Chapter 9 – Marketing Channels & Channel Mapping

What are the benefits of the channel system?
Sales growth
Competitive advantage
Customer value
What is the channel system?
A combination of distribution channel and sales effort
Direct channels
The business interacts with customers at all contact points and retains ownership of the product until delivery
Indirect channels
Channel intermediaries take ownership of the product and they’re the ones who interact w/ the customer
Examples of direct channels
Direct sales and marketing
Digital marketing
Telemarketing
Reps / Agents
Examples of indirect channels
Wholesalers
Retailers
Mixed channels
Use a combination of direct and indirect channels (e.g. Apple – it has its own stores, but also distributes through retailers)
What 4 things are included in a Channel Value Proposition?
1. Sales growth: Emphasize demand and future investment
2. Profitability
3. Return on capital: Talk about the ability to get your money back
4. Brand leverage: Show how the brand can help the distribution channel
Pocket price
The price you can charge to distribution channels so that you both make money
How do you measure Channel Performance?
Customer reach
Operating efficiency
Service quality
What factors influence Channel Performance?
Deliver product performance (can the channel make sure it carries your product the way you want, and carry enough to be able to sell it?)

Deliver service quality

Build brand reputation

Manage customer interaction

Improve cost efficiency