Marketing channels will have a significant impact on your ROI. According to a joint study conducted by Oracle Marketing Cloud and eConsultancy, choosing marketing channels wisely will bring priorities and goals to light, giving the company’r respective teams the information they need to get products and services to consumers.
What follows is a comprehensive look at marketing channels. We’ll review exactly what marketing channels are, who uses them, how to use them effectively and how your business cannot afford to ignore them. We also offer tips and suggestions that will give you a great place to start implementing channels.
What Are Marketing Channels?
Marketing channels consist of strategies implemented for the best and most focused ways to distribute products from manufacturer to consumer. Applied effectively, the process helps manufacturers expand their revenue and their reach. The process encourages the use of social and print media, digital and print content, and even retailers and wholesalers to solidify a manufacturer’s brand.
As the majority of manufacturers do not sell directly to end users, their marketing channels can include department stores, trade shows, vending machines, catalogs, or selling to consumers through an online store. There can be the implementation of traditional models such as wholesalers and producers. Marketing channels are not relegated to physical products. Anyone hoping to sell an idea or services may use marketing channels to reach their target audience. On average, no manufacturer relies on a single channel. Most rely on multi-channel marketing.
Who Uses Marketing Channels?
Any organization that wants someone to come into their establishment and spend or any entity on the web that hopes customers use the e-cart has likely initiated marketing channels. Whether it’s through a website, a blog, print or television advertising, coupons, sales or promotional email campaigns, even the smallest enterprise should embrace this resource.
According to a 2014 survey, almost three-quarters of all businesses saw increased sales through marketing channels, over half reported a better customer experience and over 60 percent saw an increase in consumer loyalty. Companies as diverse as Apple and Burberry have been recognized for their success through marketing channels.
Ways in Which Marketing Channels Can Help Your Business
The advantages of marketing channels are immeasurable. Both consumers and manufacturers benefit from their facility.
- Greater Selection of Inventory
With products going to a range of outlets, consumers have a larger selection of suitable products from a variety of retailers.
- Education and Communication
Third parties provide consumers with needed info about pricing, product specifications and comparisons, and more, empowering consumers to make smart choices.
- Credit Facility
Marketing channel partners will sell products on credit, allowing consumers to have what they want despite lack of funds.
Retailers and wholesalers are everywhere. This means an easy and comfortable way for consumers to get what they need from favored sellers.
With these channels, third party sellers offer a number of post-sales services, including installation, repair, maintenance, home delivery and more. These services add value for consumers.
- Minimizes Constraints
Place constraints are removed, putting products where there are consumers and increasing place utility.
- Informative Links
Marketing channels will be reliable sources of feedback. Manufacturers can receive invaluable information about developments, customer concerns and ways to adjust strategies.
- Minimized Risk
Once manufacturers have fulfilled orders, they do not necessarily have to concern themselves with market risks. The burden is on the third party seller.
Third parties have the resources for providing a better customer experience. The manufacturer is not likely to be in the consumer services position that a retailer or online store would be.
Through marketing channels, manufacturers partner with third parties that take the reins of advertising. These parties implement productions on behalf of manufacturer products and services.
6 Tips for Marketing Channels
- Develop marketing channels with individual sales goals. Be detailed about sales and pipeline growth through each channel whether you’re looking for referrals, online traffic or revenue. All your marketing channels will have their partnerships and you should all be on the same page about the end game.
- Have an accurate and realistic sizing of your marketing channels. For each, estimate what would result in five, 10, 15, etc. percent of each channel. This includes prospective customers, how big the customers are and inherent revenue potential.
- Work closely with partners to develop common sales toolkits. This ensures your value proposition is sharply communicated with everyone involved, and is focused on accelerating sales growth. You want an understanding of what you’re going to do with sales collateral, email, messaging platforms, ad copy and more.
- Work with clearly defined month-to-month expectations. There should be specific goals for sales, lead activity and revenue growth. You should establish leading indicator metrics for determining if you’re meeting objectives.
- Early in the process, pump up the compensation model. In the beginning, pay for inbound leads and work toward paying points on closed deals. These sort of arrangements will get your marketing channels off to a roaring start. Get everyone in the habit of driving leads, awareness and business in your direction.
- Awareness is ensuring you use your resources to broaden your reach, building referrals and word-of-mouth. Get out there and sponsor or participate in local events that let you network. Advertise in regional and local publications. Use compelling content, as well as free and paid distribution services.
It has become more important than ever to manage market success and your competitive edge. Applying marketing channels can change business dynamics. The savvy will definitely use multi-channel marketing. This encompasses using everything from local radio ads to Facebook. Whatever your budget can afford.
In this article, we’ve defined the parameters of marketing channels and the basics for taking advantage of their benefits. Use them to get your marketing channels off the ground. If you have any tips or stories of your own to share, please do so.
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