What is Marketing Channel?

(4 types of
marketing channels) Distribution
Channel Guide(4 types of distribution
channels)
by lapaas | Jan 28, 2020 | Marketing | 0 comments

Do You Know how a product goes Into the Market?

A product goes into the market by different Marketing channels.
The process of going a product from Manufacturer to retailer is
distribution channels. So, Marketing Channel is simply called as a
distribution method of products, in which a company can transfer
their goods from one person to another through different
mediums. In Simple words  “building a connection between
company to customers”.
The distribution channel of a business is an important key
element of any business. The Success of a Manufacturer business
depends on its Distribution channel.
So let’s read the full guide on What is marketing channel, roles of
marketing channel and examples of marketing channel.
What’s in it for me?
1. MARKETING CHANNELS
2. ROLES OF MARKETING CHANNELS
3. TYPES OF MARKETING CHANNELS
4. EXAMPLES OF MARKETING CHANNELS
5. 4 CHANNELS OF DISTRIBUTION
 
1. What is Marketing Channel?
Marketing Channel is simply called as a distribution method of
products, in which a company can transfer their goods from one
person to another through different mediums. In Simple
words  “building a connection between company to customers”.
It’s a way through which product reaches to consumer and due to
this, it is also known as a Distribution channel.
 It is a very useful tool for managing and is essential for
developing a productive and strategic marketing strategy.
Dual Distribution Channel is another type of marketing channel.
It’s a less conventional channel that helps wholesalers to reach
consumers using more that one distribution channel. 
In this type of channel, he can either reach the consumer directly
or simply can sell it to another company or retailer who will then
sell it to the consumer.  
 2. Roles of Marketing Channel
The major role of a marketing channel are that it removes the gap
between producers and consumers. It is a connection that
connects producers to buyers.
It takes part in sales and adverting and controls firm pricing
planning which influences the marketing strategy.
It affects the product strategy by branding, policies, maintenance,
etc.
It is composed of different systems that help the transaction and
physical exchange.
These systems have three categories 
1. Creator of the product
2. A consumer of the product
3. A Middleman (Wholesaler or Retailer)
The Channel performs three functions-
 Transactional functions
 Logistical Functions
 Facilitating functions or helping functions.So these are the
roles of the marketing channel. 

3. Types Of Marketing Channel? 

 There are many types of marketing channels that are
used according to different situations of companies, but now we
have to understand the Main component of Marketing channels. 
1.  Direct Selling 
2.  Intermediaries Selling.
    Direct Selling:  If You Are dealing directly with customers
without any interference of any mediocre is called direct selling.
There are many pros and cons of direct selling we will also discuss
this here.
 Direct Selling Benefits:
 Fewer Expenses
 More Profit
 Can Be Sold On Less Price
Direct Selling Cons:
 Need to Create Brand Awareness
 More Hustle in Marketing
Example of Direct Selling
 Online Selling (eg. Xiaomi)
 Own Brand Outlet (eg. Royal Enfield)
Intermediaries Selling – Intermediaries selling is a channel in
which a company can take help from the Broker or Agents,
Wholesaler and Retailers to reach their customers.
It also seems like a Middleman in a Company.
1. Broker – A broker is someone who can charge the fee from the
company for selling their products.
2.  Wholesaler – A  person who purchases products in large
quantity and sell those products to the retailers.
3. Retailers –  A person who can sell the product to the
Consumer. 
Intermediaries Selling Benefits:
 Easily available to the customers.
 Fast Expansion & Time-saving.
 Less Marketing Efforts.
 Intermediaries Selling Cons: Increase in price of products.

4. Examples of Marketing Channel


 Wholesalers – These are the middle people who
handle the goods in bulk quantity.  They usually sell goods to
retailers and sometimes to consumers directly.
 Internet direct– Internet created a deep effect on
communication, entertainment, buying and selling and now in the
distribution channel.
 Catalog direct – It is a channel in
which consumer selects or order products from a printed or
online catalog.
 Sales team – Sales team create awareness for a
product among the potential customer and prepare him for
interaction with the sales team.
 Value-added Reseller -It is a type of company or
reseller that adds some value and features to the existing product
and resells it.
 Consultant – Consultant is an advisor who works for the
company to create and implement strategies that might be
helpful to the company
 Retail sales agent – A retail sales associate’s job to look for
all sales activities and sales associate job duties like greeting
customers, answering questions, offering assistance, etc.
 Manufacturer’s representative – Manufacturer’s
Representative is a person, sales agency or company that sells
Manufacturer’s products to retailers or wholesalers.
So this are examples of Marketing Channel

 5. 4 Channels of distribution

There are 4 types of channel distribution. All of them are
mentioned below and a bit of knowledge about them.
1. Direct Selling – In direct selling people sell products to the
consumers directly. In direct selling, Peddling is the oldest form. In
modern direct selling, the sales are made through one on one
demonstration, personal contact agreement or internet sales.
   According to the reports of The World Federation of Direct
Selling Associations (WFDSA), 59 regional member associations
considered for more than US$114 Billion in retail sales in 2007, by
 the activities performed by more than 62 million independent
sales representatives.
  According to the reports of The United States Direct Selling
Association (DSA) In 2000, 55% of adult Americans sometimes
purchased goods or services from a direct seller  and 20%
reported that they were currently(6%) were (14%) a direct seller.
2. Selling through intermediaries – In Intermediaries channel of
distribution intermediaries such as wholesalers and retailers are
involved and they are responsible for selling the products.
(Producer/manufacturer=>agent=>wholesaler=>retailer=>con
sumer) is the most indirect channel when many small
manufacturers and retailers are used.
1. Dual distribution –When wholesalers want to use more
than one channel at the same time to reach the user at the end or
consumer or user then it is known as dual distribution. They may
sell directly to the consumers or to the companies or retailers for
reselling. The best example of dual distribution is Format
franchising.
2. Reverse channels – In all of the above channels you might
have seen one common thing that is flow. In every type of
channel, channel flows from producer to the intermediate to
consumer or user. But due to the technology, another flow has
been made possible. It might also go in the reverse direction and
might go from consumer or user to intermediate to the
beneficiary or the one who benefits from it. In reverse, you will
find no producer, only a beneficiary or user.    
I hope you got What is marketing channel, roles of marketing
channel and examples of marketing channel.