What are marketing channels and how to choose them? Learn everything you always wanted to know!
Posted: Thu Jan 23, 2025 7:10 am
Marketing channels are the means used to convey your product message to the end customer, that is, they are the mechanisms that allow you to display what you want to sell to the target audience.
The definition of your marketing strategies must consider different factors such as carrying out a competitor analysis, knowing your client profile and following the market mood. But, without a doubt, one of the most important is the marketing channels.
Having a good product to offer to the market is essential, but if you don't cash app database think about how to get that product into the hands of the right customer, in the right quantity and at the right time, the possibility of the business failing is very high.
And that is exactly what the definition of marketing channels is all about : knowing how to make products or services available to the end consumer according to their demands and requirements.
Just think about your Content Marketing plan , for example.
To have successful planning, you also need to know who your Buyer Persona is ; what their pains and problems are in order to produce content that addresses these issues and offers them value, right?
However, what's the point of creating sensational content if you don't know how to deliver it so that your buyer persona finds it at the right moment in their purchasing journey?
Knowing the marketing channels you can use and choosing which ones best suit your business is essential for the success of any company.
Want to know more? Keep reading this post!
What are marketing channels?
Why are marketing channels so important?
How do marketing channels work?
What is the role of marketing channels?
How to choose the best channel?
What are marketing channels?
What's the first thing you think of when you hear the word "channels"? Do you think of television channels or perhaps a water channel?
They are two very different things, but if you think about the meaning of the word channel, you will see that in both cases, and in all the others where it is used, the idea is the same: the channel is a means of distributing or transmitting something.
When we talk about television channels, they are a medium by which the broadcaster reaches the viewer or, in the case of water channels, they are the medium by which water is carried from one point to another.
Marketing channels follow the same concept, since they are the ways in which you can bring your product to your end customer , that is, they are the way you show them your products for purchase.
This is because people have less and less time to devote to any aspect of their lives and, although the act of buying is interesting for the vast majority , access to information and the Internet make the consumer increasingly rational in the time dedicated to this activity.
Thus, we can say that the main objective of marketing channels is to make a product arrive as quickly as possible to the place where the consumer expects to find it.
But placing your product in the right place when your ideal consumer is ready to buy it will vary depending on the profile of your target audience and the type of product you sell.
With this in mind, below we present the types of distribution strategies, with their intermediaries, that you can use and how to choose the best solution for your company.
Why are marketing channels so important?
To understand this a little better, let's think about the following example: what do you do when you're hungry? One possibility is to go to the kitchen, grab a piece of bread, a slice of cheese, and a glass of chocolate milk.
In fact, you can easily find these items in a store or market, right?
Now, assuming you are the cheese maker, you would likely need to purchase large quantities of milk and packaging on a weekly basis to produce your product, which would not be possible to solve with a simple trip to the market.
Transport trucks would probably need to be sent to livestock farms and packaging manufacturers every week.
However, these suppliers or sellers of these products may offer, for your convenience, the possibility of receiving orders via the Internet or by telephone and sending the products directly to your factory.
The ways in which marketers move products from the point of production to the point of consumption involve marketing channels, which are essential for carrying out the activities necessary to link the producer with the end user.
That is, the market and the distributors of packaging and milk mentioned in the example are members of a distribution channel, without which the piece of cheese would never reach your table when you are hungry.
How do marketing channels work?
The main marketing channel is the one in which the manufacturer sells directly to the consumer, without intermediaries.
For example, a farmer who produces chicken eggs can sell them directly to the consumer, without having to go through a store or market.
Another example is when your company has an e-commerce , being able to sell directly to consumers through this medium.
However, many manufacturers do not have sufficient financial resources to directly market their products, either through physical or online sales .
Consider a candy manufacturer, for example. It would cost a lot of money for this company to set up small shops to sell its candy and serve all its customers nationwide. That is why, in many cases, using intermediaries is the best solution.
Intermediaries are those who represent, distribute and even sell what is produced to the final consumer. By using them, it is possible to optimize sales results.
Below are some examples of the main intermediaries operating in marketing channels:
Retail
In this type of distribution channel, a retailer executes the purchase — which may be the owner of a specific store, market or business related to what you produce — and subsequently sells those products to the end customer.
