What are the different types of channel strategies?
Manufacturers can sell their products using three primary channel strategies: direct, distribution and retail. These channel strategies can be used as the only way to control the flow of products in the hands of consumers or can be used together. Care should be paid to prevent channel conflicts if strategies are used in combination with each other. Trades between businesses are often solved in a direct way. For example, a computer manufacturer with a brand can sell a large order of personal computers (PCS) directly the main corporation, because the size of the order is so significant.
The distribution strategy is most effective for many companies because it allows them to focus on their basic product production competences without having to deal with individual customers. In a famous example, a computer manufacturer could cooperate with a value -added (VAR) seller to receive the delivery of an order from the PC manufacturer and then installed machines. The advantage is that the pointRobce is sales, but does not have to solve problems or implementation of customer services. However, a middleman or VAR must be compensated for their work, which is reduced to the manufacturer's profits. Manufacturers therefore must determine the cost benefits of distribution versus a direct channel strategy.
Thechoice of selling products on the retail market is a type of distribution strategy. For example, a paper supplier could sell goods directly to the office supermarket for further sale. Superstore distributes the product for manufacturers to the end customer. In this case, the paper supplier would not sell directly to end customers. The strategies of the Typical Channel are characterized by shop windows, physical buildings or online.
Some businesses decide to sell through a hybrid model and combine channel strategies. For example, some software companies will sell products directly to end users and willKé sell through information technology consultants. In such cases, the leadership and territories must be carefully monitored to prevent overlapping of the prospects for sale.
Usually the way in which companies define their channel strategies helps to develop their marketing plans. Whether the company decides to sell products through direct, distribution or retail model will affect its selection of marketing strategies. For example, the Guerrilla Marketing Strategy usually works well for an agile company that has a retail strategy that seeks to make a big spray with a small budget. Such campaigns usually indicate the brand of society "in the face of a" targeted consumer ". However, the Seller's Seller can choose a marketing strategy that Jetroys "Spiffs", which is bonuses granted to the partner after sale.