Marketing channel

A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also known as a distribution channel.^[1] A marketing channel is a useful tool for management,^[2] and is crucial to creating an effective and well-planned marketing strategy.^[3]

Another less known form of the marketing channel is the Dual Distribution^[4] channel. This channel is a less traditional form that allows the manufacturer or wholesaler to reach the end-user by using more than one distribution channel. The producer can simultaneously reach the consumer through a direct market, such as a website, or sell to another company or retailer that will reach the consumer through another channel, i.e., a store. An example of this type of channel would be franchising.^[4]

The role of marketing channels in marketing strategies

• Links producers to buyers.
• Influences the firm's pricing strategy.
• Affecting product strategy through branding, policies, willingness to stock.
• Customizes profits, installs, maintains, offers credit, etc.