Although multi-channel marketing is the current trend, it is not an entirely new concept. Multi-channel has roots in the age-old "media mix" idea, which essentially said that buyers we re reached at different times in different ways and that the most successful marketing programs contained an appropriate mix of media for the targeted audience. The theory was that effective use of multiple media helped a selling organization become top-of-mind when the buyer was ready to make a purchasing decision.
What is a Marketing Channel?
A marketing channel is basically a helpful management tool that involves a set of activities or practices that help move goods and transfer ownership of goods from the production point to a consumption point. Channels exist to serve and link and customers as well as consumers. For maintaining above average profits these channels work just like customer value building activities.
Channel Marketing Strategy
Companies need proper channel marketing strategies with specialized partner training sessions in order to earn profits. Channels are essential because product producer are generally at a large distance away from the potential consumers.
Skills also tend to vary through channel type. These channels are meant to reach consumers in a forward motion and to raw materials in a backwards motion. Many companies outsource the stages but some also handle it on their own.
This is why many retail brands have manufacturers in the West but their products are being distributed and marketed and sold in the East. A channel marketing strategy can help your brand stand out from the rest.
Some brands, like popular Soda brands, prefer maximum availability to be their strategy while others opt for rather restricted and selective channels. This is true in the case of luxury brands like Versace and Armani.
Consumers can be influenced with channel strategies like availability, pricing, selection, location and service. This also increases brand competition and brand power and reels in more profits as more and more consumers are influenced every day.
This has consequences for weaker brands because stronger brands usually come out winning with above industry margins even if the weaker brands market through strong channels. But at least the weaker brands will be able to make more money than they would without a marketing channel – even if they won't be competing with the strong brands.
Channel Marketing Strategy and Partner Training Software
Marketing channels have numerous roles in marketing strategies of brands and companies. For one thing they link the producer and buyer together. Another role is that channels perform sales, promotion and advertising so that the company doesn't have to waste time and effort in this process. Channels also influence the pricing strategy of the firm, while at the same time, affecting product strategy. This is why channel marketing is quickly becoming the most important part of the marketing system and it is in fact unavoidable. It can enhance sales and bring profits whether the company is strong or weak. One of the most cost effective and easiest ways to help partners understand this concept is to use the various channel marketing strategy and partner training software available.
Source by Walt R Robertson