Learn of the different types of marketing channels including retail and more and how they are used in selling goods and services.
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 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.
The Retail Marketing Definition
Learn the meaning of retail marketing covering the four components including product, price, promotion and place necessary for success.
Retail marketing is different from other forms of marketing as it deals with selling products to the consumers directly. The consumers get to buy products through sales channels in retail market like stores, kiosks, malls, vending machines or other outlets.
Main Marketing Components
There are four main components that must be implemented in order to achieve excellent business results. They are known as the 4 P’s of retail marketing strategy or mix and are described as follows:
1. Product: The first component is the product. A retail business typically starts business with a specific category of product, such as women’s jewelry. The retailer must determine factors like price range, designs and selection of the jewelry pieces. If the retailer is able to assume the factors well then he will be able to attract his target customers.
2. Place: The place where the retail items will be sold is an important component of retail marketing too. The selling point should be located at a place where the targeted customers are more likely to come. The place should be clearly visible and must have easy access and exit.
3. Price: Price is a very important component of retail market as it determines whether a prospective customer will buy the product or not. If the products are priced high then the customer will refuse to buy them, and if they are priced low then they will suspect the product quality. So it is important to aptly tag prices on the product.
4. Promotion: Just like in any other marketing method, promotion is an important component of retail marketing too. The business should look out for effective ways of promotion that would attract customers towards its points of sales. The amount spent in promotion should be turned into additional sales in order to help business make large profits.