Selecting Marketing Channels

Recently we have been talking about marketing channels, which is a group of individuals and organizations directing the flow of products from producers to customers. Selecting an appropriate marketing channel is very important and many factors play a role in selecting what kind of marketing channel to use. Some of the characteristics that play a role include customer characteristics, product attributes, the type of organization, competition, marketing environmental forces, and characteristics of intermediaries.

The characteristics of the customer you are trying to market your product to is very important personally. Since the customer is the main reason an organization is in business, to get the product to them that is, the target-market must have an appropriate channel. Consumers typically like to buy limited quantities of a product and do not buy in bulk or complex products as businesses often do. An organization may choose to have a direct channel in more heavily populated areas such as large metropolitans or cities, as the organization can market to more potential customers and have the product more readily available. In areas that are more spread out and do not have as large of a market density, an organization may choose to use an intermediary. This is when the organization uses a third party, who in turn sells the product to the customer. Retail stores, supermarkets, and other similar stores are examples of intermediaries.

Since the customer should be the main focus of the business, it is imperative to keep their needs and wants in mind, and how far out of their way are they willing to go to buy your product. Using an intermediary can be very important and can save a company a lot of money in the long-run when trying to reach customers who are not in an area of high market density. Marketing managers must carefully consider all of these options when choosing an appropriate marketing channel. Do you think the characteristics of the customer is the most important factor when choosing a marketing channel? If not, which one is better?