By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Next Gen HeroNext Gen Hero
  • Home
  • Entrepreneurship
  • Fintech
  • News
  • Technology
  • Motivation
Reading: Why are marketing channels important to a firm?
Share
Notification Show More
Latest News
Why Buying Precious Metals Can Be Efficient as a Hedge Against Inflation
Uncategorized
Foot Locker Announces Plan to Close Nearly 400 Mall Stores by 2026
Foot Locker Announces Plan to Close Nearly 400 Mall Stores by 2026
News
Chinese AI Companies Circumventing US Sanctions Through Loopholes
Chinese AI Companies Circumventing US Sanctions Through Loopholes
News
FinTech IPO Index Plummets 4.1% as Oportun and Katapult Stocks Slide
FinTech IPO Index Plummets 4.1% as Oportun and Katapult Stocks Slide
News
Frederick Community College Launches Pitch Competition for Food Business Entrepreneurship Program
Frederick Community College Launches Pitch Competition for Food Business Entrepreneurship Program
News
Aa
Next Gen HeroNext Gen Hero
Aa
  • Home
  • Entrepreneurship
  • Fintech
  • News
  • Technology
  • Motivation
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Next Gen Hero > Blog > Fintech > Why are marketing channels important to a firm?
Fintech

Why are marketing channels important to a firm?

Vanessa Shaw
Last updated: 2022/11/14 at 5:03 PM
Vanessa Shaw 1 year ago
Share
Why are marketing channels important to the firm?
SHARE

For any firm marketing channels are effective ways of ensuring that their products and services reach the intended target audience in a planned manner. All goods pass through distribution channels. The marketing often decides who wants the goods and how the goods are distributed. The process followed from production to consumer is important as the marketer decides which specific route(s) or channel(s) is best for their specific product. Let us explore why are marketing channels important to the firm or company.

Contents
What are Marketing Channels & their FunctionsTypes of Marketing Channels1. Direct selling2. Selling through intermediaries3. Dual distribution4. Reverse ChannelsWhy are marketing channels important to the firm?The Digital Era

What are Marketing Channels & their Functions

Stern & El-Ansary outlines advertising and marketing channels as, “sets of independent organizations involved in the process of making a product or service available for use or consumption.”

Marketing channels include individuals and firm, such as distributors, wholesalers, and retailers, who help extend the sales by reaching out to a wider audience. Channels can also be a retail store, a marketing email, cold-calling, mail order catalogue, etc.

The middlemen of the marketing channel can be divided into three categories:

  • The producer of the product: a craftsman, manufacturer, farmer, or other extractive industry producer
  • The user of the product: an individual, household, business buyer, institution, or government
  • Certain middlemen at the wholesale and/or retail level.

Their main functions include:

  • Transaction functions: buying, selling and risk taking
  • Logistics functions: picking, warehousing, sorting and transporting
  • Facilitating functions: after-sales service and maintenance, financing, information dissemination, channel coordination or routing

Types of Marketing Channels

There are four types of marketing channels: direct selling; selling through intermediaries; dual distribution; and reverse channels.

1. Direct selling

It is the marketing and sale of products directly to consumers outside of a fixed retail location.

2. Selling through intermediaries

An Intermediary (or broker/indirect selling) is a third party that offers an intermediary service between two parties for a transaction.

3. Dual distribution

This describes a wide range of marketing schemes whereby a manufacturer or wholesaler uses more than one channel at once to reach the end user.

4. Reverse Channels

The reverse channels can go from the consumer through the intermediary to the receiver. The recycling cans are an appropriate example of a reverse channel.

Types of Marketing Channels
Img Src: lumenlearning.com

Why are marketing channels important to the firm?

The marketing channels are very important to every firm. Marketing channels are capable of majorly influencing:

  • The relationship between the manufacturers and the buyers.
  • The firm’s pricing strategy.
  • The overall product strategy through branding, policies, and willingness to stock.

It is essential to create an effective marketing strategy as the right channel will ensure optimal results between the producer and the buyer. The marketing channels represent the manufacturer and are responsible for how the goods and services are received by the consumers. Thus, to create the right perception about any product it is important to streamline the marketing channels.

The Digital Era

As the technology and world continue to grow, so do the marketing channels at one’s disposal. For example, a firm operating and manufacturing goods in the United States can today easily reach a customer base in other countries such as Europe and Asia through the right digital marketing channels. There is abundance of options for marketing from the digital perspective.

TAGGED: channels, content, digital, digital marketing, marketing, offline marketing, seo, social media, strategy
Vanessa Shaw September 28, 2021
Share this Article
Facebook Twitter Email Print
Vanessa Shaw
By Vanessa Shaw
Follow:
Vanessa Shaw is a tech geek who loves getting the latest gadgets and writing about them. She has been writing for many years, and she brings a unique perspective on different topics that are published on Next Gen Hero.
Previous Article How Much Does a Realtor make on a $100,000 sale?
Next Article Introduce yourself in a presentation 5 Creative ways to introduce yourself in a presentation
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Facebook Like
Twitter Follow

Popular Posts

Does Jollibee accept Gcash?
Fintech
IS CIRRUS OWNED BY MASTERCARD
Is Cirrus Owned By Mastercard?
Fintech
Knowledge Of Financial Markets Important In Business
Why Knowledge Of Financial Markets Is Important In Business Finance
Fintech
The Advantages of Forex Trading on the MetaTrader 4 Platform
Fintech
Does Amazon Pay Balance expire?
Fintech
robinhood
How to withdraw buying power from Robinhood?
Fintech

You Might Also Like

Different Ways To Buy Bitcoin

1 month ago

How to Sell ETH (Ethereum)

2 months ago

How to Store Bitcoin

2 months ago
robinhood

How to withdraw buying power from Robinhood?

3 months ago

© 2023. nextgenhero.io. All Rights Reserved.

  • Home
  • About Us
  • Contact Us
  • Privacy Policy

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?