Looking for what are marketing channels and their types? Well, we got it for you. In this business world, marketing is the only way to attract consumers. The more efficient your marketing style is, the more customers you attract.
Marketing is a core area of business. It handles operations related to product R&D. It includes activities such as understanding customers’ preferences, new product trends, etc.
Marketing also handles the promotional activities of an organization. Promotional activities help to increase brand awareness. Various marketing channels carry out these promotional activities.
Currently, marketing channels have been updated and moved onto more digital methods. Even though digital methods are the trend, traditional methods are still effective.
Before we jump onto the types of marketing channels, let us take a look at what is a marketing channel –
What is a Marketing Channel?
A marketing channel is a medium through which the organization promotes and provides to customers. A marketing channel helps organizations increase their reach.
For our time, it is very easy to create a digital channel that helps us to reach more customers. Influencer marketing, digital advertisements, word of mouth publicity are a few marketing channels.
Every organization wants its product or service to be available at locations where customers want them. Channels are the medium through which it can be achieved.
ALSO READ ABOUT : Why is Brand Awareness important in Business? 5 Main reasons
Types of Marketing Channels
Essentially, two parties are involved in marketing channels – the producer and the consumer. When the channel involves producers and consumers, it is called a direct marketing channel. When there are intermediaries involved, it is called an indirect marketing channel.
Direct and indirect marketing are the two basic marketing channels. Both direct and indirect channels are the bases for the types of channels.
Consumer Channels
Producers can reach out to consumers directly or use distribution channels.
Business to Consumer
Business-to-consumer is a direct marketing channel. It includes personal selling, direct mail, telephone marketing, and the internet. Producers and consumers contact directly and make the sale. The consumer receives the product directly from the producer. The best example of B2C is Amazon.
Business to Retailer to Consumer
This is a form of indirect channel. The business supplies directly to the retailer. There are no wholesalers involved. Walmart is one of the best examples of business to the retailer marketing channel. The producers directly supply to Walmart. Then they make their sale to consumers.
Business to Wholesaler to Retailer to Consumer
This is another form of indirect marketing channel. The business supplies its products to wholesalers who supply them to their retail contacts. Wholesalers buy in bulk and sell in small quantities to several retailers.
Business to Agent to Wholesaler to Retailer to Consumer
Businesses use this channel when they are entering foreign markets. They delegate the task of selling their product to agents. The agent is someone who has contacts with wholesalers and retailers. Hence, agents help businesses to make a distribution channel in foreign markets.
Industrial Channels
Industrial channels are usually shorter than consumer channels. Direct selling is the way here because of the closer relationship between the manufacturer and customers.
Business to Industrial Customers
This is a direct channel. The business directly sells to the customer. In this channel, heavy and expensive types of machinery are sold. The producer is responsible for the product even after the sale. The huge size of the order makes direct selling and distribution economical.
Business to Agent to Industrial Customers
Business to an agent is an indirect marketing channel. Agents have contact with several small-scale and large-scale industries. Business contacts agents who have contact overseas and across the country to increase their customer base.
Business to Distributor to Industrial Customers
Distributors are another form of indirect marketing channel. Distributors enable customers to buy small quantities in the local areas. Distributors are cheaper and more frequent buyers than agents.
Service Channels
Marketing channels for services are usually short, direct, or through an agent. Since there are no tangible stocks to store, the role of wholesalers and retailers is nullified.
Service Provider to Consumer
Here, the service provider supplies directly to the consumer, for example, healthcare. Usually, service providers have many outlets to reach the consumer. Many service providers, such as banks, retail outlets, and service centers, operate through distribution channels.
Service Provider to Agent to Consumer
Agents are used when the consumers are far away from the service provider. Agents are also an economical option instead of establishing a new outlet. For example, insurance and travel. Many financial institutions use this marketing channel to offer new and existing consumers their services.
Service Provider via the Internet to Consumer
This is one of the most famous and highly used marketing channels. Services like music, software solutions, and financial information are being distributed online.
ALSO READ ABOUT : A Simple and Easy Definition of Marketing Management
FAQs
What is the marketing channel concepts?
The marketing channel refers to the medium through which the organization makes its product available to customers.
What are the three types of marketing channels?
Marketing channels are broadly categorized into three types. These channels are categorized based on the product and the customers. The three types of marketing channels are –
Consumer Channels
Industrial Channels
Service Channels
What are the 5 channels for direct marketing?
Face-to-face selling
Telephone marketing
Email marketing
TV advertisements
Social media advertisements
Closing Statement
Marketing channels are core operative areas for organizations. Businesses must understand their end users – customers- and how to reach them. Marketing channels provide us with a medium to reach our customer base. It also helps business to increase their existing customer base.
I hope this article about the marketing channels is informative. If you have any doubts or additions, channel your thoughts in the comment box.