Wouldn’t it be great to be able to be in multiple places at once? Or anywhere and everywhere you want to be? With the rise of technological advances, your brand could be just about anywhere at any given time, naturally at a cost. But, does that even make sense? Or is it even cost-effective?
Some marketers feel that being everywhere at once well help build brand awareness and visibility across all different mediums, however, marketing channel selection is not as simple as being every at once. So, what is channel marketing and why are the important functions?
According to a marketing expert, Kevin Keller, channel marketing is defined as a set of interdependent and independent organizations involved in the process of making a product or service available for use or consumption.” It includes the design and management of intermediaries like wholesalers, distributors, brokers, and retailers. In the 4 “P’s” of the marketing mix, it is considered the “place”.
The important functions of channel marketing
Channel marketing plays an important part in your marketing strategy and like product, price, or promotion, it helps overcome the gaps between the producers and consumers in terms of time, place, and possession, according to Business Management Ideas.
These channels perform 3 important essential functions:
1. Transactional – buying, selling, and the assumption of some of the risks.
2. Logistical – transportation, sorting, assembly, and storage.
3. Facilitation – channel coordination, finance, service, maintenance, and information distribution.
4 Types of processes of marketing channels
A channel can be a retail store, catalog, letter, email, or even a text message. The following are four types of processes of marketing channels and what they represent:
- Direct selling – marketing and selling directly to the consumer.
- Intermediaries – the “middleman” that offers intermediation services between two trading parties.
- Dual distribution – a wide variety of marketing arrangements that the manufacturer or wholesaler may use at the same time to reach consumers.
- Reverse channels – may go from the consumer back to the originator.
As you can see, channel marketing is an extensive aspect of the marketing mix, and marketers need to be prudent in their planning to choose the right channel or their brand and product. We’ll look more into these “right places” in part 2 of this blog. Any experience in channel marketing planning? Share your thoughts and comment below. And don’t forget to read up on other marketing-related geeky stuff on my blog.