer. They produce products in large quantities and often require intermediaries to get their products to the customer. The 4 p’s in the marketing mix consists of place, price, product, and promotion. Channel marketing is part of the distribution of the “place” in the marketing mix. It focuses on the distribution of products or services from the producer to the consumer. Channels help build relationships between the producer and the buyer. They can affect brand equity, and the channel you choose determines your pricing strategy.
Types of Marketing Channels
Benefits of Channel Marketing
Feedback: You ever go to a restaurant, order a meal, and ask for a doggie bag. You could have asked them to make a better-tasting meal, but no one wants to be that person. Most people are too afraid to give honest feedback to a person providing them a good or service. Consumers shop at the same store, building relationships with the employees. They trust them enough to give them honest feedback. Using intermediaries can get you valuable information about consumer experiences.
Reduced Costs: Doing everything on your own seems like a great idea, but this might cost you more than you think. Retailers, wholesalers, and distributors could store some of your products in their stores, preventing you from buying or renting extra space for storage. Working with intermediaries also provides easy access to the consumer, cutting shipping costs. Consumers want easy access to goods and services. Using a distribution channel extends your reach faster than doing it on your own.
Promotion: In addition to goods being available in multiple locations closer to the consumer, intermediaries can help you implement promotional strategies. Intermediaries come up with a promotional strategy as well, allowing you to reach more prospects.
The channel system’s goal is to make goods or services easy and readily available for the consumer. Consumers don’t want to wait for an item to ship for days or weeks if they could drive to the store and get it in 15 minutes. Though channel marketing has evolved thanks to technology, many of us want to touch products before purchase. Manufacturers can’t do it all. Channel marketing makes it easier to reach consumers at a low cost and a faster rate. It allows us to reach a broad audience and familiarize consumers with our goods or services. Consumers may not have use for your product now, but because they see it at their local store. The day that they need it, they will think of your product or brand.