Marketing Channels can be defined as the set of 

people, activities, and the

intermediary organizations that play a crucial role in transferring the ownership of
the goods from the point of production or manufacturing to the point of
consumption (Bhasin, 2018). There are different forms of distribution channels
used by manufacturers to get their products to the end-point (consumers). These
include:

 Manufacturer to Consumer – one of the effortless avenue of marketing

channels used as the goods produced reaches the consumers directly from
the manufacturer without the involvement of a “middle man”. This
distribution is proven to be cost effective and profitable for both parties
(Bhasin, 2018). An example of manufacturer to consumer marketing channel
is farmers selling produce directly to consumers.
 Manufacturer to Retailer to Consumer – this distribution channels involves
the use of a “middle man” in order to get goods to consumers. It is the most
widely used and preferred distribution channel. Most companies that
produces furniture, clothing and shoes would be the users of this form of
marketing channel (Bhasin, 2018).
 Manufacturer to Wholesaler to Consumer - This category of Marketing
Channel is usually adopted by the consumers who are looking out for bulk
purchases of the specific items and procuring the same from the wholesaler
works out quite easy and cost effective for them owing to the economies of
scale factor plus no involvement of other intermediaries. The wholesaler
reduces the cost to the consumer such as service cost or sales force cost
making the items available to the consumer at cheaper rates.
 Manufacturer to Agent to Wholesaler to Retailer to Consumer - This type of
Marketing Channel involves more than one middlemen or intermediary
 making the goods reach to the consumers. The agents or the middlemen
helps and assists with the sale of the goods and charge their commission
from the manufacturer. They are quite helpful when the goods need to reach
the consumers in a short span of time.

As a manufacturer, the ability to sell more products is highly dependent on the

distribution channel that is adopted by the company. Today, marketing channel
decisions are as important as the decisions companies make about the features and
prices of products (Littleson, 2007). Consumers have become more demanding.
They are used to getting what they want. If you can’t get your product to them
when, where, and how they want it, they will simply buy a competing product. In
other words, how companies sell has become as important as what they sell.

Benefits of Marketing Channels to Manufacturers:

1. Reducing costs of customer acquisition: You can reduce your customer

acquisition costs through channel partners. One of the greatest costs which
you may be encountering is spending time and focusing on the wrong
opportunities. It is quite a challenge to determine promising leads and then
prioritize them. A channel partner can help you identify worthy leads and
even out you in touch with them (Tan, 2017).
2. Reduces stocking and delivery expenses: Using an existing distribution
network extends your company’s geographical reach much more easily and
quickly than if you do everything on your own. Retailers stock their shelves
with your products and customers go to store locations to purchase them,
you don’t incur additional stocking and delivery expenses.
3. Promotion - Another aspect in the importance of Marketing Channels is that
the middlemen perform the function of promoting the goods of the
manufacturer by planning and designing their own sales incentive and
 customer loyalty programs to attain their sales targets and increased market
share objectives. This ultimately works for the benefit of the manufacturer
and all the parties involved in the process (Bhasin, 2018).
4. Readily available feedback: Retailers would have a better idea of which
products would sell in their specific area. Thus, their feedback can prove to
be valuable to manufacturers in making a product that most customers want
and need (Osborn, 2019).
5. More customers: As a manufacturer, it is your goal to make sure that
customers purchase your products. It may cost you more to try to increase
the number of customers who purchase your products. However, when you
use intermediaries, it can be a way of reaching out to more customers. They
help you to sell more. Intermediaries also help customers to find products.
Customers can find products when they shop at a retail shop.

To conclude, the use of a marketing channel is quite beneficial for manufacturers

in boosting sales, cutting costs, promoting their products and acquiring more
customers. The “middle man” plays an integral role in the success of
manufacturing companies. Therefore, it is with these reasons I am in agreement
that manufacturers benefit greatly from using intermediaries.

References:

Bhasin, H. (2018, August 23). What are Marketing Channels and their application
in marketing? Retrieved from https://www.marketing91.com/marketing-channels/

Littleson, R., “Supply Chain Trends: What’s In, What’s Out,” Manufacturing.net,

February 6, 2007, http://www.manufacturing.net/articles/2007/02/supply-chain-
trends-whats-in-whats-out (accessed April 13, 2012).
Osborn, M. (2019, November 20). The Advantages of a Distribution Channel for
Manufacturers. Retrieved from https://blog.apruve.com/the-advantages-of-a-
distribution-channel-for-manufacturers

Tan, A. (2017, June 10). The Advantages of Using Channel Partners. Retrieved
from https://theresourcegroup.asia/advantages-using-channel-partners/