Learn of the several different types of marketing channels used in selling goods and services and how they benefit manufacturers, sellers and consumers.
The Different Types of Marketing Channels
Also known as distribution channels, marketing channels refer to the ways in which products move from the manufacturer/provider to the consumers. They involve a set of activities that facilitate the transfer of ownership of goods. They are important ways for marketing. There are several types of marketing channels which include but are not limited to the following:
1. Manufacturer to customer
This is a most straightforward distribution channel. It is where manufacturers sell their goods or services directly to the consumers without the involvement of intermediaries, wholesalers, resellers or other middle men. This is common in industries where products have a very short life-span and are less likely to survive longer distribution process. It is so in small-scale industries where the volume of goods demanded by consumers can be provided by a single premises with a limited number of employees.
2. Retailer to Consumer
A conventional traditional marketing channel, this is where retailers acquire goods directly from the manufacturer or through a wholesaler. He then sells them to the consumers, usually with a significant time lag. It’s ideal for manufacturers that produce clothes, furniture, shoes, tableware and other shopping goods. This is where consumers often need more time with such items before making a purchasing decision. The channel can also be suitable for a producer who is new to the market and want establish to themselves quickly. They can use an established dealer to get their products to the end-user. Sales can be made affiliate, email or online marketing and other ways.
3. Wholesaler to consumer
Another marketing channel is where wholesalers buy products from a manufacturer/agent and then sell them to the consumers. In this channel, a consumer can buy products in bulk, often at lower prices than normal because there no additional costs like service costs that one would pay when buying from retailers. It’s important to note that wholesalers do not always sell directly to consumers. In some cases, they may go via a retailer before the goods get to the consumer.