By marketing channel, we mean all the channels of distribution short-term or long-term, that are used for the transfer of products or services directly from the producer to the end buyer.
The goal of distribution channels is to make products available on the market according to consumer desires.
In practice, the marketing channel, represents how products reach the end user, meaning, the transfer of goods through suppliers such as couriers and carriers.
Therefore, included in the marketing channel are:
- The producer: who manufactures the product;
- The end customer: who purchases the product;
- The intermediaries involved in the transfer: who deliver the product.
Another form of marketing channel is the dual distribution channel, which allows the producer to reach the end user using different distribution channels.
Types of marketing channels
The marketing channel is characterized by different types of channels, namely:
- Direct channel: involves control of distribution by the producer. The key players in this channel are the producer and the retailer and it is very common in the insurance sector because it allows for an additional service when ordering a product (example, warranty, support, maintenance);
- Short-term channels: the short-term channel is effective if producers have adequate resources to meet customer demands for large orders;
- Long-term channels: the long-term channel involves small and inexpensive orders;
The distribution channel, is important for an effective marketing strategy because it makes the meeting between supply and demand possible: the company produces a product that is easily accessible to the end customer.
Moreover, the marketing channel stands out from all other strategies due to its availability and accessibility, which allow it to meet demand, thus satisfying customer needs.
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