This channel is mainly used by manufacturers that produce consumer goods such as clothing, shoes, furniture, appliances, among others.
Wholesaler
The wholesaler buys large quantities directly from the manufacturer and then sells the merchandise to industrial establishments, other merchants and retailers.
Because you buy in bulk, you manage to reduce some of the cost for your consumer.
However, in most cases, this consumer must be a legal entity or a member of a club in order to purchase from the wholesaler.
For example, a pharmaceutical wholesaler sells directly to pharmacies, and they in turn deliver the products to the end consumer.
Distributor
It is the one who sells, stores and provides technical assistance in a certain graphic region.
The distributor buys your company's products and makes a new sale to customers located in an area close to his own. As an example, we can mention beverage distributors.
Agents
When product distribution involves more than one intermediary, it is necessary to use agents to assist with transactions between all participants in the marketing channel.
An agent will receive a commission from you, as a producer, and will be very useful in cases where products need to move quickly on the market.
For example, in the case of a fisherman who catches large quantities of fish on a daily basis – a perishable product – it is essential to ensure that the fish quickly reaches the hands of the final consumer as soon as it is available for consumption, as this prevents the product from being lost.
Since making contact between different wholesalers or retailers can be time-consuming for the fisherman, the best way out in this case is to use an agent who makes all these contacts and sells the product to these intermediaries, thus earning a commission on their sales.
What is the role of marketing channels?
Ensuring the availability of the final product to the consumer is often the most crucial issue for the success of a marketing strategy .
Indeed, both the management and the selection of a company's marketing channels are typical and fundamental activities of the company's marketing director.
It is even included in one of the famous four "Ps" , Point of Sale, Price, Product and Promotion.
Choosing the best channel involves building a series of mechanisms and a network through which the company goes to market, stays in contact with its customers and performs a set of tasks, from generating demand to the physical delivery of the product.
The tasks carried out by the marketing channel also include:
provision of product information;
service customization;
quality assurance;
partitioning of lots;
offering complementary products such as after-sales and logistics.
How to choose the best channel?
To determine which marketing channel to use for your business, the best way to start is by understanding which strategy is most aligned with your product.
Intensive distribution , when the manufacturer sells through as many intermediaries as possible, should be used if the product has a low unit value and a high purchase frequency, since it will always be found on most shelves.
In the case where a product can be compared with another similar one, selective distribution is recommended – when the manufacturer sells through a selected group of intermediaries – since this way it will be possible to count on intermediaries that are better prepared to defend the brand.
But for a product that requires a specialized sales effort or an investment in specific inventory and physical facilities, the best solution is exclusive distribution – when you choose your own resellers, give them permission to do exclusive distribution of the product and control their activities.
Exclusivity will ensure adequate support for the product, even providing it with an image of value and luxury in the market.
However, to help you make a more informed decision, we have put together some tips that can help you decide which marketing channel and type of distribution will be most suitable for your company.
Note:
evaluates the markets (both actual and potential) in which you can work;
determine the characteristics, behaviors and needs of your customers, as well as the quantity, geographic dispersion and frequency of purchase of your product;
choose the essential characteristics of the product in terms of dimensions, perishability and degrees of standardization to optimize transport;
defines the characteristics that intermediaries must have in terms of the type of transport, equipment and storage system used, information technology, among other aspects;
Evaluate the environmental and local characteristics necessary for the conservation of your product, such as humidity and temperature;
Study the intermediary companies involved in your channel considering their financial strength, the other products they offer, service quality levels, marketing and brand strength.
One of the most important points on this list is to know and select the channel members, since they will be responsible not only for bringing your product to the end customer, but also your brand , always seeking to achieve the highest degree of consumer satisfaction.
It is also necessary to pay attention to the integration between the members of each channel so that the product reaches the consumer's hands at the right time.
In the end, when you are hungry, you expect the cheese to be on the shelf, no matter how it got there and what structure was used to fulfill it.
Depending on the company's willingness to control more or less the distribution of products, the number of members in a marketing channel can vary.
By implementing shorter channels, you will have much more control , allowing you to change your actions and strategies more quickly to improve the entire flow of products in the market, and achieve faster and purer consumer feedback.
Nowadays, there is a wide variety of channels available on the market and choosing the best way to promote and distribute your product can be a big problem, since a wrong choice at that moment can compromise your entire marketing plan.
