what is a marketing channel? define each of the four types of marketing channels.
Expert Answer
Marketing channel is nothing but the set of activities that transfer the good from the manufacturer to the consumer. This process include order completion, warehousing and delivery of products to the customer. Distribution channel consists of air, rail, truck and water transportation.
There are four types of marketing channels. They are: –
- Direct selling – Direct distribution involves distributing products directly from the manufacturer to the customer. This include one-on-one selling, internet sales, etc. The benefit of direct selling is that it is convenient for the customers and provide service benefits like demonstrating the product personally, home delivery, etc.
- Selling through intermediaries – . Indirect distribution involves distributing product through an intermediary from the manufacturer to the consumer. Wholesalers and retailers are intermediaries that make the product available to the customers.
- Dual distribution – This involves different marketing approaches that are used by wholesalers and manufacturer where more than one channel is used simultaneously to make the product available to the end users. Example – Format franchising.
- Reverse channel – This involves the flow of damaged goods from the customers to the supplier or manufacturer which can be recycled as raw material.