Defining Channel Marketing

In order to better understand how channel marketing management is beneficial to your business, it is important to know and comprehend the basics of the practice. Even knowing the terms and process of how a product goes from the manufacturer to the consumer will help you through your channel marketing transactions. With the right strategies and programs, your business will greatly benefit with increased sales and clientele.

First, you should know what a channel is. A channel is simply a source used by a manufacturer to market and sell products to end users and consumers. Members of a channel, called channel partners, may include a direct sales force, resellers, distributors, retailers, agents, dealers, catalogs, and/or web stores. These channels are used as a means for vendors to get their product known/sold. There are different methods of selling your product. Some people will co-market, or co-brand. Depending on your channels, there are different strategies that are used.

The distributor is the person or companies that market and/or sells a product. Typically a distributor is a wholesaler or other intermediary who helps move a product from the manufacturer to a company that has been authorized to sell the product on behalf of the manufacturer.

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