Using Marketing Channels to Create Value for Customers
Read this chapter, which explains that a direct marketing channel consists of just two parties: the producer and the consumer. By contrast, a channel that includes one or more intermediaries (wholesalers, distributors, brokers, or agents) is an indirect channel. Firms often utilize multiple channels to reach more customers and increase their effectiveness. Some companies find ways to increase their sales by forming strategic channel alliances. Other companies look for ways to cut out the middlemen from the channel, known as disintermediation. Direct foreign investment, joint ventures, exporting, franchising, and licensing are some of the channels by which firms attempt to enter foreign markets.
Typical Marketing Channels
Key Takeaway
A
direct marketing channel consists of just two parties - a producer and a
consumer. By contrast, a channel that includes one or more
intermediaries (wholesaler, distributor, or broker or agent) is an
indirect channel. Firms often utilize multiple channels to reach more
customers and increase their effectiveness. Some companies find ways to
increase their sales by forming strategic channel alliances with one
another. Other companies look for ways to cut out the middlemen from the
channel, a process known as disintermediation. Direct foreign
investment, joint ventures, exporting, franchising, and licensing are
some of the channels by which firms attempt to enter foreign markets.