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Marketing Channel refers to a distribution system used by a company so that the goods reach the end customers efficiently.
Marketing Channel in simple terms is the activities, organization, and people that help to transfer goods from the production facilities to the point of consumption.
Businesses in marketing channels refer to
1. Product Manufacturer
2. Intermediaries
3. End-user of the product
Functions of Marketing Channel
- Transactional – Include selling and purchasing.
- Logistical – Include warehousing and shipping.
- Facilitating – Include maintenance, channel; control and after-sale services.
Channel Levels
Consumer Channel
In Consumer Channel, manufacturers reach out directly to the end consumer without any distribution channel or by using one or more channel members.
Zero Level
Zero Level refers to direct selling from the manufacturer to the end-consumer. It includes manufacturer-owned stores, door-to-door selling, telephonic marketing, TV selling, online selling and mail orders.
Example –
- Avon
- Tupperware
- Nike
- Apple
One Level to Three Level
A 1 –Level channel refers to one selling mediator like a retailer.
A 2 –Level channel refers to two selling mediators like a wholesaler and a retailer.
A 3 –Level channel refers to three selling mediators like a retailer, wholesaler and a jobber.
Industrial Channel
In Industrial Channel, there is direct selling from the manufacturer who is mostly producing industrial goods and dealing in B2B sales to the end-consumer.
Zero, One and Two level marketing channels are common in Industrial Channel.
Reverse Channel
Reverse Channel refers to the backward flow channel where waste is sold to companies who reuse or recycle it to make new products. It includes consumer to intermediary to company.
Example
1. Apple (Own Store & Online Store Success)
2. Tesla (Direct Sales)
Case Study - Nike (Own Stores and Digital Platforms)
- Detailed information in this timestamp
This video is on Marketing Channels and it has the following sub-topics.
Time Stamps
0:00 Introduction to Marketing Channel
01:24 Channel Levels
01:39 Consumer Channel
02:27 Industrial Channel
02:59 Reverse Channel
03:30 Example Apple (Own Store & Online Store Success)
05:25 Example Tesla (Direct Sales)
06:05 Case Study Nike (Own Stores and Digital Platforms)
