What Are the Characteristics of Marketing Channels?
Marketing channels have several key characteristics. Companies must properly match those characteristics with their products and customers when deciding on a distribution strategy. One consideration when choosing a distribution channel is control. A small company has less control if it uses multiple channels or a more extensive distribution network. The upside is that small businesses may benefit from the expertise of certain distributors. Direct or Indirect Marketing channels can be direct or indirect. For example, online retailers sell directly to customers, as do movie theaters, beauty salons, independent grocers and hardware stores. However, some small manufacturers use channels such as wholesalers and retailers to sell their products. They may sell to wholesalers -- who, in turn, sell to retailers -- or sell directly to retail stores. The number of channels is largely based on a product's markup or profit margin. Small companies use fewer marketing channels when profit margins...