However, the use of channels is essential to reach the consumer in the best way and establish alliances with companies that can profitably benefit your business.
The definition of your marketing strategies must consider different factors such as carrying out a competitor analysis, knowing your client profile and following the market mood. But, without a doubt, one of the most important is the marketing channels.
Having a good product to offer to the market is essential, but if you don't cash app database think about how to get that product into the hands of the right customer, in the right quantity and at the right time, the possibility of the business failing is very high.
And that is exactly what the definition of marketing channels is all about : knowing how to make products or services available to the end consumer according to their demands and requirements.
Just think about your Content Marketing plan , for example.
To have successful planning, you also need to know who your Buyer Persona is ; what their pains and problems are in order to produce content that addresses these issues and offers them value, right?
However, what's the point of creating sensational content if you don't know how to deliver it so that your buyer persona finds it at the right moment in their purchasing journey?
Knowing the marketing channels you can use and choosing which ones best suit your business is essential for the success of any company.
Want to know more? Keep reading this post!
What are marketing channels?
Why are marketing channels so important?
How do marketing channels work?
What is the role of marketing channels?
How to choose the best channel?
What are marketing channels?
What's the first thing you think of when you hear the word "channels"? Do you think of television channels or perhaps a water channel?
They are two very different things, but if you think about the meaning of the word channel, you will see that in both cases, and in all the others where it is used, the idea is the same: the channel is a means of distributing or transmitting something.
When we talk about television channels, they are a medium by which the broadcaster reaches the viewer or, in the case of water channels, they are the medium by which water is carried from one point to another.
Marketing channels follow the same concept, since they are the ways in which you can bring your product to your end customer , that is, they are the way you show them your products for purchase.
This is because people have less and less time to devote to any aspect of their lives and, although the act of buying is interesting for the vast majority , access to information and the Internet make the consumer increasingly rational in the time dedicated to this activity.
Thus, we can say that the main objective of marketing channels is to make a product arrive as quickly as possible to the place where the consumer expects to find it.
But placing your product in the right place when your ideal consumer is ready to buy it will vary depending on the profile of your target audience and the type of product you sell.
With this in mind, below we present the types of distribution strategies, with their intermediaries, that you can use and how to choose the best solution for your company.
Why are marketing channels so important?
To understand this a little better, let's think about the following example: what do you do when you're hungry? One possibility is to go to the kitchen, grab a piece of bread, a slice of cheese, and a glass of chocolate milk.
In fact, you can easily find these items in a store or market, right?
Now, assuming you are the cheese maker, you would likely need to purchase large quantities of milk and packaging on a weekly basis to produce your product, which would not be possible to solve with a simple trip to the market.
Transport trucks would probably need to be sent to livestock farms and packaging manufacturers every week.
However, these suppliers or sellers of these products may offer, for your convenience, the possibility of receiving orders via the Internet or by telephone and sending the products directly to your factory.
The ways in which marketers move products from the point of production to the point of consumption involve marketing channels, which are essential for carrying out the activities necessary to link the producer with the end user.
That is, the market and the distributors of packaging and milk mentioned in the example are members of a distribution channel, without which the piece of cheese would never reach your table when you are hungry.
How do marketing channels work?
The main marketing channel is the one in which the manufacturer sells directly to the consumer, without intermediaries.
For example, a farmer who produces chicken eggs can sell them directly to the consumer, without having to go through a store or market.
Another example is when your company has an e-commerce , being able to sell directly to consumers through this medium.
However, many manufacturers do not have sufficient financial resources to directly market their products, either through physical or online sales .
Consider a candy manufacturer, for example. It would cost a lot of money for this company to set up small shops to sell its candy and serve all its customers nationwide. That is why, in many cases, using intermediaries is the best solution.
Intermediaries are those who represent, distribute and even sell what is produced to the final consumer. By using them, it is possible to optimize sales results.
Below are some examples of the main intermediaries operating in marketing channels:
Retail
In this type of distribution channel, a retailer executes the purchase — which may be the owner of a specific store, market or business related to what you produce — and subsequently sells those products to the end customer.
This channel is mainly used by manufacturers that produce consumer goods such as clothing, shoes, furniture, appliances, among others.
