Channel+Strategy

A channel strategy is a technique used to determine what the most effective way is to sell and distribute a product to the final consumer.

There are many factors that come into play when determining the most effective way for selling your product. One market facter is the consumer's buying behaviour. The consumer may want to purchase the product in store for example, or conveniently over the internet.

Also, buyer needs is an important factor when it comes to product information, installation, and service. This is why channel intermediaries are put in place between the producer and the final consumer, to take care of the consumer needs. However, intermediaries can also be a factor and have to be considered when choosing them for your product. They may not be interested in selling your product due to implications such as costs, or training involved to sell the product. Producers usually do not have the resources or the customer-based skills involved to distribute and sell the product to the final consumer. That is why they must carefully choose the right intermediaries to distribute their products.

There are three kinds of distribution strategies: Intensive distribution, Selective distribution, and Exclusive distribution. Some products have relatively short distribution channels such as large items like medical equipment, the producer sells the equipment directly to hospitals. This would be an example of Exclusive distribution. Other products such as clothing have longer distribution channels starting from the producer, who ships their products to the wholesaler, which is then distributed to various retail stores which are targeted to the consumers who would be interested in their clothes. This can either be an example of Intensive distribution or Selective distribution, depending on what kind of clothing it is and how wide of a market it is targeted to.

This information was found at http://dictionary.bnet.com/definition/channel+strategy.html and http://tutor2u.net/business/marketing/distribution_channel_strategy.asp.

By: Norman Rocheleau