Distribution truck
A direct marketing channel consists of just two parties: the producer and the consumer. By contrast an indirect channel includes one or more intermediaries (wholesalers, distributors, brokers, or agents).
Firms often utilize multiple channels to diversify their customer base, reach more customers and increase their effectiveness.
Some companies find ways to increase their sales by forming strategic channel alliances with one another – particularly in international markets (where they may not possess a high level of local knowledge).
Other firms look for ways to cut costs, and strengthen direct communication with customers, by cutting out the ‘middleman’. Direct foreign investment, joint ventures, exporting, franchising, and licensing are some of the channels by which firms attempt to enter foreign markets.
Reading: Marketing Channels
- Read this chapter, which provides an overview of using marketing (i.e. distribution) channels to create value for customers. This covers some of the same concepts as the other readings in this learning pathway, but focuses on different aspects and provides additional insights.
- Post a WEnote about which marketing channels you think are most effective. Look on the course feed to read what others have posted.
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Note: Your comment will be displayed in the course feed.
A direct marketing channel consists of just two parties: the producer and the consumer. By contrast an indirect channel includes one or more intermediaries (wholesalers, distributors, brokers, or agents).
Firms often utilize multiple channels to diversify their customer base, reach more customers and increase their effectiveness.
Some companies find ways to increase their sales by forming strategic channel alliances with one another – particularly in international markets (where they may not possess a high level of local knowledge).
Other firms look for ways to cut costs, and strengthen direct communication with customers, by cutting out the ‘middleman’. Direct foreign investment, joint ventures, exporting, franchising, and licensing are some of the channels by which firms attempt to enter foreign markets.
Reading: Marketing Channels
You must be logged in to post to WEnotes.
Note: Your comment will be displayed in the course feed.
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