Wholesaler
The wholesaler buys large quantities directly from the manufacturer and then sells the merchandise to industrial establishments, other merchants and retailers.
Because you buy in bulk, you manage to reduce some of the cost for your consumer.
However, in most cases, this consumer must be a legal entity or a member of a club in order to purchase from the wholesaler.
For example, a pharmaceutical wholesaler sells directly to pharmacies, and they in turn deliver the products to the end consumer.
Distributor
It is the one who sells, stores and provides technical assistance in a certain graphic region.
The distributor buys your company's products and makes a new sale to customers located in an area close to his own. As an example, we can mention beverage distributors.
Agents
When product distribution involves more than one intermediary, it is necessary to use agents to assist with transactions between all participants in the marketing channel.
An agent will receive a commission from you, as a producer, and will be very useful in cases where products need to move quickly on the market.
For example, in the case of a fisherman who catches large quantities of fish on a daily basis – a perishable product – it is essential to ensure that the fish quickly reaches the hands of the final consumer as soon as it is available for consumption, as this prevents the product from being lost.
Since making contact between different wholesalers or retailers can be time-consuming for the fisherman, the best way out in this case is to use an agent who makes all these contacts and sells the product to these intermediaries, thus earning a commission on their sales.
What is the role of marketing channels?
Ensuring the availability of the final product to the consumer is often the most crucial issue for the success of a marketing strategy .
Indeed, both the management and the selection of a company's marketing channels are typical and fundamental activities of the company's marketing director.
It is even included in one of the famous four "Ps" , Point of Sale, Price, Product and Promotion.
Choosing the best channel involves building a series of mechanisms and a network through which the company goes to market, stays in contact with its customers and performs a set of tasks, from generating demand to the physical delivery of the product.
The tasks carried out by the marketing channel also include:
provision of product information;
service customization;
quality assurance;
partitioning of lots;
offering complementary products such as after-sales and logistics.
How to choose the best channel?
To determine which marketing channel to use for your business, the best way to start is by understanding which strategy is most aligned with your product.
Intensive distribution , when the manufacturer sells through as many intermediaries as possible, should be used if the product has a low unit value and a high purchase frequency, since it will always be found on most shelves.
In the case where a product can be compared with another similar one, selective distribution is recommended – when the manufacturer sells through a selected group of intermediaries – since this way it will be possible to count on intermediaries that are better prepared to defend the brand.
But for a product that requires a specialized sales effort or an investment in specific inventory and physical facilities, the best solution is exclusive distribution – when you choose your own resellers, give them permission to do exclusive distribution of the product and control their activities.
Exclusivity will ensure adequate support for the product, even providing it with an image of value and luxury in the market.
However, to help you make a more informed decision, we have put together some tips that can help you decide which marketing channel and type of distribution will be most suitable for your company.
Note:
evaluates the markets (both actual and potential) in which you can work;
determine the characteristics, behaviors and needs of your customers, as well as the quantity, geographic dispersion and frequency of purchase of your product;
choose the essential characteristics of the product in terms of dimensions, perishability and degrees of standardization to optimize transport;
defines the characteristics that intermediaries must have in terms of the type of transport, equipment and storage system used, information technology, among other aspects;
Evaluate the environmental and local characteristics necessary for the conservation of your product, such as humidity and temperature;
Study the intermediary companies involved in your channel considering their financial strength, the other products they offer, service quality levels, marketing and brand strength.
One of the most important points on this list is to know and select the channel members, since they will be responsible not only for bringing your product to the end customer, but also your brand , always seeking to achieve the highest degree of consumer satisfaction.
It is also necessary to pay attention to the integration between the members of each channel so that the product reaches the consumer's hands at the right time.
In the end, when you are hungry, you expect the cheese to be on the shelf, no matter how it got there and what structure was used to fulfill it.
Depending on the company's willingness to control more or less the distribution of products, the number of members in a marketing channel can vary.
By implementing shorter channels, you will have much more control , allowing you to change your actions and strategies more quickly to improve the entire flow of products in the market, and achieve faster and purer consumer feedback.
Nowadays, there is a wide variety of channels available on the market and choosing the best way to promote and distribute your product can be a big problem, since a wrong choice at that moment can compromise your entire marketing plan.
However, the use of channels is essential to reach the consumer in the best way and establish alliances with companies that can profitably benefit your business.